Viatris Inc. VTRS, +4.38%, the company formed by the merger of Mylan and Pfizer Inc. PFE, +3.83% unit Upjohn in 2020, said Monday it has reached an agreement to combine its biosimilars portfolio with Biocon Biologics Ltd. for up to $3.335 billion. The company said the move is the first in a planned series of asset sales that could generate pretax proceeds of up to $6 billion by the end of 2023, as it moves to reshape its business. Under the terms of the deal, Viatris will receive $2 billion in cash upfront, and $1 billion in convertible preferred shares, equal to a stake of at least 12.9% in Biocon Biologics. The deal is expected to close in the second half. “Upon closing, the transaction is expected to provide Viatris with immediate, enhanced financial flexibility, and accelerate its Phase I financial commitments,” the company said in a statement. Biocon will target an initial public offering in India in late 2023. Pennsylvania-based Viatris will have the right to name on director to the Biocon board and will appoint its President, Rajiv Malik, to this seat. The Viatris board has further approved a share buyback program of up to $1 billion. The company expects 2022 revenue to range from $17.0 billion to $17.5 billion, compared with a FactSet consensus for $17.6 billion. Shares jumped 4% premarket on the news but have fallen 2% in the last 12 months, while the S&P 500 SPX, +2.24% has gained 15%.
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