Viatris Inc. has entered into definitive agreements with Biocon Limited for the sale of its full equity stake in Biocon Biologics Limited, marking a major strategic move as the company continues reshaping its global portfolio. Under the agreements announced today, Biocon will acquire all of Viatris’ convertible preferred equity in Biocon Biologics for a total consideration of $815 million, combining $400 million in cash and $415 million in newly issued equity shares of Biocon.
The transaction underscores Viatris’ effort to streamline operations and regain broader access to the high-growth biosimilars market. The newly issued Biocon equity shares received by Viatris will be listed and traded on India’s National Stock Exchange, though they will be subject to a six-month lock-up period. The transaction value will also be subject to applicable taxes.
Scott A. Smith, Chief Executive Officer of Viatris, described the agreement as a meaningful milestone in the company’s ongoing transformation. “This agreement is another important step in Viatris’ evolution,” Smith said. “Monetizing the value of our equity stake in Biocon Biologics and regaining access to the biosimilars market globally provides significant additional optionality as we continue to build a portfolio of generics, established brands and innovative brands that can contribute to our future growth.”
Beyond monetizing its equity holding, Viatris stands to gain significant strategic freedom through the accelerated expiration of previous biosimilars non-compete restrictions. These restrictions were originally introduced in 2022 when Viatris divested its biosimilars portfolio and related commercial capabilities to Biocon Biologics. Under the new agreements, the non-compete limitations will now expire immediately upon transaction closing for all ex-U.S. markets, allowing Viatris to re-enter those markets without delay. In the United States, the restrictions will expire in November 2026, earlier than previously agreed.
The ability to re-engage in the biosimilars sector—which remains one of the fastest-growing segments within global pharmaceuticals—provides Viatris with new strategic options. The company has signaled its intention to build a balanced portfolio encompassing generics, established brands, and innovative therapies that drive long-term sustainability and growth.
The transaction is expected to close in Q1 2026, contingent on regulatory approvals and customary closing conditions. Financial advisory support for Viatris is being provided by Citi, while legal counsel is being handled by Cravath, Swaine & Moore LLP and India-based Khaitan & Co.
For Biocon, one of India’s major biotechnology players, the agreement consolidates full ownership of its biosimilars business and simplifies its capital structure as it seeks to expand its footprint in regulated markets. For Viatris, the deal provides a substantial influx of capital and returns access to a critical therapeutic category at a pivotal moment in its corporate reinvention.
The move is widely viewed as a strategically aligned step for both companies, positioning Viatris to pursue new opportunities in biosimilars and enabling Biocon to fully integrate and advance its biologics ambitions globally.