Viatris completes $3.37 billion in divestitures with an OTC transaction

Viatris has concluded a major transaction to sell its over-the-counter (OTC) business, marking the final phase of its $3.37 billion divestiture plan.

The US-based pharmaceutical company sold its entire OTC business to Cooper Consumer Health, a European OTC drug manufacturer, on July 3. Through this deal, Cooper Consumer Health acquired two manufacturing facilities in Merignac, France, and Confienza, Italy, along with a research and development site in Monza, Italy. However, Viatris retained rights to its major generic drugs Viagra (sildenafil) and Dymista (azelastine hydrochloride and fluticasone propionate), as well as certain other OTC treatments.

In October 2023, Viatris initially announced plans to divest various parts of its business. Since then, Matrix Pharma Private has acquired Viatris’ active pharmaceutical ingredients division, and Insud Pharma, a Spanish pharmaceutical company, has taken over Viatris’ women’s health business, including two manufacturing plants in India.

Moreover, a definitive agreement in December 2023 transferred Viatris’ European rights for therapies like Duphaston (dydrogesterone) and Femoston (estradiol) to Theramex. Viatris also sold commercialization rights in some non-core markets, assets it had acquired during the merger of Mylan and UpJohn.

According to a press release on July 3, Viatris executed these divestitures to achieve its long-term financial targets and enhance shareholder returns through share buybacks and dividends. The company plans to reinvest the proceeds into acquiring, developing, and commercializing new therapies. Last year, Viatris reported total revenue of $15.4 billion and a free cash flow of $2.4 billion. By January 28, 2024, it had already completed $250 million in share repurchases for the year.