Biocon Biologics to acquire Viatris’ biosimilars assets
India’s Biocon Biologics, a subsidiary of Biocon Ltd, says the acquisition will give it a ‘unique, fully integrated global biosimilars enterprise’. It gains Viatris’ global biosimilars business, whose revenues are estimated to reach $1bn next year, along with its portfolio of in-licensed biosimilar assets.
Viatris will receive up to $2.3bn in cash and and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at $1bn.
Biosimilars partnership
Biocon Biologics and Viatris have been partners in biosimilars for more than a decade: with commercialized biosimilars including Transtuzumab, Pegfilgrastim, Bevacizumab and Adalimumab.
Viatris also has other biosimilars outside the partnership.
Following a strategic review, Viatris has decided to divest assets that are ‘non-core’ to the future of Viatris, with the Biocon Biologics transaction allowing the company to unlock funds for R&D in other areas.
'Transformational' acquisition
The acquisition will give Biocon Biologics a portfolio with its current range of commercialized insulins, oncology and immunology biosimilars as well as several other biosimilar assets currently under development. It also has access to the vaccines portfolio through its previously announced partnership with Serum Institute Life Sciences (SILS).
Biocon says the deal with Viatris provides several advantages: including strategic agility and operational efficiencies to help mitigate pricing pressures in a competitive global biosimilars landscape.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Biologics, said: “This acquisition is transformational and will create a unique fully integrated, world leading biosimilars enterprise. 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 deal will enable Biocon Biologics to attain a robust commercial engine in the developed markets of US and Europe and will fast-track our journey of building a strong global brand.
"It will also make us future-ready for the next wave of products. This development takes our partnership with Viatris to the next level to realize our shared purpose of impacting global health by providing affordable access to high quality essential and life-saving Biosimilar drugs."
Biocon Biologics currently has a portfolio of 20 biosimilars. The acquisition of biosimilars assets of Viatris 'significantly strengthens' its position in diabetes, oncology, immunology and other non-communicable diseases.
By integrating Viatris’ portfolio, Biocon will have 'one of the broadest and deepest commercialised biosimilars portfolio in the industry':
- Comprehensive biosimilar insulins portfolio, including rh-Insulin, bGlargine and bAspart;
- A growing biosimilar oncology portfolio, including bTrastuzumab, bBevacizumab, bPegfilgrastim;
- A significant presence in autoimmune segment through in-licensed products like bAdalimumab, bEtanercept.
Viatris will provide commercial and other transition services to Biocon for the next two years to ensure a seamless transition.
The Board of Directors of both companies have approved the transaction.
