Viatris Sells Biosimilars Business to Biocon Biologics

Biocon Biologics announced that it will be acquiring Viatris’ biosimilars portfolio for around $3 billion.

Overall, Biocon Biologics will transfer up-front $2.3 billion along with Compulsorily Convertible Preference Shares in Biocon Biologics, which are valued at $1 billion. The transactions have been valued at a combined total of $3.3 billion and have been approved by the Board of Directors from both companies.

“The deal will enable [Biocon Biologics] to attain a robust commercial engine in the developed markets of [United States] 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,” said Kiran Mazumdar-Shaw, executive chairperson at Biocon Biologic, in a company statement.

Biocon Biologics is a subsidiary of Biocon that is based in Bengaluru, India. Viatris was formed during a merger of Mylan and Upjohn, which is a division of Pfizer, and is headquartered in Canonsburg, Pennsylvania.

“By combining the biosimilars business of Viatris to create a global, vertically integrated business into [Biocon Biologics], we are confident of unlocking significant value for our stakeholders. This deal gives BBL full ownership of Viatris’ rights in biosimilars assets, enabling us to recognize combined revenues and profits. To ensure a seamless transition and continued service to patients and customers, Viatris will provide commercial and other transition services to [Biocon Biologics] for an expected period of two years,” said Arun Chandavarkar, PhD, managing director at Biocon Biologics.

More on Biocon Biologics and Viatris

Biocon Biologics 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, respectively. 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 4 nonsquamous non-small cell lung cancer.

“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.