Biocon buying Viatris biosimilar biz in $3.3bn deal

Indian drugmaker Biocon will add a portfolio of biosimilars – estimated to bring in $875 million in 2022 sales – through the planned acquisition.

The deal, announced Sunday, will see Biocon Biologics pay up to $3.335 billion, made up of $2.335 billion in cash and $1 billion in Compulsorily Convertible Preference Shares (CCPS), for its partner Viatris’ biosimilars division. Viatris will own at least 12.9% of Biocon Biologics once the deal goes through.

Kiran Mazumdar-Shaw, Biocon’s executive chair, described the deal as “transformational,” bringing together “the complementary capabilities and strengths of both partners” and preparing Biocon for the next decade of stakeholder value creation.

“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.”

Viatris has a large portfolio of commercialized generics, over-the-counters, and small molecule active pharmaceutical ingredients (APIs), but the deal will see Biocon acquire and merge its firm’s biosimilar business. As of October 2021, the firm had launched seven biosimilars across various regions with a further 13 in development.

The two firms codeveloped the first interchangeable biosimilar Semglee (insulin glargine), and have worked together on other biosimilars, including Ogivri (trastuzumab), Fulphila (pegfilgrastim), Abevmy (bevacizumab). Meanwhile, Viatris’ partnership with Fujifilm Kyowa Kirin Biologics has led to the approval of Hulio (adalimumab), and a partnership with Momenta (now Janssen) is looking to develop a biosimilar version of Eylea (aflibercept).

According to Viatris, revenues from its biosimilars business are expected to pull in approximately $875 million in 2022.

“Our successful collaboration with Biocon Limited, the majority shareholder of Biocon Biologics, began more than a decade ago and has a shared history of many accomplishments,” Viatris president Rajiv Malik said in a statement.

“This transaction is the right natural next step for our partnership. Creating what we expect to be a unique vertically integrated global biosimilars leader is a continuation of our biosimilars journey and enables us to participate in this space in a more optimized way while unlocking substantial trapped value.”