The biosimilars businesses owned by Viatris and Biocon have been intertwined for many years, and the partnership is heading for fuller consummation. The Indian group is paying $3.3bn to take control of the partnership, allowing Viatris to pay down debt and focus on fewer, higher-margin areas. The terms see Biocon hand over $2bn in cash and $1bn of Biocon Biologics shares, equivalent to around a 13% stake; this biologics division will be spun off via IPO towards the end of 2023. A further $335m will be paid if Biocon choses to opt in on an Eylea biosimilar. Notably, the deal does not include a Botox copycat; this project remains Viatris’s most important pipeline project, analysts at Evercore ISI noted today. How Viatris plans to keep expanding is a big question for investors, as biosimilars was considered one of its fastest-growing business areas. Perhaps this explains why Viatris shares dropped 23% on the news, even as the sellside came out largely in support of the valuation. The company is far from the first to step back from this area: Biogen sold its stake in a biosimilars joint venture last month.
| The biggest biosimilars heading Biocon's way | ||||||
|---|---|---|---|---|---|---|
| Forecast worldwide sales ($m) | ||||||
| Product | Reference brand | 2022 | 2023 | 2024 | 2025 | 2026 |
| Semglee | Lantus | 261 | 274 | 282 | 299 | 311 |
| Ogivri | Herceptin | 161 | 153 | 148 | 145 | 143 |
| Fulphila | Neulasta | 146 | 144 | 142 | 140 | 141 |
| Hulio | Humira | 96 | 111 | 197 | 178 | 175 |
| Krabeva | Avastin | 15 | 20 | 25 | 30 | 35 |
| Note: brand names may differ regionally, Humira biosimilar to launch in US 2023. Source: Evaluate Pharma. https://www.evaluate.com/vantage/articles/news/corporate-strategy-snippets/another-biosimilars-retreat-time-viatris | ||||||
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