Biocon acquires Viatris's biosimilars business for $3.33 billion

New Delhi: In one of the largest deals in the pharma and healthcare space, Bengaluru-based Biocon Biologics Limited (BBL) on Monday said its subsidiary Biocon Biologics will acquire Viatris Inc's biosimilars business for up to $3.33 billion (Rs24,990 crore). Biocon Biologics has entered into a definitive agreement with Viatris Inc to acquire its biosimilars business to create a fully integrated global biosimilars enterprise, Biocon Ltd said in a statement.

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."

Viatris Executive Chairman Robert J Coury adds: "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."

Viatris will receive consideration of up to $3.335 billion, including cash up to $2.335 billion and compulsorily convertible preference shares (CCPS) in Biocon Biologics Ltd, valued at $1 billion, it added. Biocon said Viatris will receive cash consideration of $2 billion on the closing of the transaction and up to $335 million as additional payments expected to be paid in 2024. Additionally, upon closing of the transaction, Biocon Biologics will issue $1 billion of CCPS to Viatris, equivalent to an equity stake of at least 12.9 per cent in the company, on a fully diluted basis. As part of the deal, Biocon Biologics will gain Viatris' global biosimilars business whose revenues are estimated to be $1 billion next year, along with its portfolio of in-licensed biosimilar assets. The acquisition will help the company get a comprehensive portfolio, comprising its current range of commercialised insulins, oncology and immunology biosimilars as well as several other biosimilar assets under development.

Biocon Biologics, which currently has a portfolio of 20 biosimilars, will also have access to the vaccine portfolio through its previously announced partnership with Serum Institute Life Sciences (SILS).The Board of Directors of both the companies have approved the transaction and the deal is expected to close in the second half of the year.

The deal will enable Biocon Biologics to attain a robust commercial engine in the developed markets of the US and Europe and fast-track Biocon's journey of building a strong global brand, she added. "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 realise our shared purpose of impacting global health by providing affordable access to high-quality essential and life-saving Biosimilar drugs," Mazumdar-Shaw noted.