Viatris (NASDAQ: VTRS) shares skidded 24% yesterday to $11.01 after announcing it would sell its biosimilars portfolio to Biocon Biologics for as much as $3.335 billion.
The former company unveiled the news when announcing its fourth-quarter earnings. Viatris will pay $2 billion upfront, $1 billion in convertible preferred equity, and $335 million in additional payments as part of the transaction.
Viatris was created in 2020 as the merger of Mylan and Pfizer’s Upjohn unit.
The company plans to sell a number of assets that could generate up to $6 billion in pretax proceeds by the end of 2023.
In related news, Viatris also announced plans to settle litigation related to the EpiPen auto-injector for $264 million. A judge still must sign off on the proposed settlement.
The litigation relates to lawsuits filed against the Viatris predecessor company Mylan, accusing the company of raising the prices of the EpiPen from $100 to $608.
VTRS shares fell an additional 7.81% to $10.15 today.