Viatris Announces $1.2 Billion Sale of Indian Women Health Business

Viatris Announces $1.2 Billion Sale of Indian Women Health Business

03 Oct, 2023

 

Viatris Announces $1.2 Billion Sale of Indian Women Health Business

 

Viatris Inc., born from the 2020 merger between Mylan NV and Pfizer Inc.'s Upjohn unit, is making strategic moves in India, divesting two of its operations for a significant $1.2 billion sum. This initiative aligns with Viatris' global strategy to exit non-core ventures.

The first transaction involved the sale of Viatris' Indian active pharmaceutical ingredients (API) business to IQuest Enterprises, a local pharmaceutical company led by Matrix Laboratories founder Nimmagadda Prasad. Interestingly, this marks Prasad's return to the API industry that he initially sold to Mylan back in 2006. The API division comprises three manufacturing sites and a research lab in Hyderabad, along with three manufacturing sites in Visakhapatnam and third-party API sales. Viatris, however, will maintain some research and development (R&D) capabilities in the API sector.

On the other front, Viatris decided to part ways with its women's healthcare business in India. This segment specializes in manufacturing oral and injectable contraceptives and boasts two manufacturing facilities located in Gujarat (one in Ahmedabad and one in Sarigam).

Both these transactions are currently awaiting regulatory approvals and are anticipated to be completed in the first quarter of 2024.

Viatris has been actively streamlining its operations, with a notable instance being the $3.35 billion sale of its local biosimilar business to Biocon Biologics in February 2022. These moves collectively form part of Viatris' strategy to exit various ventures worldwide, including Europe and India, while unlocking substantial value. The company is keen on using the net proceeds to reduce its debt and reach its gross leverage target of 3x in the first half of 2024.

As Viatris advances into its Phase 2 strategy for 2024 and beyond, it aims to focus on areas with the greatest potential for growth, patient impact, and shareholder value. To facilitate this latest transaction, Viatris received advisory support from global investment bank Jefferies and law firm Saraf and Partners, both of which specialize in pharmaceutical deals.

Viatris is recognized for its off-patent blockbusters like Lipitor (cholesterol treatment), Viagra (erectile dysfunction), and Zoloft (antidepressant). Additionally, the company offers a range of lesser-known over-the-counter products, including dietary supplements, allergy medications, and cosmetics.

 

 


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