Global biopharmaceutical company Biocon Biologics Ltd. announced, on Tuesday, the completion of the acquisition of Viatris, a pharmaceutical company, for almost $3 billion.
According to the reports, the million-dollar acquisition was completed in two parts; equity and cash. Biocon Biologics paid upfront cash of $2 billion and issued Compulsorily Convertible Preference Shares (CCPS) worth $1 billion.
This deal has received all its approvals from critical global regulators like the US Federal Trade Commission, the Competition Commission of India and the Reserve Bank of India & its investors.
The acquisition was announced after the stock market’s closure on Tuesday. On the next day, Wednesday, the share of Biocon opened little changed to trade with a mid-cut of 0.2% at Rs 281.50 or $3.37 a piece on BSE.
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In regard to the acquisition, Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Biologic, said ━ “The completion of the acquisition of Viatris’ global biosimilars business 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 realise our vision of addressing global health inequities. This move will strengthen our value proposition to deliver long-term value to Biocon and Biocon Biologics shareholders.”
How this acquisition benefits Biocon Biologics?
- The acquisition will combine revenue and profits.
- With this, the company will have direct commercial capabilities.
- It will also support the company’s infrastructure.
- In addition, it will also gain full ownership of the assets, including bTrastuzumab, bPegfilgrastim, bBevacizumab, bGlargine, bAspart, bPertuzumab and bGlargine 300U, along with Viatris’ rights for the in-licensed immunology products of bAdalimumab and bEtanercept.
- With this acquisition, Biocon has also acquired Viatris’ rights for bAflibercept, which is used to treat several ophthalmology conditions.
The company also announced Rajiv Malik, President of Viatris, as the Board of Directors.
