Viatris-owned Mylan has successfully completed its ₹3,481 crore ($363 million) block deal to sell its entire 5.64% stake in Biocon, marking a complete exit from the biotechnology major after a 17-year partnership. The transaction involved selling up to 9.2 crore shares in the Indian drugmaker through a secondary offering, meaning the shares are being sold by an existing investor and Biocon will not receive the proceeds. The floor price for the transaction was fixed at ₹378.50 per share, representing an 8% discount to Biocon's previous closing price, though the shares were ultimately exchanged at an average price of around ₹400 per share during the block deal window. This represents a significant escalation from the initial plan to sell only part of the stake, now moving toward a complete divestment. The transaction was executed within the expected seven to eight days timeline, with the size, pricing and buyers for the proposed stake sale having been determined in advance. According to Reuters, Citigroup Global Markets India and Jefferies India were the joint bookrunners and brokers for the deal.
Biocon shares have surged 6.5% to ₹437.30 following reports of the Mylan block deal, with analysts describing the move as removing a long-standing overhang on the stock. The stock has demonstrated remarkable momentum with a 7% gain in the past week and 4% over the month, while showing a more than 12% year-to-date gain. This represents a significant escalation from the previous session's gains, with the stock demonstrating strong momentum throughout the trading session. The positive market reaction reflects investor confidence in Biocon's fundamentals and growth prospects, with the stock showing remarkable performance despite the sizeable stake sale. The successful completion of the block deal appears to have eased concerns over a large shareholder exit, prompting investors to bid up the stock despite the substantial trading volumes. According to The Financial Express, trading volume skyrocketed 180 times today compared to the one-month average of 42 lakh shares, with the company's total trading volume reaching 8 crore shares on NSE and BSE combined.
The block deal attracted significant participation from both domestic and global institutional investors, with 36 investors participating in the transaction. ICICI Prudential Mutual Fund emerged as the largest buyer, acquiring 3.68 crore equity shares (2.26% stake) for ₹1,475 crore. Other major domestic participants included Kotak Mahindra Mutual Fund and HDFC Mutual Fund, each acquiring 1.15 crore shares (0.71% stake) for ₹463.82 crore. Notable domestic investors included Abakkus, WhiteOak Capital Mutual Fund, Aditya Birla Sun Life MF, Axis Mutual Fund, SBI Mutual Fund, Franklin Templeton MF, HDFC Life Insurance Company, ICICI Prudential Life Insurance, Mirae Asset MF, and Motilal Oswal AMC. Global investors like Citigroup, Eastspring Investments, Goldman Sachs, Morgan Stanley, Societe Generale, and Vanguard Emerging Markets also participated in the block deals, demonstrating strong institutional confidence in Biocon's prospects.
Mylan partnered with Biocon in 2009 to develop and commercialise biosimilars, later expanding the alliance to generic insulin analogues. It became a Biocon shareholder in January 2026 after Biocon issued shares as part of the acquisition of Viatris's stake in Biocon Biologics. The latest block deal would bring Mylan's association with Biocon to an end after 17 years of partnership. At the end of the March quarter, Biocon's shareholding pattern shows promoters holding a 44.68% stake in the company, while public shareholders account for the remaining 55.32%. Among public shareholders, mutual funds hold a 15.49% stake, foreign portfolio investors have an 8.16% stake, and retail shareholders with authorized share capital of up to ₹2 lakh hold a 5.78% stake. The substantial retail participation and diverse institutional ownership provide stability to Biocon's shareholding structure despite the significant stake sale.
Biocon reported mixed financial results for Q4 FY26, with consolidated net profit declining 63% to ₹126 crore in the fourth quarter of the 2025-26 financial year, hit by an exceptional item outgo of ₹80.4 crore on various heads, including the impact of the new labour code. However, net profit before exceptional items surged 64% YoY to ₹179 crore, indicating strong underlying business performance. The company had posted a consolidated net profit of ₹459 crore in the corresponding period of the previous fiscal. Revenue from operations remained stable at ₹4,517 crore compared to ₹4,417 crore in the year-ago period, showing 10% year-on-year growth. On a consolidated basis, the company's net profit declined significantly, though the revenue growth indicates operational resilience. Biocon Executive Chairperson Kiran Mazumdar-Shaw noted that "Biocon closed FY26 on a strong note despite a complex geopolitical environment. We delivered margin expansion along with 13 per cent y-o-y growth in operating revenue, excluding the one-time impact of generic lenalidomide sales last year."
In a significant development for Biocon's international operations, the company announced that its long-standing partner Duopharma Biotech Berhad has secured multiple insulin contracts from the Ministry of Health, Malaysia. As part of these contracts, Biocon's subsidiary, Biocon Sdn. Bhd., Malaysia, will supply short-acting recombinant human insulin, insulin glargine and insulin aspart to Duopharma (M) Sendirian Berhad for distribution. The contracts comprise a three-year agreement valued at approximately MYR 155.27 million for human insulin, along with two 2-year agreements comprising approximately MYR 18 million for insulin glargine and about MYR 52.5 million for insulin aspart. According to the regulatory filing dated June 24, 2026, both companies are committed to helping patients with diabetes achieve better healthcare outcomes by ensuring a steady and accessible medicine supply, in line with policies indicated in the 13th Malaysia Plan and the New Industrial Master Plan 2030.
