Under a new agreement, Biocon Biologics will take over Viatris’ biosimilar business, according to statements made by the companies.
As part of a new partnership between the companies, Biocon Biologics announced that it will acquire Viatris’ entire biosimilar portfolio for up to $3.3 billion, according to a statement by Biocon.
Overall, Viatris will receive up-front payments of $2.3 billion and compulsorily convertible preference shares in Biocon Biologics, which are valued at $1 billion. The transactions have been approved by the Boards of Directors from both companies.
“This acquisition is transformational and will create a unique fully integrated, world-leading biosimilars enterprise. Our long-standing global partnership with Viatris has enabled us to achieve many firsts, setting new benchmarks for the global biosimilars industry. This strategic combination brings together the complementary capabilities and strengths of both partners and prepares us for the next decade of value creation for all our stakeholders,” said Kiran Mazumdar-Shaw, executive chairperson at Biocon Biologics.
Under the agreement, Biocon Biologics will realize full revenues and profit from the business and Viatris will provide commercial and other transition services for 2 years to ensure a smooth transition to Biocon Biologics.
Biocon Biologics is a subsidiary of Biocon that is based in Bengaluru, India. Viatris was formed during a 2020 merger of Mylan and Upjohn, which is a division of Pfizer, and it is headquartered in Canonsburg, Pennsylvania.
“This deal provides several advantages, including strategic agility and operational efficiencies, which will help us mitigate pricing pressures in a competitive global biosimilars landscape. We remain committed to sustainable growth with a strong financial profile, expanded geographical reach, and continued investments in [research and development] to build a world-leading biosimilars franchise. We believe that as a fully integrated global company, we will be able to enhance patient access and reduce health care inequities worldwide,” expressed Arun Chandavarkar, PhD, managing director at Biocon Biologics.
Biocon Biologics currently has 8 biosimilars approved and marketed in various countries, including Semglee, the first insulin glargine biosimilar and the first interchangeable biosimilar to be approved by the FDA. The India-based company shares the commercialization rights for Semglee with Viatris.
Viatris also has an FDA approval of an adalimumab biosimilar (Hulio), which is not able to enter the market until 2023. The European Medicines Agency approved the company’s etanercept biosimilar (Nepexto) in May 2020. Hulio references Humira and Nepexto references Enbrel. Viatris also has a trastuzumab biosimilar referencing Herceptin (Ogivri).
Together, Biocon Biologics and Viatris share the commercialization rights for Abevmy, a bevacizumab biosimilar that references Avastin. In a phase 3 study published in November 2021, Abevmy showed comparable safety and efficacy compared with the reference product in patients with stage IV nonsquamous non–small cell lung cancer.
“Our unique collaboration with Biocon began more than a decade ago, even before a biosimilars pathway was defined in most countries. During that time, we have experienced many successes, and today is no exception as we join together to create a new, uniquely positioned world-class vertically integrated biosimilars leader. This transaction will allow Viatris to continue to participate in the global biosimilars space in a more optimized way, while also allowing us to accelerate our own financial priorities,” said Robert J. Coury, executive chairman at Viatris.