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Biocon Biologics acquires Viatris' biosimilars biz in $3.3 B deal

BSE Disclosure  

Biocon Biologics, a subsidiary of publicly listed biotech firm Biocon, will acquire Canonsburg, PA (USA)-based Viatris' biosimilars business in a USD 3.3 Billion cash and stock deal. Viatris will receive USD 2 Billion in cash upon closing of the transaction and USD 335 million as additional payments in 2024. Additionally, upon closing of the transaction, BBL will issue USD 1 Billion of compulsorily convertible preference shares (CCPS) to Viatris, equivalent to an equity stake of at least 12.9% in the company, on a fully diluted basis. The transaction is expected to close in the second half of 2022. With the deal, BBL will acquire Viatris' global commercial infrastructure in developed and emerging markets, its global biosimilars business with an estimated revenue of USD 875 million and EBITDA of USD 200 million for CY 2022. BBL will also obtain Viatris' rights in all biosimilars assets. The firms will also enter into a Transition Services Agreement, pursuant to which Viatris will provide certain transition services, including commercialization services, for an expected two-year period. Viatris also will pay USD 50 million to BBL to fund capital expenditures. The cash payment of USD 2 billion to be funded by USD 800 million raised through equity infusion in BBL and the remainder to be funded by debt, additional equity or both. BBL has received expressions of interest from financial institutions for debt financing and equity commitments from existing shareholders.

From the Venture Intelligence PE-VC Deal Database: Between Jan-20 and Jan-21, BBL had raised over USD 330 M from ADQ, Goldman Sachs, Tata Capital and TrueNorth. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)