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viatris: Matrix Laboratories founder buys back API Biz from Viatris


Nimmagadda Prasad, founder of Matrix Laboratories, has bought back the active pharmaceutical ingredients (API) business he had sold to Mylan NV (now Viatris) in 2006 for an undisclosed amount.

The acquisition was done through IQuest Enterprises, owned by Prasad, according to a statement released by US-based Viatris on Monday. Viatris’ latest transaction includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag, and third-party API sales. The company will retain some selective R&D capabilities in API. The deal is expected to close in Q1 of 2024, according to the statement.

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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.

The total deal size of API & women’s health business stood at approximately $1.2 billion, said the release.

Matrix Laboratories Founder Buys Back API Biz from ViatrisET Bureau

Last year, Viatris put its non-core India businesses, including the API business and women’s healthcare business Famy Care up for sale. However, the API sale process has seen no serious buyers, ET had reported in March. The company has been seeking a valuation of $600-$700 million (₹5,000 crore) for the API business, and hired Jefferies to run the sale process, ET had reported earlier.

In 2019, Mylan NV and Upjohn, a division of Pfizer, were merged to form Viatris. In 2015, Mylan had acquired women’s healthcare businesses Famy Care from the Taparia family for $800 million as part of a move to expand its women care portfolio.

Viatris’ API business has a high exposure towards the antiretroviral (ARV for HIV/ AIDS) sector which sees very low volume of sales.

“Our investment comes at an opportune time when India is drawing significant attention amongst the global pharma industry,” said Gunupati Swathi Reddy, daughter of Nimmagadda Prasad and executive director of IQuest Enterprises. “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.”

Prasad is sometimes fondly referred to as “Matrix” Prasad.

Viatris’ net sales from emerging markets decreased by $529 million, or 17%, for the year ended December 31, 2022, when compared with the previous year. This decrease was primarily because of 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 a recent company report.


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