Achievement of This Major Milestone Further
Simplifies and Strengthens the Company and Positions Viatris to
Achieve its Key Priorities and Accelerate Future Growth
PITTSBURGH, July 3, 2024
/PRNewswire/ -- Viatris Inc. (NASDAQ: VTRS), a global
healthcare company, today announced that it has closed the
divestiture of its Over-the-Counter (OTC) business to Cooper
Consumer Health, a leading European over-the-counter drug
manufacturer and distributor, bringing to substantial
completion all previously announced divestitures.
In October, the Company announced it had entered into agreements
to divest substantially all of its OTC business, as well as its
Women's Healthcare business, its Active Pharmaceutical Ingredients
(API) business in India and
commercialization rights in certain non-core markets.
The completion of the OTC divestiture, the largest of the
divestitures that the Company previously announced, is a major
milestone in the execution of the Company's strategic plan to
considerably simplify the organization in order to increase focus
on areas with the greatest potential to accelerate growth, patient
impact and shareholder value. The Company believes it found the
right fit and future owners for all these well-performing
businesses and has been committed to ensuring a successful
transition for colleagues, partners, customers and patients.
The Company reiterated that the proceeds from its divestitures
and its sector-leading cash flow generation gives it line of sight
to achieving its key priorities, including: achieving its long-term
gross leverage target, increasing shareholder return through share
buybacks and dividends, fueling its base business and, importantly,
making disciplined, strategic investments to identify, acquire,
develop and commercialize innovative assets that can build off its
very strong base business and drive future revenue growth.
"Closing the divestiture of our OTC business is a significant
milestone in the execution of our strategic plan," said
Scott A. Smith, Chief
Executive Officer, Viatris. "With all our previously announced
divestitures now substantially complete, Viatris is stronger and
more streamlined. We look forward to an exciting future in which we
continue to build on our very strong base business and add to our
innovative product pipeline to drive strong future revenue growth
and positively affect even more patients' lives worldwide."
Divestitures Summary
Viatris divested
substantially all of its OTC business to Cooper Consumer Health, a
leading European over-the-counter drug manufacturer and
distributor. The transaction includes two manufacturing sites
located in Merignac, France, and Confienza, Italy, and a
Research & Development site in Monza, Italy. The Company
is retaining rights for Viagra®, Dymista® and select OTC products
in certain markets. The transaction closed on July 3, 2024.
Viatris previously announced that it has divested its API
business in India to Matrix Pharma
Private Limited. The transaction includes three manufacturing sites
and an R&D lab in Hyderabad,
three manufacturing sites in Vizag and third-party API sales.
Viatris is retaining some selective R&D capabilities in API.
The transaction closed in June
2024.
Viatris previously announced that it has divested its Women's
Healthcare business, primarily related to oral and injectable
contraceptives, to Insud Pharma, a leading Spanish multinational
pharmaceutical company. The transaction includes two manufacturing
facilities in India: one in
Ahmedabad and one in Sarigam. The transaction closed in
March 2024.
Separately, in another transaction, Viatris previously announced
it has divested its rights to women's healthcare products
Duphaston® and Femoston® in certain countries to Theramex HQ UK
Limited, a leading global specialty pharmaceutical company
dedicated to women's health. The transaction (other than in the
U.K., which remains subject to regulatory approval) closed in
December 2023.
As previously indicated, Viatris' next update with respect to
2024 financial guidance will reflect the impact of the OTC
divestiture, including adjustments to exclude the expected
performance of the OTC business from the closing date of the
transaction through the end of 2024.
