Viatris has entered into definitive agreements with Biocon for the sale of Viatris' equity stake in Biocon Biologics. Under the definitive agreements, Biocon will acquire all of Viatris' convertible preferred equity in Biocon Biologics for total consideration of USD 815 million, consisting of USD 400 million in cash and USD 415 million in newly issued equity shares of Biocon.

"This agreement is another important step in Viatris' evolution. Monetising 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," said Scott A Smith, Chief Executive Officer, Viatris.

Under the terms of the agreements, Viatris will sell its equity stake in Biocon Biologics to Biocon for USD 400 million in cash and USD 415 million in equity shares of Biocon, which will be listed and traded on the National Stock Exchange (NSE) of India. The shares are subject to a six-month lock up period. Transaction value will be subject to related taxes.

In addition, the terms of the definitive agreements accelerate the expiration of biosimilars non-compete restrictions previously placed on Viatris in 2022 in connection with Viatris' sale of its biosimilars portfolio and related commercial and other capabilities to Biocon Biologics. These restrictions will expire immediately at the time of close for all ex-US markets and in November 2026 for US markets. The transaction is expected to close in Q1 2026, subject to satisfaction of closing conditions.