Impressive, but there is ~$22bn debt to pay off. Although this business model may not offer much of a pipeline, or much long-term sustainability, it's difficult to argue that it is not attractive in the short term. It is not going to invest heavily in new market opportunities, new drugs, or extensive R&D. The India-based company shares the commercialization rights for Semglee with Viatris. I have no business relationship with any company whose stock is mentioned in this article. Biocon Biologics announced that it will be acquiring Viatris biosimilars portfolio for close to $3 billion. A public market downturn has extended through 2022, forcing venture firms to build their drug startups more cautiously. Bernstein is expecting some of the proceeds to be spend on stock buybacks, after the Viatris board approved a share buyback program of up to $1 billion. Under the terms of the deal, Viatris will receive $2 billion in cash upfront, plus an additional up to $335 million in cash payments to be made in 2024, and $1 billion in convertible preferred. The company, formed in November 2020, reported total sales of $4.56 billion, up from $4.35 billion in the (adjusted) year-ago quarter, a 5% improvement. The company announced last month that it would sell its biosimilars business - one of its most progressive divisions - in a $3.3bn deal. Topics covered: Pharma, biotech, FDA, gene therapy, clinical trials, drug pricing and much more. The deal, which is expected to close in the latter half of this year, would expand Biocon's reach while adding to the India-based company's existing portfolio of 20 biosimilar drugs. That view is based on the belief that Viatris will continue to report credit metrics in line with Fitch's rating . Viatris has successfully introduced biosimilars in 76 countries with the first one approved in the US in 2018. Viatris Inc. said Monday it has agreed to combine its biosimilars portfolio with privately held Indian company Biocon Biologics Ltd. for up to $3.335 billion, as part of a broader overhaul of its business following a strategic review. Disclosure: I/we have a beneficial long position in the shares of VTRS, OGN either through stock ownership, options, or other derivatives. 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Please disable your ad-blocker and refresh. Revenue came to $4.331 billion, up from $3.588 billion a year ago. Viatris has acquired in 5 different US states, and 6 countries. formed by the merger of generic drug maker Mylan and Pfizer Should we charge them for renovations? We work to address unmet needs through science and innovation to bring important medicines to market, such as our pending once-monthly glatiramer acetate, a generic Symbicort , a biosimilar to Avastin , a biosimilar to Eylea and biosimilar to Botox , and serve patients at every stage of life. Viatris, the company formed in 2020 through a merger of the generic drugmaker Mylan with a Pfizer division, said Monday that it would sell Mylans old biosimilars business to the Indian drugmaker Biocon for up to $3. Hulio - a biosimilar of Humira, AbbVie's (ABBV) >$20bn per annum selling anti-inflammatory therapy - has been launched in Canada, whilst biosimilars in development include versions of Regeneron's (REGN) $8bn per annum selling Eylea, Botox and a range of cancer drugs. PITTSBURGH, Oct. 20, 2021 /PRNewswire/ -- Viatris Inc. (NASDAQ: VTRS) is proud to confirm that Express Scripts, a leading pharmacy benefit management organization, will list Viatris' interchangeable biosimilar Semglee (insulin glargine-yfgn) injection as a preferred insulin brand on its National Preferred Formulary (NPF), which includes more than 28 million lives. To ensure a seamless transition and continued service to patients and customers, Viatris will provide commercial and other transition services to [Biocon Biologics] for an expected period of two years, said Arun Chandavarkar, PhD, managing director at Biocon Biologics. Viatris the company formed in 2020 through a merger of the generic drugmaker Mylan with a Pfizer division, said Monday that it would sell Mylan's old biosimilars business to the Indian. This caused its share price to fall by 35%, from $15 down to $9.80. 2022 MJH Life Sciences and Clinical Care Targeted Communications, LLC. Viatris and Biocon have introduced their Abevmy biosimilar bevacizumab version of Avastin in Canada. Viatris intends to continue to invest in expanding its commercial and scientific capabilities in key focus areas for the future, while continuing to participate in the global biosimilars market through its ownership position in Biocon Biologics. With this deal, BBL is buying out the biosimilar portfolio of its long-time collaborator Mylan that merged with Pfizer's Upjohn business to become Viatris. https://www.barrons.com/articles/viatris-sell-biosimilars-business-for-3-billion-shares-51646068401. Biocon Biologics Ltd (BBL), a unit of BSE-listed Biocon Ltd, said Monday it has agreed to acquire