fell 2.01 per cent to ₹384.75 on the by early afternoon Monday, even as multiple brokerages issued positive ratings following the company’s announcement to fully integrate its subsidiary Biocon Biologics Limited (BBL).
The pharmaceutical major on December 6 unveiled plans to acquire the remaining 23.3 per cent minority stake in BBL through a combination of share swaps and cash, valuing the biologics unit at $5.5 billion. The transaction involves issuing approximately 171.3 million Biocon equity shares worth $773 million and a cash payment of $400 million to minority shareholders including Viatris, Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP.
upgraded Biocon to ‘Buy’ with a target price of ₹476, projecting the deal could add 10 per cent to valuation by eliminating the holding company discount. The brokerage forecast revenue, EBITDA and profit growth of 14 per cent, 23 per cent and 42 per cent respectively between FY25-28, citing upcoming biosimilar launches and margin expansion as key drivers.
Bank of America Securities maintained its ‘Buy’ rating with a ₹455 target, calling the deal “net neutral” while flagging potential dilution from the planned ₹4,500 crore qualified institutional placement to fund the Viatris cash component. Avendus Spark also rated the stock ‘Add’ with a ₹435 target, highlighting commercial synergies in diabetes care.
Goldman Sachs held a ‘Neutral’ stance with a ₹375 target, noting the simplified corporate structure and operational benefits but expressing caution on valuation. The integration, expected to complete by March 31, 2026, will consolidate BBL’s global biosimilars business serving 120+ countries with Biocon’s generics portfolio of over 90 products.
Separately, Biocon Pharma received US FDA tentative approval for generic Parkinson’s disease treatment, viewed positively for medium-term prospects. The stock has declined 6 per cent from its 52-week high of ₹424.95 recorded on November 18.