Tue Mar 1

Biocon Biologics to Acquire Viatris' Biosimilars Assets for up to USD 3.335 billion in Stock and Cash

Written by PR Newswire Asia - Daily Bulletin Au RSS

BENGALURU, India, Feb. 28, 2022 /PRNewswire/ -- Biocon Biologics Ltd., a subsidiary of Biocon Ltd. (BSE code: 532523) (NSE: BIOCON), has entered into a definitive agreement with its partner Viatris Inc. (NASDAQ: VTRS). Accordingly, Biocon Biologics Ltd. (BBL) will acquire Viatris' biosimilars business to create a unique fully integrated global biosimilars enterprise. The revenues of this acquired business are estimated to be USD 1 billion next year. Viatris will receive consideration of up to USD 3.335 billion in cash and stock.

BBL will acquire Viatris' global biosimilars business along with its rights for the in-licensed portfolio. BBL will realize full revenues and profits from the acquired business, expanding its EBITDA base and strengthening overall financials, thus enabling investments for sustained long-term growth. BBL has a portfolio of 20 biosimilars, and with this integration it will become a world leading biosimilars player with one of the broadest and deepest pipelines in the industry.

This acquisition will accelerate BBL's direct commercialization strategy for its current and future biosimilars portfolio by providing a direct presence in U.S., Europe, Canada, Japan, Australia and New Zealand.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Biologics, 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."

"The deal will enable BBL to attain a robust commercial engine in the developed markets of U.S. & 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. This development takes our partnership with Viatris to the next level to realize our shared purpose of impacting global health by providing affordable access to high quality essential and life-saving Biosimilar drugs," she added.

Robert J. Coury, Viatris' Executive Chairman 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 optimized way, while also allowing us to accelerate our own financial priorities."

The transaction, which is expected to close in H2-2022, will be value accretive to Biocon and BBL shareholders.

Kiran Mazumdar-Shaw will continue as Executive Chairperson of BBL; Viatris to designate Rajiv Malik, President of Viatris, to serve on BBL Board.