Viatris Exits Preferred Equity Stake in Biocon Biologics in Major Transaction
The $815 Million Deal, expected to close in Q1 2026, includes revised non-compete terms and allows Viatris to re-enter the global biosimilars sector.
The global healthcare enterprise Viatris has executed definitive agreements for the divestiture of its entire convertible preferred equity holding in Biocon Biologics to Biocon. The transaction has an agreed value of $815 million.
The consideration package for the deal is structured to include $400 million in cash alongside $415 million in newly issued Biocon equity shares. These new shares are slated for listing and trading on the National Stock Exchange of India and will be subject to a six-month lock-up period. The final transaction value will be adjusted based on applicable taxes.
The terms of the agreements also stipulate an accelerated conclusion to the biosimilars non-compete constraints that were initially put in place in 2022, following Viatris’s sale of its biosimilars portfolio to Biocon Biologics. Upon the closing of this new transaction, these restrictions will immediately cease for markets outside of the United States. However, they are set to remain in effect within the US until November 2026.
Scott Smith, the Chief Executive Officer of Viatris, commented that the transaction both monetizes the company’s equity value in Biocon Biologics and secures renewed access to the global biosimilars market. He noted that this provides substantial strategic flexibility as Viatris continues its focus on expanding its portfolio of generics, established brands, and innovative brands to drive future growth.
The completion of the deal is currently anticipated to occur in the first quarter of 2026, contingent upon the satisfaction of all standard closing conditions.
Viatris received financial advisory services from Citi, while legal counsel was provided by Cravath, Swaine & Moore and Khaitan & Co.
Viatris is a global healthcare company with operational hubs in Pittsburgh (US), Hyderabad (India), and Shanghai (China). It supplies a diverse portfolio of generic and branded therapies, reaching billions of patients worldwide annually. In a related development in October 2024, Viatris also entered a licensing pact with Lexicon Pharmaceuticals, securing exclusive rights to commercialize the drug sotagliflozin across all territories outside of the US and Europe.
Source: https://www.pharmaceutical-technology.com/news/viatris-definitive-agreements-biocon/?cf-view
