Biocon subsidiary Biocon Biologics Ltd (BBL) has entered into a definitive agreement with its partner Viatris Inc to acquire Viatris’ biosimilars business for $3.34 billion.
Kiran Mazumdar Shaw, executive chairperson of Biocon Biologics on Monday said BBL has entered into an agreement with Viatris to acquire its biosimilars business for $3.34 billion, which would include cash of up to $2.34 billion and Compulsorily Convertible Preference Shares (CCPS) in BBL valued $1 billion.
“This acquisition is transformational and will create a unique fully integrated, global biosimilars enterprise. The deal will enable Biocon Biologics to attain a robust commercial engine in the developed markets of US & Europe and will fast-track our journey of building a strong global brand,’‘ she said.
Viatris would receive cash of $2 billion upon closing the deal and up to $335 million as additional payments in 2024. BBL would also issue CCPS worth $1 billion to Viatris.
The deal has been approved by the boards of both companies while the transaction is likely to be completed in the second half of 2022, as per BBL.
Viatris President Rajiv Malik would now serve on the board of Biocon, while Mazumdar-Shaw would continue as the Executive Chairperson of BBL.