Viatris Brings to Completion All Previously Announced Divestitures With the Closing of its Over-the-Counter Business Divestiture
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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