Biocon Limited shares experienced a decline of 2.01% to ₹384.75 on the National Stock Exchange (NSE) by early afternoon on Monday, despite several brokerages issuing optimistic ratings following the company’s announcement regarding the complete integration of its subsidiary, Biocon Biologics Limited (BBL).
On December 6, Biocon disclosed its plans to acquire the remaining 23.3% minority stake in BBL through a mix of share swaps and cash, which values the biologics unit at $5.5 billion. The deal includes the issuance of approximately 171.3 million Biocon equity shares, valued at $773 million, along with a cash payment of $400 million to minority shareholders, which include Viatris, Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP.
JM Financial upgraded Biocon to a ‘Buy’ rating with a target price set at ₹476, suggesting that the transaction could enhance valuation by 10% by eliminating the holding company discount. The brokerage projects revenue, EBITDA, and profit growth of 14%, 23%, and 42% respectively from FY25 to FY28, attributing this growth to upcoming biosimilar launches and margin improvement as significant factors.
Bank of America Securities maintained its ‘Buy’ rating, setting a target price of ₹455 and describing the deal as “net neutral,” while also cautioning about potential dilution linked to the proposed ₹4,500 crore qualified institutional placement aimed at funding the cash component payable to Viatris. Similarly, Avendus Spark rated the stock as an ‘Add’ with a ₹435 target, highlighting anticipated commercial synergies in diabetes care.
Goldman Sachs took a ‘Neutral’ stance with a target price of ₹375, noting that while the integration simplifies the corporate structure and brings operational benefits, caution is warranted on valuation. The integration is expected to conclude by March 31, 2026, consolidating BBL’s global biosimilars business, which serves over 120 countries, with Biocon’s generics portfolio of more than 90 products.
In a separate development, Biocon Pharma secured US FDA tentative approval for a generic treatment for Parkinson’s disease, which is regarded positively for the company’s medium-term prospects. Since reaching a 52-week high of ₹424.95 on November 18, the stock has declined by 6%.
Published on December 8, 2025.
