Drugmaker Biocon Ltd is engaged with generic drug maker Mylan to merge their biosimilar business, the financial news site Moneycontrol reported on Thursday citing sources who have intimate knowledge of the situation.
Biocon intends to seek the majority of the controlling of the newly formed entity. Both firms will also be looking for the possibility of an initial public offer (IPO) to the company after the merger in which they look to raise more than $10 billion, according to the report.
Spokespersons of Biocon as well as Viatris Inc, the company that was created after the merger of Mylan together with Pfizer Inc’s off-patent brand drugs business, told Biocon and Viatris Inc. do not make statements on speculation and market rumors.
Biocon’s biosimilars business, Biocon Biologics and Viatris already have a long-lasting collaboration agreement that allows them to produce, develop and commercialize an extensive range of biosimilars as well as diabetes generic medications, including the insulin injector Semglee.
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On September 11, Biocon announced that its biosimilar division will offer 15 percent of the stake to the Serum institute of India affiliate to gain access to a multitude of vaccine doses which include COVID-19 shots. The deal was valued by Biocon Biologics at around $4.9 billion.
Biocon Biologics is also raising capital through a number of rounds in the last year, from prominent names like the Abu Dhabi-based ADQ, Goldman Sachs and Tata Capital Growth Fund.
Biocon’s shares were trading down 1.9 percent as of 12:30 pm, in a down Mumbai market.