Viatris Announces Strategic Divestitures Totaling $3.6 Billion
On Sunday, pharmaceutical company Viatris announced that it has reached agreements to divest several of its business segments, totaling up to $3.6 billion. This strategic move is in line with Viatris’s long-term plan to focus its efforts on three core therapeutic areas: ophthalmology, gastroenterology, and dermatology.
One significant part of this divestiture involves the sale of almost all of its over-the-counter (OTC) drug business for approximately $2.17 billion. The buyer is Cooper Consumer Health, a company based in France. Viatris, however, will retain rights to certain products, including the popular erectile dysfunction drug Viagra, the nasal spray Dymista, and select OTC drugs in specific markets.
In addition, Viatris will part with its women’s healthcare business, which is set to be acquired by the Spanish pharmaceutical company Insud Pharma. Simultaneously, the active pharmaceutical ingredients business based in India will be sold to Iquest Enterprises. These divestitures are expected to bring in around $1.2 billion in proceeds.
Viatris is the result of a merger between Mylan and Pfizer Inc.’s Upjohn business. The company’s portfolio includes a range of generic and key branded drugs, such as the arthritis treatment Celebrex, the erectile dysfunction medication Viagra, epilepsy treatment Lyrica, and the antidepressant Zoloft.
Furthermore, Viatris will also be transferring its rights to women’s healthcare products Duphaston and Femoston to Theramex, a London-based company. Additionally, the company will divest its commercialization rights in certain non-core markets that it acquired as part of the combination with Upjohn.
Viatris had previously divested its biosimilar business earlier in the year. When combined with these recent divestitures, the company is expected to generate approximately $6.94 billion in proceeds. It’s worth noting that Viatris reported strong second-quarter revenue in August, surpassing Wall Street estimates, thanks to the strength of its branded drug portfolio.
