03 March 2022 | Thursday | News
Biocon Biologics Ltd., a subsidiary of Biocon Ltd. (BSE: 532523) (NSE: BIOCON), has entered into a definitive agreement with its partner Viatris Inc. (NASDAQ: VTRS). As a result, Biocon Biologics Ltd. (BBL) will acquire Viatris' biosimilars business to create a single, fully integrated global biosimilars company. It is estimated that the revenue from this acquired business will be US$1 billion next year. Viatris will receive consideration of up to US$3.335 billion in cash and shares.
BBL will acquire Viatris' global biosimilar business as well as its rights to the licensed portfolio. BBL will realize all the revenues and profits of the acquired business, expanding the basis of its EBITDA and strengthening all financial data, thus enabling investments for long-term sustainable growth. BBL has a portfolio of 20 biosimilars and with this integration, it will become a global player in biosimilars with one of the broadest and strongest pipelines in the industry.
This acquisition will accelerate BBL's direct commercialization strategy for its portfolio of current and future biosimilars by providing a direct presence in the United States, Europe, Canada, Japan, Australia and New Zealand.
Kiran Mazumdar-Shaw, Executive Chairman of Biocon Biologics, said: "This acquisition is transformational and will create a unique, fully integrated, world-class biosimilars company. Our long-standing global partnership with Viatris has enabled us to achieve many firsts, setting new benchmarks for the global biosimilars industry. This strategic combination brings together the complementary capabilities and strengths of both partners and prepares us for the next decade of value creation for all our stakeholders. »
"The agreement will enable BBL to achieve a robust business engine in the developed markets of the U.S. and Europe, and accelerate our journey to build a strong global brand. It will also prepare us for the next wave of products. This development takes our partnership with Viatris to the next level to achieve our shared goal of impacting global health by providing affordable access to high-quality, essential and life-saving biosimilars," she added.
Robert J. Coury, Executive Chairman of Viatris, said: "Our unique collaboration with Biocon began more than a decade ago, even before a pathway for biosimilars was defined in most countries. During this time, we have enjoyed many successes and today is no exception, as we unite to create a new world-class global leader in vertically integrated biosimilars. This transaction will allow Viatris to continue to participate in the global biosimilar space in a more optimized manner, while allowing us to accelerate our own financial priorities. »
The transaction, which is expected to close in the second half of 2022, will have flow-through value for Biocon and BBL shareholders.
Kiran Mazumdar-Shaw will remain Executive Chairman of BBL; Viatris will appoint Rajiv Malik, Chairman of Viatris, to sit on BBL's Board of Directors.