Viatris Considers Sale of $3bn European OTC Assets

Viatris is considering a potential sale of its consumer-health assets in Europe, in a deal that could fetch more than $3bn for the US drugmaker, according to people familiar with the matter.

The Canonsburg, Pennsylvania-based company is working with investment bank Jefferies Financial Group Inc. as it seeks to identify potential suitors for the business, the people said, asking not to be identified as the matter is private.

The assets could draw interest from large private equity firms that have existing over-the-counter businesses or strategic suitors that are seeking to grow their business in the region, the people said.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Shares in Viatris rose as much as 4.7% on Tuesday. The stock was up 4.5% at 10:37 a.m. in New York, giving the company a market value of $11 billion.

Deliberations are ongoing and no final decisions have been made, the people said. A representative for Viatris didn’t respond to requests for comment, while a spokesperson for Jefferies didn’t immediately provide comment.

Pharmaceutical companies are increasingly spinning off or seeking to sell their over-the-counter assets to focus on more high-margin areas such as oncology and treatments for rare diseases. GSK Plc carved out its consumer unit into a separate company earlier in the year, while rival Sanofi has been discussing options for its consumer health business.

Viatris was created from the merger of Mylan NV and Pfizer Inc’s Upjohn unit in 2020. It is known for its off-patent blockbuster brands such as cholesterol-buster Lipitor, erectile-dysfunction drug Viagra and antidepressant Zoloft. Its lesser-known, over-the-counter products include dietary supplements, like iron, allergy medicines and cosmetics.

Source: BNN Bloomberg

Can’t stop reading? Read more