Viatris signs agreements with Biocon on $815m stake sale

Viatris will sell all of its convertible preferred equity in Biocon Biologics. The deal value comprises $415m in newly issued Biocon equity shares and $400m in cash.

The newly issued shares will be listed and traded on the National Stock Exchange of India. They will be subject to a lock-up period of six months, and the overall transaction value will be adjusted for applicable taxes.

The agreements also provide for an earlier end to the biosimilars non-compete restrictions that were implemented in 2022 after Viatris sold its biosimilars portfolio to Biocon Biologics.

These restrictions will conclude at closing for markets outside the US, while in the US they will remain in effect until November 2026.

The deal is anticipated to be finalised in the first quarter of 2026, pending the fulfilment of all closing conditions.

Viatris has appointed Citi as its financial advisor, with Cravath, Swaine & Moore and Khaitan & Co providing legal counsel.

Viatris CEO Scott Smith stated: “Monetising the value of our equity stake in Biocon Biologics and regaining access to the biosimilars market globally provides significant additional optionality as we continue to build a portfolio of generics, established brands and innovative brands that can contribute to our future growth.”

Viatris is a global healthcare company with operations headquartered in Pittsburgh in the US, with additional centres in Hyderabad, India and Shanghai, China.

The company supplies medicines a billion patients worldwide each year, offering a broad portfolio that covers both generics and branded therapies.

It supports healthcare needs, from acute to chronic conditions, through its global supply chain and scientific expertise.

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