Viatris completes divestitures with closing of OTC business divestiture
Viatris has closed the divestiture of its over-the-counter business to Cooper Consumer Health, a European over-the-counter drug manufacturer and distributor, bringing to substantial completion all previously announced divestitures.
In October, the company announced it had entered into agreements to divest substantially all of its OTC business, as well as its Women's Healthcare business, its Active Pharmaceutical Ingredients business in India and commercialization rights in certain non-core markets.
The completion of the OTC divestiture, the largest of the divestitures that the company previously announced, is a major milestone in the execution of the company's strategic plan to considerably simplify the organization in order to increase focus on areas with the greatest potential to accelerate growth, patient impact and shareholder value, Viatris said.
[Read more: Insud Pharma acquires Viatris' women's healthcare business]
The company also said it believes it found the right fit and future owners for all these well-performing businesses and has been committed to ensuring a successful transition for colleagues, partners, customers and patients.
Viatris reiterated that the proceeds from its divestitures and its sector-leading cash flow generation gives it line of sight to achieving its key priorities, including: achieving its long-term gross leverage target, increasing shareholder return through share buybacks and dividends, fueling its base business and, importantly, making disciplined, strategic investments to identify, acquire, develop and commercialize innovative assets that can build off its very strong base business and drive future revenue growth.
"Closing the divestiture of our OTC business is a significant milestone in the execution of our strategic plan," said Scott A. Smith, CEO of Viatris. "With all our previously announced divestitures now substantially complete, Viatris is stronger and more streamlined. We look forward to an exciting future in which we continue to build on our very strong base business and add to our innovative product pipeline to drive strong future revenue growth and positively affect even more patients' lives worldwide."
Viatris divested substantially all of its OTC business to Cooper Consumer Health, a leading European over-the-counter drug manufacturer and distributor. The transaction includes two manufacturing sites located in Merignac, France, and Confienza, Italy, and a Research & Development site in Monza, Italy. The company is retaining rights for Viagra, Dymista and select OTC products in certain markets. The transaction closed on July 3, 2024.
[Read more: Viatris expands well-being program with launch of Unmind]
Viatris previously announced that it has divested its API business in India to Matrix Pharma Private Limited. The transaction includes three manufacturing sites and an R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris is retaining some selective R&D capabilities in API. The transaction closed in June 2024.
Viatris previously announced that it has divested its Women's Healthcare business, primarily related to oral and injectable contraceptives, to Insud Pharma, a leading Spanish multinational pharmaceutical company. The transaction includes two manufacturing facilities in India: one in Ahmedabad and one in Sarigam. The transaction closed in March 2024.
Separately, in another transaction, Viatris previously announced it has divested its rights to women's healthcare products Duphaston and Femoston in certain countries to Theramex HQ UK Limited, a leading global specialty pharmaceutical company dedicated to women's health. The transaction (other than in the U.K., which remains subject to regulatory approval) closed in December 2023.
As previously indicated, Viatris' next update with respect to 2024 financial guidance will reflect the impact of the OTC divestiture, including adjustments to exclude the expected performance of the OTC business from the closing date of the transaction through the end of 2024.