Biocon is contemplating the sale of its generic active pharmaceutical ingredient (API) business, valued at around $1.5 billion, as part of a strategic move to reduce its overall debt. Although the generic API business was once the main driver for Biocon, its impact on the company’s consolidated financials has diminished over time. Biocon has intentionally shifted its focus to establish itself as a major player in the global biosimilars market. In the fiscal year 2022-23, biosimilars contributed nearly 50% of Biocon’s total revenue, reaching ₹11,550 crore.
As reported by Outlook BUSINESS+MONEY, Biocon made a significant investment of $3.34 billion in biosimilars through the acquisition of the drug segment from Viatris last November. The funding for this deal, involving both Biocon Ltd and Biocon Biologics, included a $1.2 billion loan obtained by Biocon Biologics.
To finance the acquisition of Viatris’ biosimilar assets, Biocon has purportedly divested a portion of its stake in Syngene. Biocon’s API portfolio includes crucial ingredients used in the production of medicines for diabetes, cardiac ailments, multiple sclerosis, immune reactions resulting from organ transplants, and anti-cancer drugs.
