the company formed by the merger of Mylan and Pfizer Inc.
unit Upjohn in 2020, said Monday it has reached an agreement to combine its biosimilars portfolio with Biocon Biologics Ltd. for up to $3.335 billion. The company said the move is the first in a planned series of asset sales that could generate pretax proceeds of up to $6 billion by the end of 2023, as it moves to reshape its business. Under the terms of the deal, Viatris will receive $2 billion in cash upfront, and $1 billion in convertible preferred shares, equal to a stake of at least 12.9% in Biocon Biologics. The deal is expected to close in the second half. “Upon closing, the transaction is expected to provide Viatris with immediate, enhanced financial flexibility, and accelerate its Phase I financial commitments,” the company said in a statement. Biocon will target an initial public offering in India in late 2023. Pennsylvania-based Viatris will have the right to name on director to the Biocon board and will appoint its President, Rajiv Malik, to this seat. The Viatris board has further approved a share buyback program of up to $1 billion. The company expects 2022 revenue to range from $17.0 billion to $17.5 billion, compared with a FactSet consensus for $17.6 billion. Shares jumped 4% premarket on the news but have fallen 2% in the last 12 months, while the S&P 500
has gained 15%.