- Viatris is selling off three business units for more than $3 billion, the company said Sunday, seeking to reduce its debt as it works toward a plan to improve revenue growth, add new product lines and buy back shares.
- In separate deals, Viatris will divest its consumer health, women’s health and active pharmaceutical ingredients businesses, although it will retain rights to some of its over-the-counter products. Added to a selloff of its biosimilars unit to Biocon in 2022, the company will raise $5.2 billion in total net proceeds.
- Formed by the merger of generics company Mylan and Pfizer subsidiary Upjohn, Viatris has struggled with debt that Mylan accrued during its acquisitive phase as well as broader market pressure on generic drug pricing. Notably, Sunday’s selloff involves an over-the-counter and generics business that Mylan gained when it bought Swedish drugmaker Meda for $7.2 billion in 2016.
Viatris aimed to bring its debt load down to three times earnings before accounting for taxes and interest by the first half of 2024, from 3.6 times earnings at the end of 2019. Company executives claim these transactions will get them there.
The first deal has Cooper Consumer Health spending $2.2 billion to take over Viatris’ consumer health business, which includes manufacturing sites in France and Italy and a research and development facility in Italy. Viatris will retain rights to erectile dysfunction pill Viagra in China, allergy spray Dymista in Europe and other select brands in some markets.
The women’s health unit is being bought by Spanish drugmaker Insud Pharma, which will gain two factories in India. Viatris is selling its India-based API business to Iquest Enterprises, a deal that will involve six manufacturing sites, an R&D facility and third-party sales.
In a separate transaction, meanwhile, women’s health specialist Theramex will buy the brands Duphaston and Femoston.
Viatris listed the combined proceeds from the API and women’s health businesses at $1.2 billion.
The company also divested Upjohn commercialization rights in countries where Viatris “had no established infrastructure.”
Viagra, Dymista and other retained products are valued at $1.6 billion, which executives said explained why it didn’t achieve the $5 billion in divestitures it initially planned. “We see further opportunities for these products within Viatris,” CEO Scott Smith said in a statement.
Shares in the company rose 3% in morning trading, changing hands at a little over $10 apiece.