One hand holding a paper, another hand signing it.

Viatris, Biocon Biologics complete biosimilars transaction

Upon the completion of a transition services agreement, Biocon Biologics will assume responsibility for commercial, regulatory and other related services.

Viatris has closed its transaction with Biocon Biologics, creating what Viatris expects to be a unique fully vertically integrated global biosimilars company. 

Viatris and Biocon Biologics have entered a transition services agreement pursuant to which Viatris will provide commercialization and certain other transition services for an expected two-year period intended to ensure business continuity for patients, customers and colleagues. Upon the completion of the transition services, Biocon Biologics will assume responsibility for commercial, regulatory and other related services.

[Read more: Viatris sells biosimilar assets to Biocon Biologics]

"Today is a very exciting day in the continued evolution of Viatris. The closing today of the Biocon Biologics transaction represents the completion of the first in a series of achievements against the number of initiatives we laid out recently in our strategic update on Nov. 7 as part of our well-defined plan for Viatris,” said Viatris executive chairman Robert Coury. “While we will continue to further execute against this plan, we also look forward as now a significant shareholder of Biocon Biologics to supporting Kiran Mazumdar-Shaw, executive chairperson of Biocon Limited and Biocon Biologics, and her team to optimize the value of Biocon Biologics."

"The closing of our biosimilars transaction with Biocon Biologics marks the next natural step in the evolution of our collaboration together,” said Viatris president Rajiv Malik. “We are deeply committed to doing our part in helping Biocon Biologics succeed in the creation of what we believe will be a true global, vertically integrated biosimilars leader. As we look to Viatris' future, we are also excited to focus our energy, resources and efforts on executing our own strategy of moving up the value chain and providing access to more complex and novel products."

[Read more: Mylan-Upjohn combination to be called Viatris] 

Under the terms of the transaction agreement, Viatris received $3 billion in consideration in the form of a $2 billion cash payment and $1 billion of convertible preferred equity representing a stake of at least 12.9 % (on a fully diluted basis) in Biocon Biologics. Viatris also is entitled to $335 million of additional cash payments in 2024.

This ad will auto-close in 10 seconds