In order to develop and commercialize a brand portfolio of biosimilar and insulin products such as human insulin, insulin glargine, Biocon and Viatris have partnered.
On Monday, Biocon Biologics Ltd (BBL) said it has entered into an official agreement to acquire Viatris’ biosimilars assets for $3.34 billion. Out of the said $3.34 billion, BBL will divide the payment into two parts; it will pay up to $2.34 billion in cash and the remaining $1 billion through Compulsorily Convertible Preference Shares (CCPS) in BBL for an equity stake of at least 12.9% in the company.
The transaction is expected to wind up in the second half of 2022. The existing investors of BBL include True North, Tata Capital Growth Fund, Abu Dabi based ADQ and Goldman Sachs. At the same time, Kiran Mazumdar Shaw continues to be the executive chairperson of BBL and Rajiv Malik, president of Viatris, will join the BBL board.
“BBL has received interested expressions from financial institutions for debt financing and equity commitments from existing shareholders,” BBL added.
BBL will get Viatris’ global commercial infrastructure in developed and emerging markets, according to the deal. For the calendar year 2022, Viatris’ global biosimilars business has an estimated revenue of $875 million and EBITDA of $200 million, which is expected to exceed $1 billion in revenue in the next year.
Viatris’ rights in all the biosimilars assets, including its in-licensed portfolio and an option to acquire Viatris’ rights in biosimilar Aflibercept, used to treat wet macular degeneration.
Viatris will pay $50 million to BBl to fund specific capital expenditures. Viatris will also pay the transition services for an expected period of two years to ensure a seamless transition with partners and continued assistance to customers and patients.
Biocon and Viatris, formerly known as Mylan, have partnered to develop and commercialize a broad portfolio of biosimilar and insulin products. In the rest of the world, Biocon has co-exclusive commercialization rights with Viatris.
Biocon develops and manufactures the drug, whereas Viatris takes care of regulatory approvals and commercialization of products in the highly regulated markets, I.e., the US, Canada, Australia, New Zealand, EU and Japan.
Mazumdar Shaw further said, “This acquisition is transformational and will create a unique, fully integrated, world-leading biosimilars enterprise. The deal will enable BBL to attain a robust commercial engine in the developed markets of the US and Europe and will fast track our journey of building a strong global brand. It will also make us future-ready for the next wave of products.”
Viatris’ executive chairman, Robert J. Coury, said, “This transaction will allow Viatris to continue to participate in the global biosimilars space in a more optimized way, while also allowing us to accelerate our own financial priorities.”
Edited by: Mahi Gupta
Published by: Vishakha Verma
