Biocon Biologics' Financial Restructuring Wins S&P Upgrade

Biocon Biologics has successfully simplified its capital structure, leading to an upgrade in its ratings by S&P Global. By reducing structured debt liabilities and making strategic equity swaps, the company's financial standing has improved significantly. Revenue growth, particularly in the biosimilars sector, further strengthens its financial outlook.

On Wednesday, S&P Global Ratings upgraded the ratings of Biocon Biologics, citing a stable outlook. This upgrade follows Biocon's successful reduction of its outstanding structured debt liabilities and a simplification of its capital structure.

The company eliminated USD 1 billion in compulsorily convertible preference shares to Viatris, achieving this through a strategic combination of equity share swaps and cash considerations. The cash payout was funded by fresh equity totaling about USD 460 million, which Biocon raised earlier this month, marking its second significant equity issuance since June 2025.

S&P Global Ratings projects Biocon's adjusted debt to decrease to approximately Rs 115 billion by the end of fiscal 2026, down from Rs 248 billion in fiscal 2025. Notably, Biocon's revenue is bolstered by its biosimilars business, which is expected to grow by about 15% in FY27, introducing at least one new product, Denosumab, during this time.

(With inputs from agencies.)