Biocon is reportedly in talks with global pharmaceuticals giant Mylan to merge their biosimilar businesses. The biosimilar business of the company is operated by subsidiary Biocon Biologics.

A Moneycontrol report said Biocon would hold a majority stake in the merged entity, and the duo would look at an initial public offering (IPO) for their joint business at a valuation of over $10 billion. A biosimilar is almost identical to a biologic drug, which is extracted from plants, animal cells and micro-organisms.

Biocon Biologics earned Rs 743 crore from the biosimilar business in the second quarter of the fiscal which is 40 per cent of Biocon’s revenues for the period at Rs 1,840 crore.

In the first half of the fiscal, revenues of the biologics arm rose 10 per cent to Rs 1,501 crore over the same period last year as the company made inroads both in the developed and in the emerging markets, with margins at 42 per cent.

Spokespersons for Biocon and Viatris Inc, which was formed after the merger of Mylan and Pfizer’s Upjohn unit, said they would not comment on market speculation.

DRL pact

Singapore-based Prestige BioPharma and Dr Reddy’s Laboratories on Thursday announced a binding agreement for the supply and commercialisation of the former’s proposed Trastuzumab biosimilar in select countries in Latin America and Southeast Asia.