biosimilar business from US-based healthcare firm Viatris Inc for $3.335 billion in stock and cash . Viatris earned $17.8bn revenues in 2021, with EBITDA of $6bn. In July, the FDA approved Viatris' Semglee - an insulin glargine biosimilar of Sanofi's (SNY) Lantus, a drug that once earned peak sales of $7bn per annum, albeit less than $1bn in 2021. In my last post, I had highlighted Biosimilars as one of the key strengths of Viatris' business model, commenting that: A biosimilar is very similar to a generic, but its biological profile is not identical to the drug it is trying to imitate - so long as the efficacy and safety match the drug, however, the biosimilar can get around some of the restrictions that apply to generic drugs. I will not panic when the company sells of chunks of the business, and look elsewhere to find progressive biotech companies. Twitter users have complained a lot about Elon Musk's early moves after taking control of the social network, but their complaints seem tiny compared with what Tesla Inc. investors have had to suffer. I hope to see you there. PITTSBURGH, Nov. 7, 2022 /PRNewswire/ -- Viatris Inc. (NASDAQ: VTRS) today reported strong results for the third quarter of 2022 and reaffirmed its 2022 financial guidance. Sales of $4.52 billion jumped 53% from the year-ago quarter. Viatris Inc. (NasdaqGS:VTRS) is considering a potential sale of its consumer-health assets in Europe, in a deal that could fetch more than 3 billion ($2.9 billion) for the US drug-maker, according to people familiar with the matter. (earnings presentation). It would also increase the profits Biocon recognizes from a longstanding partnership with Viatris. I can understand investors' concerns on that front - how can you buy a company that is not going to grow, where is the value? Notably, we have paid down approximately $2.1 billion in debt year-to-date in 2022 and approximately $4.2 billion since the beginning of 2021, putting us squarely on track for our target to pay . Under the agreement, Viatris will divest its biosimilars portfolio and related commercial and operational capabilities to Biocon Biologics for $3.335 billion. I am not receiving compensation for it (other than from Seeking Alpha). Saraf and Partners acts on Viatris sale of biosimilars business to Biocon Biologics for US$ 3.3 billion. Viatris will receive consideration of up to USD 3.335 billion, including cash up to USD 2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at USD 1 billion. Under the terms of the agreement, Viatris will contribute to Biocon Biologics its biosimilars Of that total, complex generics and biosimilars accounted for $1.3 billion. After the sale of its most dynamic, promising division to Biocon to raise funds to pay back debt, I think investors now have a much clearer picture of the direction Viatris is headed in. The $3.3 billion purchase by Biocon Biologics is more than 16.5 times the projected income figure. Matthew Erick, chief commercial officer for advanced markets for Biocon, says, "With the launch of . Viatris is a leading global provider of biosimilars and has received regulatory approvals in more than 85 countries. Bengaluru, India and Toronto, Canada, May 19, 2022 . Viatris makes 61% of its sales in developed markets, and 60% of all of its sales are from its established brands. The company's biosimilars franchise is focused on the areas of oncology, immunology, endocrinology, ophthalmology, and dermatology. The exit is tactically smart; longer term we will see, analysts led by Aaron Gal wrote in a note to clients. There is more to come besides, with 5 more products expected to launch in 2023, including a generic version of blood thinners Xarelto and Eliquis. In February, Viatris announced it had agreed to sell its biosimilars business to Biocon Biologics for $3.3 billion. There's no telling if Viatris may sell its complex generics business in 2022 or 2023, however. However, the stock has gained slightly since, rising to a price of $10.7 at the time of writing, with a market cap valuation of $12.94bn. Biocon has agreed to purchase the biosimilars business of its fellow copycat medicines maker Viatris, announcing Monday a cash-and-stock deal worth up to $3.3 billion. biosimilars without borders Viatris is committed to increasing patient access to quality, affordable medicines. Members of Haggerston BioHealth get exclusive ideas and guidance to navigate any climate. Global pharmaceutical company Viatris Inc. (VTRS) manufactures and distributes complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs) worldwide.The company was created in November 2020 from Pfizer Inc.'s (PFE) generic medicine unit's (Upjohn Business) spin-off and its merger with Mylan N.V., a specialty pharmaceuticals company. Our view is that the biosimilar business ofVTRSwas struggling, with lower margin (the projected 2022 margin was 23%; lets see if we can get the trailing number), and there is reasonably tough competition looking forward. This