Viatris Inc., the result of the merger between Mylan NV and Pfizer Inc.’s Upjohn unit in 2020, has sold two of its businesses in India for $1.2 billion as part of a global exercise to exit non-core businesses.
Viatris on Monday said it sold the Indian active pharmaceutical ingredients (API) business to IQuest Enterprises, a local pharma firm owned by Matrix Laboratories founder Nimmagadda Prasad. The deal marks Prasad’s re-entry into the API business that he sold to Mylan in 2006.
Viatris also sold its women’s healthcare business to Insud Pharma of Spain.
The API business in India includes three manufacturing sites and a research lab in Hyderabad, three manufacturing sites in Visakhapatnam and third-party API sales, Viatris said in a statement. The company will retain some research and development (R&D) capabilities in API. The women’s healthcare business, which primarily specializes in oral and injectable contraceptives, includes two manufacturing facilities in Gujarat, one each in Ahmedabad and Sarigam.
Mylan acquired the Famy Care women’s healthcare business from the Mumbai-based Taparia family in 2015 for $800 million. Mint first reported the company’s plans to sell the women’s healthcare business on 8 November.
Both transactions, subject to regulatory approvals, are expected to close in the first quarter of 2024.
In February 2022, Viatris sold its local biosimilar business to Biocon Biologics for $3.35 billion as part of a plan to exit various businesses in Europe and other markets, including India. At that time, Viatris said it had identified non-core opportunities, including the Biocon Biologics deal, that could generate around $9 billion in pre-tax proceeds.
“Completion of divestitures will bring a successful conclusion to all Phase 1 efforts and commitments, including prioritizing the use of net proceeds for debt paydown to reach gross leverage target of 3x in the first half of 2024,” the company statement said. “It will also set the company up extremely well as we enter into our Phase 2 strategy for 2024 and beyond,” it added. The company said it has achieved its goal of substantially simplifying the organization by increasing focus on areas with the greatest potential to accelerate growth, patient impact and shareholder value.
Global investment bank Jefferies, which specializes in pharma deals, and law firm Saraf and Partners, advised Viatris on the transaction.
Viatris is known for its off-patent blockbusters, such as the cholesterol treatment drug Lipitor, erectile dysfunction drug Viagra and antidepressant Zoloft.
The drugmaker also sells many lesser-known over-the-counter items like dietary supplements, allergy medicines and cosmetics.
