Biocon Biologics announced on Tuesday that it has successfully completed the acquisition of its partner Viatris Inc. and its multibillion-dollar (USD) global biosimilar business.
According to a company statement, both companies have received all relevant approvals from major global authorities, and regulatory authorities, including the US Federal Trade Commission, the Competition Commission of India, the Reserve Bank of India, and its investors.
The acquisition provides Biocon Biologics with direct business opportunities and support infrastructure in developed markets and several emerging markets, bringing it closer to patients, customers, and payers.
From the balance sheet date, Biocon Biologics recognizes the combined revenue and related profit of the acquired products, which is a step forward from the current profit-sharing arrangement.
The integration of the acquired global biosimilar business from Viatris with Biocon Biologics’ existing research and development, global manufacturing, and distribution capabilities in multiple emerging markets will make Biocon Biologics a unique, fully integrated, leading global biosimilar company with a strong product offering equal access to high-quality, life-saving biosimilars for patients around the world. With this acquisition, Biocon Biologics becomes the world’s leading biosimilar company, with eight products on the market.
Upon completion of the transaction, Biocon Biologics will acquire the rights to its collaborative assets: bTrastuzumab, bPegfilgrastim, bBevatsizumab, bGlargine, bAspart, bPertuzumab, and bGlargine 300U, as well as Viatris’ rights to bAlicalimumab-immunoalimulimumab, bAlicalimuma, and b Biocon Biologics also acquired Viatris’ rights to bAflibercept, which is used to treat several eye diseases. Viatris was the “first” bAflibercept to be introduced in the US.
With this acquisition, Biocon Biologics emerges as a world-leading biosimilar player. “The completion of the acquisition of Viatris’ global biosimilars business is a historic inflection 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.”
Kiran Mazumdar-Shaw Executive Chairperson, Biocon Ltd.
As part of the closing of the transaction, Biocon Biologics issued $1 billion of company-mandated convertible preferred stock (CCPS), which is equivalent to at least 12.9% equity (on a fully diluted basis) and made an advance payment of $2 billion to Viatris.
Viatris CEO Rajiv Malik joined the board of Biocon Biologics Ltd. effective November 29, 2022.
Leave a Reply