World News | Biocon Subsidiary Completes Viatris Acquisition for $3 Billion

Bangalore (Karnataka) [India]Nov 29 (ANI): Biocon Biologics, a subsidiary of listed biopharmaceutical company Biocon Ltd, announced on Tuesday that it has successfully completed the $3 billion acquisition of the global biosimilar business of its partner Viatris.

Biocon Biologics and Viatris have completed a part equity and part cash multibillion-dollar accretive transaction, including a $2 billion cash upfront and issuance of mandatory convertible preferred stock (CCPS) valued at $1 billion, according to a statement from the pharmaceutical company. Dollar.

Read also | NATO reaffirmed its pledge to join Ukraine, pledging to provide arms and aid in the fight against Russian forces.

Both have received all applicable approvals from key global regulatory bodies such as the US Federal Trade Commission, the Competition Commission of India and the Reserve Bank of India and their investors, respectively.

Biocon Limited is an innovation-led global biopharmaceutical company focused on delivering affordable complex therapies for chronic diseases such as diabetes, cancer and autoimmunity.

Read also | The Pakistani army’s reputation “declined” under General Kamal Javid Bajwa’s tenure.

The multi-billion dollar acquisition will provide Biocon Biologics with immediate commercial capabilities and support infrastructure in advanced and emerging markets.

The statement added that Biocon Biologics has a unique portfolio of 20 biosimilar assets, including insulin and monoclonal antibodies across therapeutic areas such as diabetes, oncology, immunology and ophthalmology.

Kiran Mazumdar Shaw, Executive Chairman of Biocon Biologics, said: “The completion of the acquisition of Viatris’ global biosimilars business marks a historic turning point for Biocon Biologics as the world’s leading, fully integrated biosimilars company, committed to serving patients’ need for affordable, essential medicines. demand for biologic medicines. It will accelerate our direct access to several advanced and emerging markets. This acquisition builds on our decade-long partnership and will allow us to realize our vision of addressing global health inequalities .I believe this move will strengthen our value proposition and deliver long-term value to Biocon and Biocon Biologics shareholders.”

She further stated that to ensure a seamless and continuous service to patients and customers, Viatris will continue to work with the team for up to a two-year transition period. Shaw thanks the teams at Biocon Biologics and Viatris, who worked together to address the regulatory and statutory requirements to bring the transaction to close.

As part of closing the transaction, Biocon Biologics has issued $1 billion worth of Compulsory Convertible Preferred Shares (CCPS), representing at least a 12.9% fully diluted equity interest, and made an upfront cash payment of $2 billion to Viatris.

To cover the upfront payment, Biocon Biologics has secured a $1.2 billion Sustainability-Linked Loan (SLL). The balance was funded through a $650 million equity injection from Biocon Limited and a $150 million equity injection from Serum Institute Life Sciences (SILS). Funding for Biocon Limited consists of US$230 million from existing reserves and US$420 million from mezzanine financing. Biocon is securing investment to exit mezzanine financing, closing after deal.

Following the completion of the Viatris and Serum transactions, Biocon Limited’s shareholding in Biocon Biologics will reach 68%. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)