Pittsburgh-based drugmaker Viatris announced multiple divestitures this week, in line with its strategic plan to reduce its debt burden.
Viatris, formed from the 2020 merger of Mylan and Pfizer's Upjohn business, announced this week that its divestitures include the sale of its OTC business, women's healthcare business, API business in India, and commercialization rights in certain non-core markets that were part of its Upjohn transaction.
Viatris CEO Scott A. Smith said the divestitures are expected to simplify the organization and enhance focus on areas with substantial growth potential. Overall, the company anticipates gross proceeds of up to $6.94 billion from the divestitures, with approximately $5.2 billion in estimated net proceeds after factoring in taxes and other costs.
Viatris has decided to retain rights for products such as Viagra and allergy med Dymista in select markets. While the divestitures are subject to regulatory approvals and other closing conditions, they are expected to be completed in stages, with some concluding in 2023 and others in 2024.
The company had teased its plans to shake things up back in February 2022, when Smith shared that the company was looking to “unlock value and reshape.” Then, they planned to transfer its biosimilars portfolio to Biocon Biologics and focus primarily on three core therapeutic areas: ophthalmology, gastrointestinal and dermatology. In January 2023, Viatris successfully executed this strategy by completing the acquisitions of Oyster Point Pharma and Famy Life Sciences, establishing the new Viatris Eye Care Division.