Biocon Shares Tank 8% in Morning Session Post Acquisition Deal

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Biocon Shares Tank 8% in Morning Session Post Acquisition Deal

By Malvika Gurung

Investing.com -- Shares of the pharmaceutical major Biocon (NS: BION ) tanked 7.86% to Rs 363.55 apiece at 10:31 am on Monday, after the company’s subsidiary Biocon Biologics (BBL) entered into a definitive agreement with the US-based global healthcare company Viatris (NASDAQ: VTRS ) to acquire its biosimilars business on Sunday.

The acquisition deal of Viatris’ biosimilars assets is worth up to $3.34 billion, of which nearly $2.34 billion will be paid in cash and the remaining amount through convertible preference shares.

Both the companies’ boards have given a green signal to the acquisition deal and the transaction is expected to complete by the second half of 2022.

Through the acquisition, BBL will get the global commercial infrastructure of Viatris in the developed and emerging markets.

This will expand BBL’s EBITDA base and bolster the overall financials. It will also create a unique fully integrated, world-leading biosimilars enterprise, stated the company.

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