Biocon subsidiary completes acquisition of Viatris for USD 3 billion

Bengaluru (Karnataka) [India], November 29 : Biocon Biologics, a subsidiary of listed biopharmaceutical company Biocon Ltd, on Tuesday announced that it has successfully completed its acquisition of the global biosimilars business of its partner Viatris for USD 3 billion.
According to a statement by the pharma company, Biocon Biologics and Viatris have completed the multi-billion-dollar, value-accretive transaction in part equity and part cash, including an upfront cash payment of USD 2 billion and issuance of Compulsorily Convertible Preference Shares (CCPS) worth USD 1 billion.
Both have obtained all applicable approvals from critical global regulators including the US Federal Trade Commission, the Competition Commission of India and the Reserve Bank of India, and its investors, respectively.
Biocon Limited is an innovation-led global biopharmaceuticals company committed to enhancing affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune.
This multi-billion dollar acquisition will provide Biocon Biologics with direct commercial capabilities and supporting infrastructure in advanced and emerging markets.
Biocon Biologics has a unique portfolio of 20 biosimilar assets, including insulins and monoclonal antibodies spanning therapy areas such as diabetes, oncology, immunology and ophthalmology, the statement added.
Kiran Mazumdar Shaw, the Executive Chairperson of Biocon Biologics, said, "The completion of the acquisition of Viatris' global biosimilars business is a historic inflexion point in Biocon Biologics' journey of becoming a world-leading, fully integrated biosimilars enterprise, committed to serving patients' needs for affordable access to essential biomedicines. It will fast-track our direct entry into several advanced and emerging markets. This acquisition builds on our decade-long partnership and will enable us to realize our vision of addressing global health inequities. I believe this move will strengthen our value proposition to deliver long-term value to Biocon and Biocon Biologics shareholders."
She further said that to ensure the seamless continuity of services to patients and customers, Viatris will continue to work with the teams for a transition period of up to two years. Shaw thanked the teams at both Biocon Biologics and Viatris that have worked together to address the regulatory and statutory requirements to enable deal closure.
As a part of completing the transaction, Biocon Biologics has issued Compulsorily Convertible Preference Shares (CCPS) in the company valued at USD 1 billion, equivalent to an equity stake of at least 12.9 per cent on a fully diluted basis, and made an upfront cash payment of USD 2 billion to Viatris.
To fund the upfront payment, Biocon Biologics has secured USD 1.2 billion of Sustainability Linked Loan (SLL). The balance has been funded through an equity infusion of USD 650 million by Biocon Limited and USD 150 million by Serum Institute Life Sciences (SILS). Biocon Limited's funding comprises USD 230 million from existing reserves and USD 420 million through mezzanine financing. Biocon is in the process of securing investments to retire the mezzanine financing, post-deal closure.
Post conclusion of the Viatris and Serum transactions, Biocon Limited's stake in Biocon Biologics will be 68 per cent.