BENGALURU: Biocon Biologics (BBL), a subsidiary of Biocon, will acquire Viatris’ biosimilars business for $3.335 billion, including cash up to $2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at $1 billion. BBL is also planning for an IPO in the next 18-24 months.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Biologics, said, “This acquisition is transformational and will create a unique fully integrated, world leading biosimilars enterprise.” The deal will enable BBL to attain a robust commercial engine in the developed markets of US and Europe, she added. The transaction is expected to close in the second half of 2022, and Viatris will also pay $50 million to BBL to fund certain capital expenditures.
BBL acquires Viatris’ global biosimilars business with an estimated revenue of $875 million and EBITDA of $200 million for CY 2022 and estimated to exceed $1 billion in revenue next year. Arun Chandavarkar, Managing Director, Biocon Biologics, said, “This deal gives BBL full ownership of Viatris’ rights in biosimilars assets, enabling us to recognise combined revenues and profits. Viatris will provide commercial and other transition services to BBL for an expected period of two years.”
“This deal provides several advantages, including strategic agility and operational efficiencies, which will help us mitigate pricing pressures in a competitive global biosimilars landscape,” he added. Combining Viatris’ biosimilars business with BBL accelerates the build out of its commercial capability in developed markets in order to become a strong global brand with a direct presence in US, Europe, Canada, Japan, Australia and New Zealand, the company said. BBL currently has a portfolio of 20 biosimilars.