viatris: Matrix Prasad’s Iquest Enterprises buys Viatris India API business

Viatris Inc. (formerly Mylan Inc.), a global healthcare company, will sell its Active Pharmaceutical Ingredients (API) business in India to Hyderabad based Iquest Enterprises, stated a company statement.

Iquest Enterprises is owned by Nimmagadda Prasad, Andhra Pradesh based industrialist and founder of Matrix Laboratories.

Prasad had sold his API manufacturing company Matrix to Mylan in 2007 which was rebranded as Viatris later.

Viatris’ latest transaction includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris will retain some selective R&D capabilities in API. The transaction is expected to close in Q1 2024, added Viatris’ statement.

Last year, Viatris has put its non-core India businesses including API business and women’s healthcare business Famy Care up for sale. However, the API sale process has seen no serious buyers, ET reported in March.

The company has been seeking a valuation of $600-700 million (Rs5000 crore) for the API business, and hired Jefferies to run the sale process, ET reported.In 2019, Mylan N.V. and Upjohn, a division of Pfizer, were merged to form Viatris. Earlier in 2015, Mylan had acquired women’s healthcare businesses Famy Care Ltd from Taparia family for $800 million as part of expanding its women care portfolio. Viatris’ API business has a high exposure towards antiretroviral (ARV for HIV/ AIDS) sector which see a very low volume of sale.Commenting on the development, Gunupati Swathi Reddy (daughter of Mr. Nimmagadda Prasad), Executive Director, IQuest Enterprises said, “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. It is also a happy homecoming, in more ways than one, for some of us who have been part of the journey over the last two decades.”

Nimmagadda Prasad, known as ‘Matrix Prasad,’ is an accused in the corruption cases being probed against Andhra Pradesh Chief Minister Jagan Mohan Reddy by Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), related to the Vadarevu-Nizampatnam Port and Industrial Corridor (Vanpic) project.

He was detained in Serbia in August 2019, reportedly based on a complaint by the government of Ras Al Khaimah (RAK) in the United Arab Emirates (UAE) in connection with Vanpic project, a joint venture between the Ras Al Khaimah Investment Authority and Hyderabad-based Matrix Enport Holdings.

Viatris’ net sales from emerging markets decreased by $529 million or 17% for the year ended December 31, 2022 when compared to the prior year. This decrease was primarily driven by lower volumes of COVID-19 related products in India, primarily remdesivir and ambisome, and lower sales of ARV products as a result of competitive market conditions. These decreases were partially offset by higher volumes in certain markets in Asia, according to recent company report.

Viatris has also executed an agreement to divest its Women’s Healthcare business, primarily related to oral and injectable contraceptives, to Insud Pharma, a leading Spanish multinational pharmaceutical company. The transaction includes two manufacturing facilities in India: one in Ahmedabad and one in Sarigam, said the statement.