Viatris has struck a major deal with Biocon Limited to sell its stake in Biocon Biologics Limited, netting $815 million in cash and equity.

 

Under the definitive agreements, Biocon will acquire all of Viatris’ convertible preferred equity in Biocon Biologics for $400 million in cash and $415 million in newly issued Biocon shares, which will trade on the National Stock Exchange of India. The shares will be subject to a six-month lock-up period, and the transaction is expected to close in the first quarter of 2026, pending standard closing conditions.

 

“This agreement is another important step in Viatris' evolution,” said Scott A. Smith, Chief Executive Officer of Viatris. “Monetizing 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.”

 

The deal also accelerates the expiration of biosimilars non-compete restrictions previously imposed on Viatris in 2022. These restrictions will now end immediately for all markets outside the U.S. and in November 2026 for the US.

 

Citi served as financial advisor to Viatris, with Cravath, Swaine & Moore LLP and Indian law firm Khaitan & Co. providing legal counsel.