VTRS · 10-Q · 2026Q2 · Full report

Acquisition / Partnership / Divestiture

Viatris Inc · 2026-08-06 · Importance 71 · Surprise 60 · In source text

Viatris sold all of its preferred shares in Biocon Biologics under agreements signed in December 2025 for total consideration of $815.0 million, consisting of $400.0 million in cash and $415.0 million of newly issued Biocon equity. The transaction closed in the first quarter of 2026, and the Biocon shares were later sold on July 14, 2026 for approximately $380 million of pre-tax proceeds after a 2.7% block-sale discount, transaction fees and foreign-exchange effects. Viatris recorded a $56.3 million fair-value gain in the second quarter and an $8.6 million fair-value loss for the six months ended June 30, 2026. The transaction immediately ended biosimilar non-compete restrictions in ex-U.S. markets and will end the U.S. restrictions in November 2026.

Key facts

• In December 2025, Biocon acquired all of Viatris’ CCPS in Biocon Biologics for total consideration of $815.0 million, consisting of $400.0 million in cash and $415.0 million in newly issued equity shares of Biocon. source
• The Company completed the sale of its equity position in Biocon on July 14, 2026 for pre-tax total consideration of approximately $380 million, and recorded a pre-tax loss of $27.4 million in the third quarter of 2026. source
• In 2026, investing activities included cash proceeds from the CCPS settlement of $400.0 million and capital expenditures primarily for equipment and facilities totaling approximately $92.7 million. source
• The definitive agreements accelerate the expiration of biosimilars non-compete restrictions so they expired immediately at the time of close for all ex-U.S. markets and will expire in November 2026 for the U.S. market. source
• The transaction closed during the first quarter of 2026 and the equity shares of Biocon were subject to a six-month lock up period. source
• For the three and six months ended June 30, 2026, includes a charge of $177.8 million related to the planned sale of the product rights for Tyrvaya®. source
• In connection with the divestitures, Viatris and the respective buyers currently have manufacturing and supply agreements generally for periods between one to 10 years depending on the geographic market and the products subject to such agreement. source
• The pre-tax sale proceeds include the impacts of an approximate 2.7% block sale discount to market, transaction fees, and the strengthening of the U.S. dollar since the Company obtained the equity in January 2026. source

Impact estimates