As a part of a $3.6 billion global divestiture drive to reduce debt, US-based pharmaceutical company Viatris, formerly known as Mylan, is selling its active pharmaceutical ingredients (API) and women's healthcare businesses in India for a combined consideration of $1.2 billion.
While the women's healthcare business will be acquired by the Spanish company Insud Pharma, the API business will be sold to Secunderabad-based investment company IQuest Enterprises.
According to a statement released by Viatris in Pittsburgh, US, the API business sale includes three manufacturing facilities and an R&D laboratory in Hyderabad, three manufacturing facilities in Visakhapatnam, and third-party API sales.
The women's healthcare industry, which includes two Gujarati manufacturing facilities in Ahmedabad and Sarigam, has been acquired by Insud Pharma. The primary focus of the women's healthcare industry is oral and injectable contraceptives.
Scott A. Smith, the CEO of Viatris mentioned about the statement that it represents a significant turning point in the execution of the overall strategic plans. It will complete both Phase 1 commitments which is a deleveraging target of three times gross leverage at the start of 2024 and also start the Phase 2 strategy for 2024.
Sanjeev Narula, the chief financial officer of Viatris had previously stated that since the start of 2021, the company is balancing the sheet by paying down $6.1 billion in debt.
Viatris chose to keep the rights for some OTC products including Viagra, Dymista, and others with an estimated retained value of $1.6 billion. Along with this, the company also divested its rights to women's healthcare products such as Duphaston and Femoston to Theramex which is a premier international specialty pharmaceutical firm devoted completely to women's health.
