IQuest Acquires API Arm Of Drugmaker Viatris

In a statement released on Monday, IQuest Enterprises revealed that it is all set to acquire the active pharmaceutical ingredients division of Viatris in India. However, the exact purchase amount has not been disclosed. 

As per the reports, IQuest will acquire six API manufacturing facilities which include three each in Vizag, Hyderabad, a Research and Development facility in Hyderabad, and third-party API sales. Viatris has stated that it will retain specific research and development capabilities within the API sector. 

In a distinct announcement, Viatris disclosed that it has finalised an agreement to sell its API business in India to IQuest enterprises and the expected completion date for this transaction is set for the first quarter of 2024.

"We are excited about our largest investment in the pharmaceutical sector till date. Our investment comes at an opportune time when India is drawing significant attention amongst the global pharma industry," said Gunupati Swathi Reddy, Executive Director IQuest Enterprises.

The API business in India comprises three manufacturing sites and a research laboratory in Hyderabad, along with three manufacturing sites in Visakhapatnam and third-party API sales, according to Viatris. 

The company will retain some research and development (R&D) capabilities in API. Meanwhile, the women's healthcare business, specializing primarily in oral and injectable contraceptives, includes two manufacturing facilities in Gujarat, one in Ahmedabad and one in Sarigam.

In 2015, Mylan acquired the Famy Care women's healthcare business from the Taparia family based in Mumbai for USD 800 million. The plan to sell the women's healthcare business was first reported by Mint on 8th November.

Both transactions, pending regulatory approvals, are anticipated to conclude in the first quarter of 2024.

In February 2022, Viatris sold its local biosimilar business to Biocon Biologics for USD 3.35 billion as part of its strategy to exit various businesses in Europe and other markets, including India. At that time, Viatris had identified non-core opportunities, including the Biocon Biologics deal, which could generate approximately 9 billion in pre-tax proceeds.

The company's statement conveyed that the completion of divestitures would lead to a successful culmination of all Phase 1 efforts and commitments. It indicated a priority to use the net proceeds for debt reduction with the aim of achieving a gross leverage target of 3x by the first half of 2024. 

Additionally, the statement mentioned that this would position the company favorably as it moves forward with its Phase 2 strategy for 2024 and beyond. The company also reported that it had successfully streamlined the organization by focusing on areas with the highest potential for accelerating growth, benefiting patients, and providing value to shareholders.

Viatris received advisory services from the global investment bank Jefferies, which specializes in pharmaceutical deals, and the law firm Saraf and Partners for this transaction.