Viatris to sell several business segments for almost $7 billion

Pharmaceuticals giant Viatris Inc. said Monday it has agreed to sell several business segments in a planned divestiture.

The Cecil-based company will sell substantially all of its Over-the-Counter (OTC) business, Women’s Healthcare business, Active Pharmaceutical Ingredients business in India.

The company is also selling commercialization rights that were acquired when Mylan and Pfizer’s Upjohn merged to form Viatris in November 2020.

Gross proceeds from all divestitures are up to $6.94 billion, or up to about $5.2 billion in estimated aggregate net proceeds, the privately held company said Monday. Viatris plans to use the proceeds to pay down debt.

Viatris is retaining rights to the drugs Viagra and Dymista, as well as some over-the-counter assets.

CEO Scott A. Smith said the divestitures mark “an important milestone” for the company.

“Since joining Viatris, I have had the opportunity to review these divestitures more closely,” said Smith, who took over leadership in February. “After taking this closer look, I have made the decision to retain our rights for Viagra and Dymista, as well as other select OTC assets within certain markets as we see further opportunities for these products within Viatris.”

The sales mean up to 12 facilities and more than 6,000 workers, representing about 15% of Viatris’s global workforce, will leave the company.

Cooper Consumer Health, a European over-the-counter drug manufacturer and distributor, is buying substantially all of Viatris’s OTC business, including two manufacturing sites in Merignac, France, and Confienza, Italy, and a research & development site in Monza, Italy. The deal is expected to close in the second quarter of 2024.

Iquest Enterprises, a privately held pharmaceutical company, based in India is buying API business in India. The deal includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris will retain some selective R&D capabilities in API. The transaction is expected to close in the first quarter 2024.

Spanish pharmaceutical company Insud Pharma is buying the Women’s Healthcare business, primarily related to oral and injectable contraceptives. The deal includes two manufacturing facilities in India: one in Ahmedabad and one in Sarigam. The transaction is expected to close in the first quarter.

Viatris also is divesting its rights to women’s healthcare products Duphaston and Femoston to speciality pharmaceutical company Theramex in a deal that is expected to close in the fourth quarter.

As for the commercialization rights that were part of the combination with Upjohn, those transactions are expected to be completed in the fourth quarter.

The transactions are subject to regulatory approvals and other conditions.