India-based biopharmaceuticals company Biocon Ltd. said it will acquire U.S. listed Viatris Inc.’s biosimilars business in a cash-and-stock deal worth $3.34 billion.
Viatris will receive up to $2.24 billion in cash and another $1 billion worth of compulsorily convertible preference shares in Biocon Biologics Ltd., Biocon said Monday.
The boards of the two companies have approved the transaction.
The deal, which is expected to close in the second half of this year, will be funded through a $800 million equity fund raising and debt.
Biocon Biologics said that it has received interest from financial institutions for debt financing and equity commitments from existing shareholders.
“This transaction will allow Viatris to continue to participate in the global biosimilars space in a more optimized way, while also allowing us to accelerate our own financial priorities,” said Robert J. Coury, Viatris’ Executive Chairman.