Biocon Limited (NSEI:BIOCON) is evaluating a plan to sell its generic active pharmaceutical ingredient (API) business ? estimated to be worth $1.5 billion ? to reduce its overall debt, though it is yet to take any concrete action, people familiar with the matter told ET.

?Discussions with investment banks have taken place but the plan (for sale of generic API business) is still on the drawing board,? one of the sources said. The generic API business, which was once Biocon?s mainstay, has seen its contributions to the firm?s consolidated financials fall over the years as the company has moved strategically towards its ambition of becoming a global biosimilars major.

Biosimilars contributed nearly 50% of Biocon?s topline of INR 115,500 million for 2022-23. The Kiran Mazumdar-Shaw helmed company made a huge bet on biosimilars by acquiring a portfolio of drugs from global drug major Viatris for $3.34 billion in November last year. That deal was funded by debt taken both by Biocon Ltd. and its biosimilars arm Biocon Biologics Limited.

Biocon Biologics took loans of $1.2 billion to fund the acquisition. The company has also sold some stake in Syngene to finance the acquisition of Viatris? biosimilar assets, a person familiar with Biocon?s thinking said.

?At a mature stage of her (Mazumdar-Shaw?s) entrepreneurial journey, she has decided to make a big push into biosimilars and made a heavy investment,? the person said. ?The company has taken on debt.

Any move to hive off the API business will be seen as credit positive.? Biocon dismissed ET?s queries about the sale plans for the API business. ?Biocon would not like to comment on baseless rumours and market speculation,?

a company spokesperson told ET in an emailed response.