Mumbai: US-based generic pharma major Mylan has sold its 5.64% share in Biocon Ltd within 6 months of getting it. The shares were allocated to it as part of an agreement with Biocon following Biocon Biologics’ acquisition of Mylan’s global biosimilars business for $3.33 billion. Initially, Mylan received a 12.9% stake in Biocon Biologics as part of the deal, which was eventually converted into a 5.64% stake in Biocon as Biocon Biologics became a wholly owned subsidiary.
Initially working just as a research partner for Mylan, the biosimilar acquisition helped Biocon transform into a fully integrated, global pharmaceutical company with an entrenched distribution network across the US and Europe, giving it full ownership of leading revenue streams and profit margins. For Mylan, the residual 5.64% stake has been a non-core investment that it was expected to exit sooner or later.
The total transaction size was about ₹3,679 crore, with shares being sold at ₹400 a piece. About 36 institutional investors were amongst the buyers, with ICICI Prudential being the largest, picking up almost 3.68 crore shares, while Kotak Mahindra Mutual Fund and HDFC Mutual Fund followed, picking up 1.15 crore shares each. Other investors included Abakkus, WhiteOak Capital Mutual Fund, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Life Insurance, and Citigroup.
Following the bulk transaction on Tuesday, July 14, Biocon’s shares rose 6.52% to close at ₹437.30 on the BSE, while it rose 6.34% to settle at ₹437 per share on the NSE.
