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Biocon Biologics to float in next two years: Kiran Mazumdar-Shaw

"The value of this business post Viatris deal will jump to $8 billion," Shaw said

February 28, 2022 / 01:40 PM IST

Biocon Biologics, which has said it will acquire the biosimilars business of Viatris Inc for $3.335 billion, will file for an initial public offering (IPO) in 18-24 months, executive chairperson Kiran Mazumdar-Shaw told CNBC-TV18 on February 28.

Biocon is well positioned to tap the biosimilar opportunity globally. With this deal Biocon Biologics is scripting a new chapter, she added.

"Aflibercept injection is a part of this deal and we have the option to buy it by FY25," Shaw said.

"Built the biosimilar business in the last few years, and the intent is to make it more affordable. Biosimilar offers a global opportunity. 58 percent of biosimilars approved in the European Union were between 2017 and 2019. The trend of uptick in biosimilars is expected to continue for the next 10 years," she added.

Shaw estimates that in the next 10 years the biosimilar business will be $75 billion globally.


"The acquisition of Viatris’ biosimilar business will make Biocon Biologics a global vertical leader," she said adding that the deal will expand the EBITDA base and geographical reach.

"The Viatris transaction is part cash and part equity. It is structured to ensure seamless transaction. There are minimum overlaps in the two entities, which will ensure continuity. The value of this business post Viatris deal will jump to $8 billion," Shaw added.

Biocon Biologics was last valued at $4.9 billion in the funding round in September.

Shaw said that the deal will be completed in the second half of 2022.

"IPO of Biocon Biologics will be at attractive levels and I am confident that the present level of debt will come down," she said.

"Biosimilar business is a richly valued business globally and Viatris has made huge investments in it. The shareholders have to benefit from SOTP (sum-of-the-part) valuation of Biocon," she added.


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Moneycontrol News
first published: Feb 28, 2022 01:40 pm
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