Biocon Biologics (BBL), a subsidiary of Indian biopharmaceutical firm Biocon, has reached a definitive agreement to acquire Viatris’ biosimilars business for up to $3.3bn.
The transaction consideration includes an upfront payment of up to $2.3bn in cash, and Compulsorily Convertible Preference Shares (CCPS) in BBL, worth $1bn.
Viatris is a global healthcare company, formed through the merger of Mylan and Pfizer’s business division Upjohn, in November 2020.
Through the deal, BBL will obtain rights to Viatris’ biosimilars business assets, which is estimated to generate $1bn in revenue next year.
Both BBL and Viatris board of directors have approved the acquisition.
Biocon Biologics executive chairperson Kiran Mazumdar-Shaw said: “This acquisition is transformational and will create a unique fully integrated, world-leading biosimilars enterprise.
“Our long-standing global partnership with Viatris has enabled us to achieve many firsts, setting new benchmarks for the global biosimilars industry.
“This strategic combination brings together the complementary capabilities and strengths of both partners and prepares us for the next decade of value creation for all our stakeholders.”
With the acquisition, BBL will benefit from Viatris’ complete portfolio of current commercialised insulins, oncology and immunology biosimilars, along other assets currently under development.
The company is enabled to create a fully integrated global biosimilars enterprise, and advance the commercialisation of its current and future biosimilars portfolio.
In addition, BBL can access the vaccines portfolio through its previously announced partnership with Serum Institute Life Sciences (SILS).
Viatris executive chairman Robert J Coury said: “Our unique collaboration with Biocon began more than a decade ago, even before a biosimilars pathway was defined in most countries.
“During that time, we have experienced many successes, and today is no exception as we join together to create a new, uniquely positioned world-class vertically integrated biosimilars leader.
“This transaction will allow Viatris to continue to participate in the global biosimilars space in a more optimised way, while also allowing us to accelerate our own financial priorities.”
Allegro Capital acted as the financial advisor to BBL on the transaction. Goodwin Procter and Shardul Amarchand Mangaldas served as legal advisors to BBL on the transaction.
