Biocon Biologics Ltd, a subsidiary of Biocon Ltd, on Monday said it will acquire Viatris Inc’s biosimilars business in a $3.3 billion cash and stock deal. US-based Viatris will receive cash consideration of $ 2 billion on closing of the transaction and up to $335 million as additional payments expected to be paid in 2024. Additionally, after the closure of the transaction, BBL will issue $1 billion of compulsorily convertible preference shares (CCPS) to Viatris, equivalent to an equity stake of at least 12.9 per cent in the company, on a fully diluted basis. The transaction is expected to close in the second half of 2022, subject to satisfaction of closing conditions (including certain regulatory approvals). Biocon shares fell 11.47 per cent to Rs 348.95 on the BSE on Monday. Kiran Mazumdar-Shaw, executive chairperson, Biocon Biologics, said: “This acquisition is transformational and will create a unique fully integrated, world leading biosimilars enterprise. Our global partnership with Viatris has enabled us to achieve many firsts.”
