Biocon looks to close Viatris acquisition as soon as possible

Biocon posted a mixed set of earnings for the second quarter of the financial year. The reported revenue was up 26 percent but margin contracted. Kiran Mazumdar Shaw, Executive Chairperson, Biocon spoke to CNBC-TV18 about the quarter gone by and key updates on the Viatris acquisition.

The company is looking to close the Viatris deal where the company is looking to buy the global biosimilar business, which is expected to conclude soon. Biocon has raised $150 million from Serum for this and Adar Poonawala company will eventually hold around 12 percent stake in Viatris.

“We are at a very crucial stage of the Viatris acquisition. The way we are looking at it is that we would like to close the deal as soon as possible since we got the necessary regulatory permissions to go ahead with this deal,” Shaw said.

“We have put in place the $1.2 billion debt, we have arranged for that and the $800 million is coming through a combination of Mezannine Financing as well as equity investment which includes $150 million coming from Serum and the remaining $650 million coming from Biocon,” Shaw explained the funding.

Biocon itself is putting in $230 million through its own reserves which included the Syngene stake sale of $150 million. The balance will come through Mezannine Financing which also will be funded through equity and other means.

Biocon will have a 68 percent stake in Biocon Biologics and Viatris will hold 12.9 percent stake in Biocon Biologics.