 "Biocon Biologics set to integrate Viatris' biosimilars biz ahead of plan")
Biocon Biologics (BBL), which doubled its revenues year-on-year (YoY) during the first quarter of financial year 2023-24 (FY24) — driven by acquisition of the biosimilars business from US giant Viatris — is eyeing to integrate the entire acquired business ahead of plan.
Speaking to Business Standard, Shreehas Tambe, chief executive officer (CEO) and managing director (MD) of BBL said it has a two-year transition services agreement (TSA) with Viatris since November last year, when the deal was signed.
“Having integrated the 70 countries in emerging markets well, and now with a strong leadership team in place, we would accelerate the transition. The North America transition would be completed by the end of this quarter, which is a significant acceleration (less than a year since the deal),” Tambe said. He added that the rest of the business would be integrated before the end of FY24.
This would give BBL operational control over the acquired business, which at the moment is run by Viatris to a large extent. Employees that came through the acquisition are still on Viatris payroll.
“We also pay a transition fee to Viatris, which will fall off,” Tambe said.
BBL is also working to raise funds from private equity players to retire part of the $1.4 billion debt. This is the debt in its books due to the acquisition.
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“We are working with investors who have an active interest in the BBL growth story. Not at a stage where we can comment yet,” Tambe said.
He had told Business Standard in May that the company will think of an initial public offering (IPO) once the integration is complete.
BBL reported a YoY growth of 106 per cent in revenue during Q1 at Rs 2,015 crore.
Earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter stood at Rs 457 crore, up 141 per cent, representing an Ebitda margin of 23 per cent.