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Biocon Ltd.’s subsidiary Biocon Biologics Ltd. (BBL) has completed the acquisition of Viatris’ global biosimilars business for $3.34 billion.

Biocon Biologics will now recognise the combined revenue and associated profits from the acquired products, a step-up from the existing profit share arrangement.

The deal was in cash and stock buying. Biocon’s stake in Biocon Biologics will be 68 percent. Rajiv Mallik, President of Viatris, joined the board of Biocon Biologics on November 29.

Payment for the acquisition was made via part equity and part cash comprising upfront cash payment of $2 billion and issuance of CCPS (compulsorily convertible preference shares) worth $1 billion equal to a 12.9 percent stake to Viatris Co. in the process of closing mezzanine funding of over $400 million for deal closure.

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The acquisition has been done through the purchase of a 100 percent stake in Biosimilar New Co. Ltd. (BNCL), a company incorporated in the United Kingdom, and a subscription to a 100 percent stake in Biosimilar Collaborations Ireland Ltd. (BCIL), a company incorporated in Ireland.

Pursuant to such acquisitions, BNCL and BCIL have become step-down subsidiaries of BBL and indirect subsidiaries of Biocon Ltd. As per the deal, Viatris will provide commercial plus other services for up to two years and the product portfolio will have a total of eight commercialised products.

Shares of Biocon Ltd. are trading at Rs 284.15, up 0.73 percent.

(Edited by : Rukmani Krishna)