Biocon shares fall over 11% after subsidiary buys Viatris' biosimilars business for $3 bn
Biocon stock opened with a loss of 9.36% at Rs 181 against the previous close of Rs 199.70 on BSE. The stock touched an intraday low of Rs 347.9, falling 11.73% on BSE.
- Feb 28, 2022,
- Updated Feb 28, 2022 3:31 PM IST
Shares of Biocon slipped over 11% today after the firm said its arm Biocon Biologics Ltd (BBL) would acquire Viatris' biosimilars business in a $3.3 billion cash and stock deal. Biocon stock opened with a loss of 9.36% at Rs 181 against the previous close of Rs 199.70 on BSE. The stock touched an intraday low of Rs 347.9, falling 11.73% on BSE.
Biocon shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has lost 10.6% and fallen 4.37% since the beginning of this year.
Total 4.44 lakh shares of the firm changed hands amounting to a turnover of Rs 16.17 crore. Market cap of the firm fell to Rs 41,774 crore on BSE.
The share hit its 52-week high of Rs 424.10 on April 9, 2021 and a 52 week low of Rs 314.90 on October 25, 2021.
Viatris will receive consideration of up to $3.335 billion, including cash up to $2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at $1 billion.
Also read: Biocon Biologics buys Viatris’ biosimilars assets for up to $3 bn
BBL will have a comprehensive portfolio comprising its current range of commercialised insulins, oncology and immunology biosimilars as well as several other biosimilar assets currently under development. BBL also has access to the vaccines portfolio through its previously announced partnership with Serum Institute Life Sciences (SILS).
This strategic combination brings together the complementary capabilities and strengths of both partners and prepares us for the next decade of value creation for all our stakeholders," said Kiran Mazumdar-Shaw, executive chairperson, Biocon Biologics.
"The deal will enable BBL to attain a robust commercial engine in the developed markets of U.S. and Europe and will fast-track our journey of building a strong global brand. It will also make us future-ready for the next wave of products," she added.
Shares of Biocon slipped over 11% today after the firm said its arm Biocon Biologics Ltd (BBL) would acquire Viatris' biosimilars business in a $3.3 billion cash and stock deal. Biocon stock opened with a loss of 9.36% at Rs 181 against the previous close of Rs 199.70 on BSE. The stock touched an intraday low of Rs 347.9, falling 11.73% on BSE.
Biocon shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has lost 10.6% and fallen 4.37% since the beginning of this year.
Total 4.44 lakh shares of the firm changed hands amounting to a turnover of Rs 16.17 crore. Market cap of the firm fell to Rs 41,774 crore on BSE.
The share hit its 52-week high of Rs 424.10 on April 9, 2021 and a 52 week low of Rs 314.90 on October 25, 2021.
Viatris will receive consideration of up to $3.335 billion, including cash up to $2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at $1 billion.
Also read: Biocon Biologics buys Viatris’ biosimilars assets for up to $3 bn
BBL will have a comprehensive portfolio comprising its current range of commercialised insulins, oncology and immunology biosimilars as well as several other biosimilar assets currently under development. BBL also has access to the vaccines portfolio through its previously announced partnership with Serum Institute Life Sciences (SILS).
This strategic combination brings together the complementary capabilities and strengths of both partners and prepares us for the next decade of value creation for all our stakeholders," said Kiran Mazumdar-Shaw, executive chairperson, Biocon Biologics.
"The deal will enable BBL to attain a robust commercial engine in the developed markets of U.S. and Europe and will fast-track our journey of building a strong global brand. It will also make us future-ready for the next wave of products," she added.