Advent International’s Zentiva generics business and Bain Capital-backed drugmaker Stada Arzneimittel AG are suitors considering bids for for Viatris Inc.’s European consumer-health assets, people familiar with the matter said.
(Bloomberg) — Advent International’s Zentiva generics business and Bain Capital-backed drugmaker Stada Arzneimittel AG are suitors considering bids for for Viatris Inc.’s European consumer-health assets, people familiar with the matter said.
The portfolio is also attracting potential interest from CVC Capital Partners, the owner of Cooper Consumer Health, as well as TPG Inc., which controls iNova Pharmaceuticals, the people said. The possible sale could fetch about €3 billion ($3.2 billion), according to the people, who asked not to be identified because the information is private.
Viatris has asked for preliminary offers for the business in February, the people said. Some of the suitors are only keen on parts of the portfolio and not the entire business, the people said.
No final decisions have been made, and there’s no certainty the potential bidders will proceed with offers, the people said. Representatives for the buyout firms and Stada declined to comment, while a spokesperson for Viatris didn’t immediately respond to emailed queries.
Canonsburg, Pennsylvania-based Viatris is working with Jefferies Financial Group Inc. as it seeks to identify potential suitors for the business, Bloomberg News reported in October. The company has announced plans to reshape its business, divesting units that it said could bring as much as $6 billion in pretax cash proceeds while acquiring two ophthalmology businesses.
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 last year, while rival Sanofi has been discussing options for its consumer health business.
The potential sale of Viatris assets comes at a time when buyout firms are struggling to raise financing for larger deals, with banks increasingly skittish amid rising rates and a slowing economy.
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, allergy medicines and cosmetics.
The value of deals involving health-care products and pharmaceuticals companies is up 22.4% this year at almost $28 billion, according to data compiled by Bloomberg, bucking a broader drop off in mergers and acquisitions. February has already seen some big transactions in the sector, including CVS Health Corp.’s purchase of Oak Street Health Inc. in a $10.6 billion deal.
–With assistance from Eyk Henning.
(Adds M&A data in final paragraph.)
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