About Viatris
Viatris Inc. (NASDAQ: VTRS) is a global
healthcare company uniquely positioned to bridge the traditional
divide between generics and brands, combining the best of both to
more holistically address healthcare needs globally. With a mission
to empower people worldwide to live healthier at every stage of
life, we provide access at scale, currently supplying high-quality
medicines to approximately 1 billion patients around the world
annually and touching all of life's moments, from birth to the end
of life, acute conditions to chronic diseases. With our
exceptionally extensive and diverse portfolio of medicines, a
one-of-a-kind global supply chain designed to reach more people
when and where they need them, and the scientific expertise to
address some of the world's most enduring health challenges, access
takes on deep meaning at Viatris. We are headquartered in the U.S.,
with global centers in Pittsburgh,
Shanghai and Hyderabad, India. Learn more
at viatris.com and investor.viatris.com, and connect with
us on LinkedIn, Instagram, YouTube and X (formerly
Twitter).
Forward-Looking Statements
This press release includes
statements that constitute "forward-looking statements." These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such forward
looking statements may include statements that achievement of this
major milestone further simplifies and strengthens the Company and
positions Viatris to achieve its key priorities and accelerate
future growth; the completion of the OTC divestiture is a major
milestone in the execution of the Company's strategic plan to
considerably simplify the organization in order to increase focus
on areas with the greatest potential to accelerate growth, patient
impact and shareholder value; the Company believes it found the
right fit and future owners for all these well-performing
businesses and has been committed to ensuring a successful
transition for colleagues, partners, customers and patients; the
proceeds from its divestitures and its sector-leading cash flow
generation gives it line of sight to achieving its key priorities,
including: achieving its long-term gross leverage target,
increasing shareholder return through share buybacks and dividends,
fueling its base business and, importantly, making disciplined,
strategic investments to identify, acquire, develop and
commercialize innovative assets that can build off its very strong
base business and drive future revenue growth; we look forward to
an exciting future in which we continue to build on our very strong
base business and add to our innovative product pipeline to drive
strong future revenue growth and positively affect even more
patients' lives worldwide; as previously indicated, Viatris' next
update with respect to 2024 financial guidance will reflect the
impact of the OTC divestiture, including adjustments to exclude the
expected performance of the OTC business from the closing date of
the transaction through the end of 2024. Because forward-looking
statements inherently involve risks and uncertainties, actual
future results may differ materially from those expressed or
implied by such forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to: actions and decisions of healthcare and pharmaceutical
regulators; changes in healthcare and pharmaceutical laws and
regulations in the U.S. and abroad; any regulatory, legal or other
impediments to Viatris' ability to bring new products to market,
including but not limited to "at-risk" launches; Viatris' or its
partners' ability to develop, manufacture, and commercialize
products; the scope, timing and outcome of any ongoing legal
proceedings, and the impact of any such proceedings; the
possibility that Viatris may be unable to realize the intended
benefits of, or achieve the intended goals or outlooks with respect
to, its strategic initiatives; the possibility that Viatris may be
unable to achieve intended or expected benefits, goals, outlooks,
synergies, growth opportunities and operating efficiencies in
connection with divestitures, acquisitions, other transactions or
restructuring programs, within the expected timeframes or at all;
goodwill or impairment charges or other losses related to the
divestiture or sale of businesses or assets; Viatris' failure to
achieve expected or targeted future financial and operating
performance and results; the potential impact of public health
outbreaks, epidemics and pandemics; any significant breach of data
security or data privacy or disruptions to our information
technology systems; risks associated with international operations;
the ability to protect intellectual property and preserve
intellectual property rights; changes in third-party relationships;
the effect of any changes in Viatris' or its partners' customer and
supplier relationships and customer purchasing patterns; the
impacts of competition; changes in the economic and financial
conditions of Viatris or its partners; uncertainties and matters
beyond the control of management, including general economic
conditions, inflation and exchange rates; failure to execute stock
repurchases consistent with current expectations; stock price
volatility; and the other risks described in Viatris' filings with
the Securities and Exchange Commission (SEC). Viatris routinely
uses its website as a means of disclosing material information to
the public in a broad, non-exclusionary manner for purposes of the
SEC's Regulation Fair Disclosure (Reg FD). Viatris undertakes no
obligation to update these statements for revisions or changes
after the date of this press release other than as required by
law.
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SOURCE Viatris Inc.