According to the reports, Biopharmaceutical Company, Biocon, a material subsidiary of Biocon Limited, has approved the proposed acquisition of biosimilars assets of Viatris Inc. The transaction is subject to necessary regulatory and other approvals.

Viatris will receive a consideration of up to $3.335 billion, including cash up to $ 2.335 billion and Compulsorily Convertible Preference Shares (CCPS) in Biocon Biologics, valued at $1 billion, according to the reports.

According to the company, BBL will have a comprehensive portfolio comprising its current range of commercialized insulins, oncology and immunology biosimilars as well as several other biosimilar assets currently under development. BBL also has access to the vaccines portfolio through its previously announced partnership with Serum Institute Life Sciences (SILS).

Viatris to provide commercial and other transition services for an expected period of two years to ensure continuity of customer service and smooth transition to Biocon Biologics (BBL), as per the reports.

The transaction is expected to close in 2H-2022, subject to satisfaction of closing conditions (including certain regulatory approvals). The companies will also enter into a Transition Services Agreement, pursuant to which Viatris will provide certain transition services, including commercialization services, for an expected two-year period. Viatris also will pay $50 million to BBL to fund certain capital expenditures.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Biologics , “the deal will enable BBL to attain a robust commercial engine in the developed markets of US & Europe and will fast-track our journey of building a strong global brand. It will also make us future-ready for the next wave of products.”

Biocon is addressing global medical needs through a portfolio of differentiated and high quality, life-saving biotherapeutics. Company uses innovative science to bring competition for some of the world’s most expensive medicines through generics and biosimilars, thus enabling affordable access to advanced therapies for millions of patients with chronic conditions across the globe.