Viatris continues downsizing with $3.6-billion sale of OTC, women’s health, API assets
02 Oct 2023
AcquisitionExecutive Change
Viatris announced that it will sell a number of assets, including the majority of its over-the-counter (OTC) business and women's healthcare segment, as part of transactions worth a total of around $3.6 billion. CEO Scott Smith said the divestitures mark “an important milestone in the execution of our overall strategic plan,” setting the company “up extremely well as we enter into our Phase 2 strategy for 2024 and beyond.”
Under the first deal, Viatris received a $2.17-billion offer from Cooper Consumer Health for substantially all of its OTC business, including two manufacturing sites located in France and Italy, as well as an R&D facility in the latter country. Viatris noted that it plans to retain rights to Viagra, Dymista and certain other OTC products in some markets. The transaction is expected to close in the second quarter of 2024.
Meanwhile, Viatris entered into an agreement to divest its active pharmaceutical ingredient (API) business in India to Iquest Enterprises. The transaction, which is expected to close in the first quarter of next year, includes three manufacturing sites and an R&D laboratory in Hyderabad, three manufacturing sites in Vizag and third-party API sales.
In addition, Viatris has signed a deal to sell its women's healthcare business, primarily related to oral and injectable contraceptives, to Insud Pharma. The transaction includes two manufacturing facilities in India and is scheduled to close in the first quarter of 2024. Viatris also agreed to divest its rights to women's healthcare products Duphaston and Femoston to Theramex, with the deal expected to close later this year, as well as commercialisation rights in certain non-core markets that were part of the combination with Upjohn in which the company had “no established infrastructure prior to or following the transaction.”
Viatris was formed in 2020 through the merger of Pfizer's Upjohn unit and Mylan, with the company immediately kicking off a global restructuring programme to reduce its cost base by rationalising its manufacturing and supply network. Last year, Viatris agreed to sell its biosimilars business to Biocon for up to $3.3 billion.
Meanwhile, Smith took over as chief executive earlier this year. “Since joining Viatris, I have had the opportunity to review these divestitures more closely. After taking this closer look, I have made the decision to retain our rights for Viagra and Dymista, as well as other select OTC assets within certain markets as we see further opportunities for these products,” Smith explained.
According to Viatris, the divestitures affect up to 12 facilities and more than 6000 employees, representing 15% of its global workforce.
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