Mumbai: Drugmaker Viatris Inc., formerly Mylan Inc., has divested two of its businesses in India, as part of a global exercise exit non-core ventures. Along with its active pharmaceutical ingredient (API) operations, the US-based pharmaceutical major has also decided to sell its women’s healthcare business, which it acquired from Famy Care.
The total consideration for these divestments amounts to $1.2 billion, according to a press statement.
As per the deal, the company has decided to sell its API business in India to IQuest Enterprises, a homegrown pharmaceutical company owned by Nimmagadda Prasad, the founder of Matrix Laboratories. “The transaction includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris will retain some selective R&D capabilities in API,” the release said.
Viatris was formed in November 2020 via the merger of Mylan and Pfizer Inc.’s Upjohn.
Its women’s healthcare business, which primarily specializes in oral and injectable contraceptives, has been sold to Insud Pharma, a Spanish pharmaceutical enterprise. The transaction includes two manufacturing facilities in India: one in Ahmedabad and one in Sarigam.
Mylan acquired Famy Care from the Mumbai-based Taparia family in 2015 in an all-cash transaction worth $800 million.
On 8 November, Mint was the first report on the company’s plans to sell its women’s healthcare business.
The transactions, subject to regulatory approval, are expected to close in the first quarter of 2024.
Viatris had announced its global divestment plan across Europe and other markets including India. As part of the plan, in February 2022, the company had announced the sale of its biosimilar business to India-based Biocon Biologics for $3.35 billion in a cash and stock deal.
At that time, the company had said that it had identified non-core opportunities including the Biocon Biologics deal that could generate the company around $9 billion in pre-tax proceeds.
“Completion of divestitures will bring successful conclusion to all phase-1 efforts and commitments, including prioritizing use of net proceeds for debt paydown to reach gross leverage target of 3.0x in the first half of 2024,” the company said while announcing the latest transactions. “It will also set the company up extremely well as we enter into our phase 2 strategy for 2024 and beyond.”
Viatris said it has achieved its goal of substantially simplifying the organization as it increases focus on areas with the greatest potential to accelerate growth, patient impact and shareholder value.
Global investment bank Jefferies, and law firm Saraf & Partners acted as advisors to the company, the release said.
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Updated: 02 Oct 2023, 06:24 PM IST