deal was done in Cash & Stock. It argues this is a positive action in light of the company's 3 point "immediate execution" plan to reshape the business, corresponding to point 1 - "unlock value and simplify out business" - the others being to "accelerate financial flexibility" and "build a durable, higher margin portfolio.". The revenues of this acquired business. This deal will create a unique fully integrated global biosimilars enterprise in which Viatris will receive consideration of up to USD 3.335 billion, including cash up to USD 2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at USD 1 billion. Marking the third oncology biosimilar - and the fourth biosimilar overall - to be launched by Viatris in Canada, the product will face multiple other approved bevacizumab rivals in the market. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Shares initially jumped on the news, before reversing course to trade down 24%, as analysts said it would remove a key growth driver. The deal took place in consideration for stock and cash. It's largest disclosed sale occurred in 2022, when it sold Viatris - Biosimilars to Biocon for $3.3B. Biosimilar medicines are approved by regulatory authorities as highly similar to the originally approved brand version with no clinically meaningful differences in safety or efficacy. In a phase 3 study published in November 2021, Abevmy showed comparable safety and efficacy compared with the reference product in patients with stage 4 nonsquamous non-small cell lung cancer. The news may have frustrated some investors, but it may please others - the real value of the business is in the established brands. Viatris was formed during a merger of Mylan and Upjohn, which is a division of Pfizer, and is headquartered in Canonsburg, Pennsylvania. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. The deal, which is expected to close in the latter half of this year, would expand Biocon's reach while adding to the India-based company's existing portfolio of 20 biosimilar drugs. I write about Biotech, Pharma and Healthcare stocks and share investment tips. One of the ways we're working to achieve this goal is our focus on biosimilar medicines. According to the companies, Viatris' biosimilars business is on track to generate $875 million in revenue for 2022 and more than $1 billion in 2023. Overall, Biocon Biologics will transfer up-front $2.3 billion along with Compulsorily Convertible Preference Shares in Biocon Biologics, which are valued at $1 billion. Viatris Chief Executive Michael Geottler. Still, new biotech companies continue to emerge, as private investors have billions of available dollars to put to use. When I last covered Viatris I was comparing the company's stock with another spin-off company, Organon & Co. (OGN). ET, to review the Company's financial results for the third quarter ended September 30, 2022, and provide an update on its February 28 Investor Event. Is this happening to you frequently? Biosimilars news; In Brief; Coronavirus; Legal; Patents and Trademarks; Asia Pacific; World News; In the Boardroom; Companies; Top News Stories. If you have an ad-blocker enabled you may be blocked from proceeding. pittsburgh, oct. 20, 2021 /prnewswire/ -- viatris inc. (nasdaq: vtrs) is proud to confirm that express scripts, a leading pharmacy benefit management organization, will list viatris'. Sign In. That deal resulted from a strategic review conducted to streamline the business . If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth. This was formed after Merck divested its biosimilars, Women's Health, and Established Brands divisions into a new entity. Upon closing, the transaction is expected to provide Viatris with immediate, enhanced financial flexibility, and accelerate its Phase I financial commitments, the company said in a statement. Although, in time, some established brands may lose market share in, e.g., the US and Europe, as new medicines arrive with a superior efficacy / safety profile, their sales may still increase in emerging markets that cannot afford to pay top dollar for their medicines. I wrote this article myself, and it expresses my own opinions. Viatris Inc.. Anybody who is buying Viatris stock for more pragmatic reasons - to benefit from high margin sales of legacy drug brands before they are replaced by newer brands, or swallowed up by generics, for a generous dividend, and at an exceptionally cheap share price - will probably have taken the news - and the share price dip - far better. Artificial Intelligence in Digital Pathology Diagnostics: What Do Physicians Know and Expect? It would take a lot for Viatris to perform badly enough as a company to justify its current low market cap valuation. Those hoping that Viatris would prioritize forward-thinking biosimilar drug development, and invest heavily in R&D to try to change the prescription drug landscape, will obviously be disappointed.
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