Biocon has issued a clarification regarding recent media reports suggesting that the company is considering a potential merger of its unlisted subsidiary, Biocon Biologics Ltd. (BBL), along with IPO and share swap options.

In a statement issued under Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Biocon said it has already communicated its position in a press release dated May 8, 2025. At that time, the Board had announced the formation of a committee to evaluate strategic restructuring options, including a possible merger of BBL with the parent entity.

The press release stated, “The Board is constituting a committee to evaluate various strategic options for restructuring, including the merger of BBL and BL. Such options shall be evaluated taking into consideration matters relating to legal and tax aspects, and subject to receipt of all approvals, including approval of the Board and the shareholders of the company and other regulatory/statutory approvals, permissions, and consents, as may be necessary in accordance with terms of various contracts entered into by the company or its subsidiaries, and as per applicable laws.”

Biocon emphasised that the constituted committee is still evaluating the best value creation option, and that no material event or information requiring disclosure under Regulation 30 has arisen at this stage.

“The company adheres to the highest standards of governance and disclosures and will make appropriate disclosures in compliance with applicable laws, as and when required,” Biocon said.

The company reported a robust performance for the fiscal second quarter ended September 30, 2025, with consolidated operating revenue rising 20 percent year-on-year to Rs 4,296 crore. The growth was fuelled by strong momentum in the biosimilars segment, improved traction in generics, and steady performance in the CRDMO business.

Kiran Mazumdar-Shaw, Chairperson of Biocon Group, said, “With the Board approval of the settlement of structured debt obligations, we will strengthen our balance sheet, enhance financial flexibility and improve profitability. Our partnership with the State of California through Civica Inc. under the CalRx initiative, marks a landmark step in expanding affordable insulin access in the US, with potential to extend to other states. With a resilient foundation, differentiated portfolio, and clear strategy, we are well-positioned to sustain growth and deliver long-term value to our stakeholders.”

Revenue from the generics segment stood at Rs 774 crore, up 24 percent year-on-year.  

Siddharth Mittal, CEO & Managing Director of Biocon, said growth was driven primarily by an uptick in recently launched products in the US and EU, as well as growth in the generic formulations base business, and the API business.

“A key highlight of this quarter was the inauguration of Biocon’s first Oral Solid Dosage (OSD) manufacturing facility in the United States, a significant step towards expanding access to our vertically integrated portfolio for patients in the region. We commenced filings for Semaglutide (gOzempic) in various markets, including Canada and Brazil,” Mittal said.  

Performance in Q2 was supported by recently launched generic formulations such as Liraglutide, Dasatinib and Sacubitril+Valsartan, alongside increased sales from the formulations and API base businesses.

The Biosimilars segment delivered another strong quarter, recording INR 2,721 crore in revenue, a 25 percent YoY increase.

Shreehas Tambe, CEO & Managing Director of Biocon Biologics, said the business achieved 11 percent sequential growth supported by market share expansion in key therapy areas and successful new product launches.

“In the US, we continue to expand access to biosimilars by leveraging the strength of our commercial platform.  In FY26, we launched four biosimilars across key global markets and remain on track for the bDenosumab launch,” Tambe noted.

The company secured 13 new approvals and executed 19 product launches across key markets during the quarter.

The CRDMO (Contract Research Development & Manufacturing Organization) business reported revenues of INR 911 crore during Q2FY26.

Peter Bains, CEO & Managing Director, Syngene International, said, “Our Q2 results reflect strong underlying revenue growth in research services, which has offset the expected inventory correction in biologics manufacturing. We continue to maintain our annual guidance for FY26.”

Bains added that Syngene is building a GMP bioconjugation suite at its Bengaluru biologics facility, which will enable end-to-end manufacturing of Antibody Drug Conjugates (ADCs), positioning them among a select group of CRDMOs offering comprehensive ADC services.