Kiran Mazumdar-Shaw Hits ‘Merge’ Instead of ‘List’ for Biocon’s Biosimilars

Unknown Apr 02, 2026 800 Views

Biocon, one of India's largest biopharma firms, is shifting its strategy for its biosimilars business. Chairperson Kiran Mazumdar-Shaw has said that while the long-awaited IPO for the biosimilars division is now in abeyance, the firm is looking instead to a possible merger in its biosimilar operations. This is being done at a time when integration efforts continue, stake buybacks have happened in recent times, and there is an ambitious expansion plan abroad.

IPO Plans Delayed

Biocon had earlier planned a public listing of its biosimilars business by March 2026 to unlock value and drive greater growth.
The IPO timeline has been pushed further with the company now focusing on internal consolidation and complete control over its biosimilars operations before listing.

Biosimilar Unit Merger in the Limelight

The company is looking to merge its biosimilar units to consolidate operations and consolidate its market position before any public issue.
Integration of the acquired businesses, including Viatris' biosimilars business, is in the final stages, which is viewed as a prerequisite for the long-term listing plans.

Stake Buyback and Consolidation of Owners

Biocon recently purchased a 1.5% investor holding in Biocon Biologics for Rs 550 crore, bringing its ownership to 90.2%.
The buyback is part of a larger strategy for consolidating control over the biosimilars business ahead of future st

Expansion and Market Growth

Biocon is eyeing a double-digit market share in the U.S. for five new biosimilars that will be introduced next fiscal year, with follow-on launches to be scheduled for Europe.
The U.S. presently contributes approximately 40% to Biocon's revenues, while Europe provides 35%.

Strong Biosimilar Pipeline

The biosimilars business has a portfolio of 28 molecules and is working on expanding into new therapeutic areas including diabetes, oncology, and immunotherapy.

Financial Performance and Outlook

In spite of a steep year-on-year decline in net profit for Q3 FY25, Biocon's revenue and EBITDA have increased due to rising biosimilar market share and strategic approvals.
The company remains positive about future growth, driven by new launches and positive regulatory developments.

Strategic Rationale

Kiran Mazumdar-Shaw stresses a well-balanced portfolio, as Biocon's structure provides options for investors to pick and choose between pure-play biologics, generics, or research services.

Its ongoing emphasis on internal consolidation and geographical expansion is likely to make Biocon Biologics a world leader in affordable biologic therapies.

Sources: 5Paisa, Economic Times, CNBC TV18

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