Viatris to divest some businesses for nearly £3 billion

Drugmaker Viatris said on Sunday (October 1) it had reached agreements to divest some of its businesses for a total of about £2.9 billion.

Viatris said its move to divest some of its businesses is part of its long-term strategy to streamline focus on three core therapeutic areas - ophthalmology, gastroenterology and dermatology.

The company has received an offer of about $2.17 billion (£1.78 billion) for almost all of its over-the-counter drug business from France-based Cooper Consumer Health. Viatris will retain rights for erectile dysfunction drug Viagra, nasal spray Dymista and select OTC drugs within certain markets.

Separately, the drugmaker said it has agreed to sell its women's healthcare business to Spanish pharmaceutical company Insud Pharma, while its active pharmaceutical ingredients business in India will be sold to Iquest Enterprises. Both divestitures would result in about $1.2 billion (£987 million) in proceeds.

Viatris was formed through the merger of Mylan and Pfizer Inc's Upjohn business and deals with generic and key branded drugs in its portfolio, including arthritis treatment Celebrex, erectile dysfunction drug Viagra, epilepsy treatment Lyrica, and antidepressant Zoloft.

The company will also sell its rights to women's healthcare products Duphaston and Femoston to London-based Theramex. It will also be divesting commercialization rights in certain non-core markets it acquired as part of the combination with Upjohn.

Viatris had divested its biosimilar business in the early part of last year. Including that deal and the latest divestitures, the company would receive about $6.94 billion (£5.70 billion) in proceeds.