Biocon Biologics gets credit rating upgrade by S&P

Biocon

Biocon Biologics Ltd., the biosimilar arm of Biocon on Wednesday said its long‑term issuer credit rating was upgraded by S&P Global Ratings to BB+ from BB and the outlook was revised to Stable, following the biosimilars maker’s simplification of its capital structure and settlement of a $1 billion preference‑share obligation owed to Viatris Inc.

The upgrade extends to the senior secured notes issued by Biocon Biologics Global PLC. Biocon retired the CCPS liability through a mix of equity swaps and a cash payout funded by about $460 million in fresh equity raised earlier this month.

S&P expects Biocon’s leverage to improve meaningfully, with adjusted debt projected to decline over the next 12–24 months as earnings rise on the back of biosimilar demand and new product launches.

Shares of parent company Biocon gained 1.34%, to close at Rs.370.15 on BSE on Wednesday, following the ratings announcement.

Industry tailwinds

S&P cited favourable growth trends in GLP‑1 therapies, oncology, and rare‑disease biologics as supportive of Biocon’s earnings trajectory. The company currently serves patients in over 120 countries and has commercialized 10 biosimilars with a pipeline of over 20 assets.

S&P said the stable outlook reflects expectations that Biocon Biologics will maintain its improved financial position as biosimilar adoption accelerates globally.