Biocon Biologics completely acquires Viatris’s global biosimilars business
Biocon Biologics will recognise the combined revenue and associated profits from the acquired collaboration biosimilars with immediate effect
Biocon Biologics has completed its acquisition of the global biosimilars business of its partner Viatris. The companies have obtained all applicable approvals from key global regulators including the US Federal Trade Commission, the Competition Commission of India (CCI) and the Reserve Bank of India (RBI), and its investors, a statement from Biocon notified.
Effective from the date of closing, Biocon Biologics will recognise the combined revenue and associated profits from the acquired products, a step-up from the existing profit share arrangement, the statement mentioned.
It also stated that the acquisition provides Biocon Biologics with direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets, bringing it closer to patients, customers and payers.
With the closing of the deal, Biocon Biologics has full ownership of its collaboration assets, bTrastuzumab, bPegfilgrastim, bBevacizumab, bGlargine, bAspart, bPertuzumab and bGlargine 300U, as well as Viatris’s rights for the in-licensed immunology products of bAdalimumab and bEtanercept. Biocon Biologics has also acquired Viatris’s rights for bAflibercept, which is used to treat several ophthalmology conditions, added the statement.
It further said that funding of the transaction as a part of completing the transaction, Biocon Biologics has issued Compulsorily Convertible Preference Shares (CCPS) in the company valued at $1 billion, equivalent to an equity stake of at least 12.9 per cent on a fully diluted basis, and made an upfront cash payment of $2 billion to Viatris.
To fund the upfront payment, Biocon Biologics has secured $1.2 billion of Sustainability Linked Loan (SLL). The balance has been funded through an equity infusion of $650 million by Biocon and $150 million by Serum Institute Life Sciences (SILS). Biocon’s funding comprises $230 million from the existing reserves and $420 million through mezzanine financing. The company is in the process of securing investments to retire the mezzanine financing, post deal closure, according to the statement.
Post conclusion of the Viatris and Serum transactions, Biocon’s stake in Biocon Biologics will be 68 per cent.