“Viatris Completes $1.2 Billion Sale of API and Women’s Healthcare Divisions in India”

Viatris, the United States-headquartered global healthcare company, has successfully concluded two major deals in India, divesting its active pharmaceutical ingredients (API) and women’s healthcare businesses for a total consideration of approximately $1.2 billion. This strategic move is part of Viatris’ ongoing global divestiture efforts aimed at reducing debt.

The API business in India has been sold to Iquest Enterprises, a privately held pharmaceutical company based in Hyderabad and owned by Nimmagadda Prasad, the founder of Matrix Laboratories. This transaction encompasses three manufacturing sites, an R&D lab in Hyderabad, three manufacturing facilities in Vizag, and third-party API sales. Viatris will, however, retain certain selective research and development capabilities in the API sector.

Simultaneously, the women’s healthcare business, primarily associated with oral and injectable contraceptives, has been acquired by Insud Pharma, a prominent Spanish multinational pharmaceutical company. This transaction includes two manufacturing facilities in India, one located in Ahmedabad and the other in Sarigam. Both of these transactions are expected to conclude in the first quarter of 2024, as indicated in the statement released by Viatris. Jefferies and the law firm Saraf & Partners acted as advisors in facilitating these deals.

The official statement from Viatris also noted, “With this announcement, the company has delivered its commitment to announce agreements on all planned divestitures by the end of 2023 within the company’s previously communicated range, after considering the estimated retained value.”

Additionally, the company expects significant financial benefits from these divestitures. “Including gross proceeds from the company’s completed biosimilars divestiture, the company expects to realize gross proceeds representing a multiple above 12x on 2022 estimated adjusted EBITDA for its portfolio of divested assets. The gross proceeds to the company from all divestitures under the terms of the agreements are up to $6.94 billion, or up to approximately $5.2 billion in estimated aggregate net proceeds, taking into consideration taxes and other costs, including related transaction costs.”

Viatris’ divestment strategy underscores its commitment to optimizing its portfolio, strengthening its financial position, and focusing on core operations in the evolving healthcare landscape.

As Viatris successfully concludes these significant divestment agreements, industry observers will be keen to monitor the company’s future strategic moves and their impact on its global operations and financial health.

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