Latest News

Viatris to contribute its biosimilars portfolio to Biocon Biologics for up to $3.335 billion, shares jump 4% premarket

0

Viatris Inc.
VTRS,
+4.38%
,
the company formed by the merger of Mylan and Pfizer Inc.
PFE,
+3.83%

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
SPX,
+2.24%

has gained 15%.

Corporate America condemns Russia — what that means for stock market: Morning Brief

Previous article

Plunging ruble sends Russians scrambling to withdraw their cash from banks

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News