Viatris announces strategic asset sales worth US$3.6 billion to shape its future

USA — Viatris has unveiled plans to sell several assets, including a significant portion of its over-the-counter (OTC) business and its women’s healthcare division, in a series of transactions valued at approximately US$3.6 billion.

The divestitures include a substantial portion of its over-the-counter (OTC) business and the women’s healthcare segment.

CEO Scott Smith views these actions as a pivotal milestone in executing their overarching strategic plan, positioning the company favorably as they embark on Phase 2 for 2024 and beyond.

In the first transaction, Viatris has accepted a nearly US$2.2 billion offer from Cooper Consumer Health for the majority of its OTC business.

This includes two manufacturing facilities in France and Italy, along with an R&D facility in Italy. Notably, Viatris intends to retain the rights to products like Viagra, Dymista, and select other OTC items in specific markets. The expected closure of this transaction is in the second quarter of 2024.

Valued at US$1.2 billion, Viatris has also entered into agreements to divest its active pharmaceutical ingredient (API) business in India to IQuest Enterprises and its women’s healthcare unit to Insud Pharma.

The IQuest transaction encompasses three manufacturing sites, an R&D laboratory in Hyderabad, and additional manufacturing sites in Vizag, including third-party API sales.

Anticipated closure for this deal is in the first quarter of the following year. The agreement with Insud Pharma primarily covers oral and injectable contraceptives and includes two manufacturing facilities in India, with a closing date set for the first quarter of 2024.

Additionally, Viatris has agreed to sell its rights to women’s healthcare products Duphaston and Femoston to Theramex, with the sale expected to conclude later this year.

This also includes commercialization rights in specific non-core markets that were part of the Upjohn combination, where the company had no established infrastructure before or after the transaction.

These divestitures represent a strategic shift for Viatris, which was established in 2020 through the merger of Pfizer’s Upjohn unit and Mylan.

The company immediately initiated a global restructuring program to streamline its manufacturing and supply network, reducing its cost base. Last year, Viatris agreed to sell its biosimilars business to Biocon for up to US$3.3 billion.

Since assuming the role of Viatris CEO earlier this year, Scott Smith has conducted a thorough evaluation of these divestitures.

As a result, he has chosen to retain the rights to Viagra and Dymista, along with select OTC assets in specific markets, recognizing further growth potential for these products.

Viatris reports that these divestitures will impact approximately 12 facilities and over 6,000 employees, constituting 15% of its global workforce.

This strategic move underscores the company’s commitment to positioning itself for a more focused and sustainable future.

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