There was an incremental downside on Biocon once the analyst call took place at 9 am on Monday morning.
A couple of key concerns that have been brought up with regards to the Biocon-Viatris deal includes the fact regarding valuation; they have paid around 16.7 times EV/EBITDA CY22 estimated and this is versus valuations of 6-7 times for Viatris.
One of the key concerns is debt, the company will be taking on debt of around $1.2 billion on account of this transaction. So the total debt on books will rise to around $1.5 billion because they have $300 million of debt on their books already.
The company said that they have the ability to support and finance debt, as per analysts, and the net debt to EBITDA will eventually look to be brought down below three times.
For more details, watch the accompanying video of CNBC-TV18’s Ekta Batra.