Biocon Biologics Ltd. (BBL) has successfully completed its multi-billion dollar acquisition of the global biosimilars business of its partner Viatris Inc.
This acquisition builds on Biocon’s long-standing, strategic partnership with Viatris and is a historic milestone in Biocon Biologics’ value creation journey.
This acquisition strengthens Biocon Biologics’ commitment to expand affordable access to lifesaving biosimilars worldwide, thus addressing global health inequities.
This acquisition provides Biocon Biologics direct commercial presence in advanced markets as well as several emerging markets.
The integration of Viatris’ direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets complements Biocon Biologics’ existing capabilities in R&D and global scale manufacturing of biosimilars.
Biocon Biologics will recognize the combined revenue & associated profits from the acquired collaboration biosimilars with immediate effect, a step-up from the existing profit share arrangement.
This acquisition will bring Biocon Biologics closer to patients, customers, and payors in the advanced markets and several emerging markets.
An ‘end to end’ integrated biosimilars organization, Biocon Biologics aspires to expand access and enhance the quality of experience of customers, partners and patients.
“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 serve 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 a part of completing the transaction, Biocon Biologics has issued Compulsorily Convertible Preference Shares (CCPS) in the Company valued at USD 1 billion, equivalent to an equity stake of at least 12.9% on a fully diluted basis, and made an upfront cash payment of USD 2 billion to Viatris.
To ensure seamless business continuity and allow for a gradual integration of people and business activities, Viatris will provide commercial and other transition services to Biocon Biologics for up to two years. The two companies have also put in place Governance Committees and an Integration Management Office to ensure smooth execution and integration during the transition period.
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