Viatris sells global biosimilars business to Biocon Biologics for USD 3 billion
The acquisition provides Biocon Biologics with direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets.
Bengaluru: Biocon Biologics Ltd., a subsidiary of Biocon Ltd., has recently announced that it has successfully completed the acquisition of the global biosimilars business of its partner Viatris Inc. for USD 3 billion.
Biocon Biologics and Viatris have obtained all applicable approvals from key global regulators including the U.S. Federal Trade Commission, the Competition Commission of India and the Reserve Bank of India, and its investors. Effective from the date of closing, Biocon Biologics will recognize the combined revenue and associated profits from the acquired products, a step up from the existing profit share arrangement.
The acquisition provides Biocon Biologics with direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets.
With the closing of the deal, Biocon Biologics has full ownership of its collaboration assets, bTrastuzumab, bPegfilgrastim, bBevacizumab, bGlargine, bAspart, bPertuzumab, and bGlargine 300U, as well as Viatris' rights for the in-licensed immunology products of bAdalimumab and bEtanercept.
Biocon Biologics has also acquired Viatris' rights for bAflibercept, which is used to treat several ophthalmology conditions. Viatris has been the 'first to file' bAflibercept in the U.S. Biocon Biologics has a unique portfolio of 20 biosimilar assets, including insulins and monoclonal antibodies spanning therapy areas such as diabetes, oncology, immunology, and ophthalmology.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Biologics, said, "The completion of the acquisition of Viatris' global biosimilars business is a historic inflection point in Biocon Biologics' journey of becoming a world-leading, fully integrated biosimilars enterprise, committed to serve patients' needs for affordable access to essential biomedicines. It will fast-track our direct entry into several advanced and emerging markets. This acquisition builds on our decade-long partnership and will enable us to realize our vision of addressing global health inequities. I believe this move will strengthen our value proposition to deliver long-term value to Biocon and Biocon Biologics shareholders." "To ensure seamless continuity of services to patients and customers, Viatris will continue to work with our teams for a transition period of up to two years. I would like to thank the teams at both Biocon Biologics and Viatris that have worked together to address regulatory and statutory requirements to enable deal closure," she added.
Robert J. Coury, Viatris' Executive Chairman, said: "I am extremely pleased to have reached this monumental moment for Biocon Biologics. As a significant shareholder in Biocon Biologics, we are committed to ensuring the long-term success of the company and maximizing the value of what we are building together – a new world-class, fully integrated biosimilars leader."
As a part of completing the transaction, Biocon Biologics has issued Compulsorily Convertible Preference Shares (CCPS) in the Company valued at USD 1 billion, equivalent to an equity stake of at least 12.9% on a fully diluted basis, and made an upfront cash payment of USD 2 billion to Viatris. To fund the upfront payment, Biocon Biologics has secured USD 1.2 billion of Sustainability Linked Loan (SLL). The balance has been funded through an equity infusion of USD 650 million by Biocon Limited and USD 150 million by Serum Institute Life Sciences (SILS). Biocon Limited's funding comprises USD 230 million from existing reserves and USD 420 million through mezzanine financing. Biocon is in the process of securing investments to retire the mezzanine financing, post deal closure. Post conclusion of the Viatris and Serum transactions, Biocon Limited's stake in Biocon Biologics will be 68%
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