Viatris Inc. has agreed to sell its convertible preferred equity stake in Biocon Biologics Limited for a total consideration of $815 million, comprising $400 million in cash and $415 million in newly issued shares of Biocon Limited. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions.
The sale removes the $815 million investment from Viatris’ balance sheet, delivering immediate liquidity that the company can redeploy toward its generics and innovative pipeline. By divesting its indirect exposure to biosimilars, Viatris also accelerates the expiration of the non‑compete restrictions that had limited its access to the global biosimilars market—those restrictions will expire immediately for ex‑U.S. markets and in November 2026 for U.S. markets.
On the balance‑sheet side, the transaction improves cash reserves, reduces debt, and strengthens the company’s capital structure. The influx of cash and equity also enhances Viatris’ ability to fund strategic initiatives and return capital to shareholders.
This sale follows a 2022 transaction in which Biocon acquired Viatris’ global biosimilars business for up to $3.335 billion. The current divestiture completes a strategic realignment that allows Biocon to fully integrate its biosimilar operations while enabling Viatris to refocus on core generics and specialty products.
Viatris’ most recent quarterly results provide context for the transaction. In Q3 2025, the company reported revenue of $3.8 billion, adjusted EBITDA of $1.2 billion, and adjusted EPS of $0.67—an EPS beat of $0.05 per share—despite flat revenue growth. The decline in adjusted EBITDA was largely attributed to the “Indore Impact,” a manufacturing disruption that is expected to weigh on 2025 earnings. In the preceding year, Q4 2024, Viatris posted revenue of $3.5 billion, a U.S. GAAP net loss of $634 million, and an adjusted EPS of $2.65, underscoring the operational headwinds the company faces.
CEO Scott A. Smith said the agreement “is another important step in Viatris’s evolution. 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.” CFO Doretta Mistras highlighted disciplined capital allocation, noting that more than $920 million had been returned to shareholders year‑to‑date.
The transaction signals a strategic shift away from indirect biosimilar exposure, improving Viatris’ risk profile and potentially enhancing shareholder value. By accelerating the expiration of non‑compete restrictions, the company positions itself to re‑enter the global biosimilars market while simultaneously freeing capital to invest in higher‑margin specialty products and generics.
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