Viatris Inc, the global healthcare firm, is selling its active pharmaceutical ingredient (API) and women’s healthcare businesses in India for a total consideration of $1.2 billion.
It will sell the API business to IQuest Enterprises, a multi-sector investment company, and the women's healthcare business to Insud Pharma, the Spanish pharmaceutical firm.
Viatris, which was formed from the merger of Mylan and Upjohn (a division of Pfizer), expects to close the API transactions in the first quarter of 2024.
The deal with IQuest includes three manufacturing sites and an R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris added that it will retain some selective R&D capabilities.
IQuest disclosed that it emerged as the preferred investor following a global competitive bid.
A significant part of the team at IQuest Enterprises was involved with some of the present facilities when it was operating as part of Matrix Labs, which was divested in 2006 to Mylan.
IQuest Enterprises is a multi-sector investment company. It has invested in various entities such as AIG Hospitals, CARE Hospitals and Celon Laboratories.
"We are excited about our largest investment in the pharmaceutical sector to date. Our investment comes at an opportune time when India is drawing significant attention in the global pharma industry,’’ Gunupati Swathi Reddy, executive director, IQuest Enterprises, said.
Viatris said it has also executed an agreement to divest its women's healthcare business, primarily related to oral and injectable contraceptives, to Insud Pharma.
The transaction includes two manufacturing facilities in India — one in Ahmedabad and another in Sarigam, Gujarat.
The transaction is also expected to close in the first quarter of 2024.
"Under the terms of today's announced divestitures, up to 12 facilities and more than 6,000 employees, representing 15 per cent of the company's global workforce, may be conveyed (shifted to other companies),’’ Viatris said.
In 2022, the company sold its biosimilars business to Biocon Biologics.