Nimmagadda Prasad-backed Iquest Enterprises has bought the active pharmaceutical ingredients (API) business of global drugmaker Viatris in India.
The sale includes three manufacturing sites and a research and development (R&D) lab in Hyderabad, three manufacturing sites in Visakhapatnam, and third-party API sales, Viatris said.
Viatris, known for blockbuster drugs such as the erectile dysfunction drug Viagra, cholesterol treatment drug Lipitor, and antidepressant Zoloft, also sold its women’s healthcare business related to oral and injectable contraceptives to Spanish pharma company Insud. This deal includes two manufacturing facilities in Gujarat: one in Ahmedabad and another in Sarigam.
The divestments of both the API and women’s healthcare ventures, part of a global effort to exit non-core businesses, are likely to fetch about $1.2 billion, Viatris said.
Bengaluru-based Matrix Laboratories founder Nimmagadda had sold the API business to Mylan in 2006. Mylan later became part of Viatris after the 2020 merger with Pfizer Inc’s Upjohn unit.
Viatris sold its domestic biosimilars business to Biocon Biologics for $3.35 billion in February 2022 as part of its plans to exit markets, including India.
The divestments, apart from the sale of the API and women’s healthcare ventures, include sale of commercialization rights in certain non-core markets that were acquired as part of the Upjohn transaction, the company said.
The gross proceeds to Viatris from all divestitures under the terms of the agreements are up to $6.94 billion, or up to approximately $5.2 billion in estimated aggregate net proceeds, taking into account taxes and other costs, the company said.
Viatris made the strategic decision to retain rights for Viagra, Dymista, and select over-the-counter products in certain markets, the company added.
Viatris intends to prioritize the use of net proceeds from the divestitures for debt paydown, it added.
Both transactions, subject to regulatory approvals, are expected to close by March next year.
Cravath, Swaine and Moore LLP and Saraf and Partners served as legal advisors to Viatris in the transactions. PricewaterhouseCoopers LLP served as an advisor and Jefferies International Ltd served as a financial advisor.