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Biocon Biologics Ltd, a subsidiary of listed biopharmaceutical company Biocon Ltd, on Tuesday announced the completion of its acquisition of global biosimilars business of its partner Nasdaq listed Viatris Inc.

Biocon Biologics and Viatris have obtained all applicable approvals from key global regulators, including the US Federal Trade Commission, the Competition Commission of India, the Reserve Bank of India, and its investors, a company statement said.

The acquisition provides Biocon Biologics with direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets, bringing it closer to patients, customers and payors, the company said.

With this acquisition, Biocon Biologics emerges as a world-leading biosimilars player with eight commercialised products.

"The completion of the acquisition of Viatris' global biosimilars business is a historic inflection point in Biocon Biologics' journey of becoming a world leading, fully integrated biosimilars enterprise," said Kiran Mazumdar Shaw, Executive Chairperson, Biocon Biologics.

As part of completing the transaction, Biocon Biologics has issued Compulsorily Convertible Preference Shares (CCPS) in the company valued at $1 billion, equivalent to an equity stake of at least 12.9 per cent on a fully diluted basis, and made an up front cash payment of $2 billion to Viatris.

To fund the up front payment, Biocon Biologics has secured $1.2 billion of Sustainability Linked Loan (SLL). The balance has been funded through an equity infusion of $ 650 million by Biocon Limited and $150 million by Serum Institute Life Sciences (SILS).

Biocon Limited's funding comprises $230 million from existing reserves and $420 million through mezzanine financing.

Biocon is in the process of securing investments to retire the mezzanine financing post deal closure, the statement added.

Post conclusion of the Viatris and Serum transactions, Biocon Limited's stake in Biocon Biologics will be 68 per cent.

Rajiv Malik, President of Viatris, has joined the Board of Directors of Biocon Biologics, effective November 29.

Shaw will continue as the Executive Chairperson of Biocon Biologics Ltd.