The drugmaker has received offer for its OTC business, and has agreed to divest its women's healthcare business, its API business in India, and commercialisation rights in few non-core markets
Viatris to divest certain businesses through multiple deals. (Credit: Viatris Inc.)
American pharma company Viatris has revealed entering into multiple deals to sell certain businesses for a total consideration of $3.37bn.
Viatris said that it has been issued an offer of around $2.17bn for all of its over-the-counter (OTC) business by France-based Cooper Consumer Health, an OTC drug manufacturer and distributor.
Expected to close in Q2 2024, the deal includes the sale of a research and development (R&D) site located in Monza, Italy and two manufacturing sites in Merignac, France and Confienza, Italy.
Viatris will retain rights and opportunities for Viagra, Dymista, and select OTC products in certain markets.
The drugmaker has also entered into an agreement to divest its active pharmaceutical ingredients (API) business in India to Iquest Enterprises, an Indian pharmaceutical firm.
The deal includes three manufacturing sites in Vizag and third-party API sales, three manufacturing sites, and a R&D lab in Hyderabad. It excludes Viatris’ selective R&D capabilities in API.
Additionally, the US-based company has unveiled plans to offload its women’s healthcare division to Spain-based Insud Pharma. The transaction consists of two manufacturing sites in India.
The deals with Iquest Enterprises and Insud Pharma will have a combined consideration of around $1.2bn.
The pharma company will also sell its rights to women’s healthcare products Duphaston and Femoston to Theramex. The deal is expected to close in Q4 2023.
Viatris CEO Scott Smith said: “I am very excited about today’s announcement as it marks an important milestone in the execution of our overall strategic plan.
“Not only will this bring to conclusion all of our Phase 1 commitments, including the expected achievement of our deleveraging target of 3 times gross leverage in the first half of 2024, importantly it will also set the Company up extremely well as we enter into our Phase 2 strategy for 2024 and beyond.”
Viatris intends to simplify the organisation with the divestments and use the net proceeds for debt paydown.
These planned divestitures are anticipated to close by the end of the first half of next year, subject to regulatory approvals, consultations, and other closing conditions.