*

Biocon to acquire stakes via share swaps with Serum

Institute,

Tata Capital, Activ Pine

*

Shreehas Tambe to lead combined entity as CEO, managing

director

*

Biocon reviewed IPO, merger options before choosing

integration

(Adds details in paragraph 5, bullet points, byline, dateline)

By Rishabh Jaiswal and Rishika Sadam

BENGALURU, Dec 6 (Reuters) - Indian biopharmaceutical

company Biocon said on Saturday it would fully

integrate its biosimilar unit Biocon Biologics as a

wholly owned subsidiary, consolidating Biocon's biosimilars and

generics businesses under one roof.

Biocon said it will acquire the remaining stakes in Biocon

Biologics from Serum Institute Life Sciences, Tata Capital

Growth Fund II and Activ Pine LLP through a share swap of 70.28

Biocon shares for every 100 Biocon Biologics shares, at a price

of 405.78 Indian rupees ($4.51) per Biocon share. The deal

values Biocon Biologics at $5.5 billion.

Biocon Biologics Chief Executive Shreehas Tambe will be CEO

and managing director of the combined entity, and Kedar Upadhye

will be the chief financial officer, Biocon said in a press

release. Biocon CEO Siddharth Mittal will transition to a group

leadership role.

The integration is expected to be completed by March 31.

Bengaluru-based Biocon said it reviewed several options for

Biocon Biologics, including an IPO and a merger, before deciding

that an integration through the purchase of minority stakes

"offers the most efficient and value-accretive path forward".

Tambe told Reuters in January that Biocon might list its key

biosimilars business by March 2026 and aimed for a double-digit

share in its core U.S. market for its new launches.

Biosimilars are similar and relatively affordable versions

of high-priced and complex biologics drugs used to treat

illnesses such as cancer and autoimmune diseases.

Biocon, which had earlier been pushing its IPO plans, has

been waiting to complete the integration of its acquired

biosimilars firm Viatris ( VTRS ) and refinance debt.

The company said on Saturday it would also buy the residual

stake held by Viatris ( VTRS ) for $815 million, out of which

$400 million will be payable in cash and $415 million in a share

swap.

The company also approved raising additional capital of up

to 45 billion Indian rupees ($500 million) through a Qualified

Institutional Placement, with proceeds going towards the cash

component payable to Viatris ( VTRS ).

($1 = 89.9340 Indian rupees)