Biocon Biologics has always positioned itself as a global player in biosimilars. Biocon’s longtime partner Viatris is charting a route that doesn’t include biosimilars for its future. The two companies have reached an agreement that brings both parties closer to their goals. Biocon is Obtain Viatris’ biosimilars business is worth up to $3.3 billion.
Biosimilars are biological drugs that are nearly identical to the original product in almost every way, except for the price of these expensive drugs. The deal, announced Monday, gives Biocon rights to Viatris’ biosimilar portfolio, which is expected to generate more than $1 billion in revenue next year. The drugs are sold in developed markets and complement Biocon’s portfolio of 20 biosimilars sold in emerging markets.
The link between partners predates Viatris. In 2009, Bengaluru, India-based Biocon formed an alliance with Viatris’ predecessor, Mylan, to develop monoclonal antibody biosimilars. In 2013, the partnership expanded to include insulin biosimilars. Founded in 2020, Viatris is Mylan and Pfizer’s Upjohn divisions mergewhich includes generic and brand-name drugs.
Shortly after the merger closed, Canosburg, Pennsylvania-based Viatris began a strategic review to determine which assets to keep and which to sell.The sale of the biologics business to Biocon is one of several transactions planned by Viatris; in its announcement In its full-year 2021 financial results on Monday, the company said it estimated the divestment of non-core assets would generate about $9 billion. Viatris said it expects to sell more assets by the end of next year, with the goal of “removing inefficiencies and complexity in the drug portfolio.” Viatris isn’t the only company pulling out of the biosimilar business.Last month, Biogen announced that it would sell its shares In its biosimilar joint venture, with Samsung Biopharmaceuticals for up to $2.3 billion.While Sandoz, Novartis’ generics and biosimilars businesses are currently their own strategic review The Swiss pharma giant has said this could lead to a business spin-off.
according to a Biocon Investor Presentation, Viatris will receive $2 billion in cash and $1 billion in stock, representing at least a 12.9% stake in Biocon. Viatris could receive up to $335 million.in a Viatris Regulatory Filings, the company said, the payment was broken down into a payment of $160 million on the second anniversary of the end of sales of the biosimilar business, and another $175 million on April 8, 2024. The deal gives Biocon access to a biosimilar candidate for Viatris product Regeneron Pharmaceuticals’ blockbuster macular degeneration drug aflibercept (Eylea). Viatris will not receive the $175 million payment if Biocon chooses not to acquire the aflibercept candidate.
Biocon and Viatris are expected to close the transaction in the second half of this year. At that time, Viatris will nominate a candidate on Biocon’s board of directors.
“This deal will [Biocon] “This will also prepare us for the next wave of products,” Biocon executive chairman Kiran Mazumdar-Shaw said in a prepared statement.
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