BBL to Take Over Biosimilars Business from Viatris 

Biocon Biologics Limited (BBL) announced its deal with Viatris Inc to acquire its biosimilars business. BBL, a subsidiary of Biocon Ltd has inked a agreement with global healthcare company, Viatris Inc., for a stock and cash deal, valued at $3.335billion. 

With this transaction, BBL, based in Bengaluru, India is looking to consolidate its hold on the global biosimilars market including its current range of insulins, and biosimilars for oncology and immunology. With an estimated revenue of $1 billion for 2022 and a robust portfolio of licensed biosimilar assets, Viatris will receive up to $2.335 billion in cash and stock options worth $1 billion, equivalent to 12.9% stake in the company. The deal is financed by $800 million raised by equity infusion in BBL and remainder by debt, additional equity etc. 

Viatris Inc, headquartered in Pittsburgh, Pennsylvania, will continue to provide commercial and transition services for upto two years with Viatris President, Rajiv Malik selected to the BBL board and Dr. Kiran Mazumdar Shaw continuing as the Executive Chairperson of BBL. 

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BBL Secures Full Ownership of Viatris’ Biosimilars

According to Biocon Biologics Managing Director Arun Chandavarkar,  the deal gives BBL full ownership of Viatris’ rights in biosimilars assets, enabling it to recognise combined revenues and profits. “This deal provides several advantages, including strategic agility and operational efficiencies, which will help us mitigate pricing pressures in a competitive global biosimilars landscape. We remain committed to sustainable growth with a strong financial profile, expanded geographical reach and continued investments in R&D to build a world-leading biosimilars franchise,” he added.

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.”

Viatris Executive Chairman Robert J Coury noted, “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”.

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Author

Sahana Shankar