Viatris, formerly known as Mylan Inc., has recently finalized two significant deals in India as part of its global divestiture strategy, generating a combined consideration of approximately $1.2 billion. This move is aimed at reducing the company’s debt burden.
The first deal involves the divestment of Viatris’ Active Pharmaceutical Ingredients (API) business in India to Iquest Enterprises, a privately held pharmaceutical company based in Hyderabad. This transaction includes three manufacturing facilities and a research and development (R&D) laboratory in Hyderabad, as well as three manufacturing sites in Vizag and third-party API sales. Viatris will retain certain selective R&D capabilities within the API sector.
The second transaction involves the sale of Viatris’ women’s healthcare business, primarily focused on oral and injectable contraceptives, to Insud Pharma, a prominent Spanish multinational pharmaceutical company. This deal includes two manufacturing facilities located in India, one in Ahmedabad and the other in Sarigam. Both of these deals are expected to be completed in the first quarter of 2024, according to Viatris’ official statement. Jefferies and the law firm Saraf & Partners acted as advisors for these transactions.
In accordance with its commitment to announce agreements on all planned divestitures by the end of 2023, Viatris has now achieved this goal within the company’s previously communicated range, considering the estimated retained value.
Taking into account the gross proceeds from Viatris’ completed biosimilars divestiture, the company anticipates realizing gross proceeds representing a multiple above 12 times the 2022 estimated adjusted EBITDA for its portfolio of divested assets. In total, the gross proceeds for Viatris from all divestitures under these agreements amount to up to $6.94 billion, or approximately $5.2 billion in estimated aggregate net proceeds, after accounting for taxes, other costs, and related transaction expenses.