Viatris To Divest OTC, Women's Healthcare, And API Businesses In Strategic Move, For Up To $6.94B Of Total Gross Proceeds
Portfolio Pulse from Benzinga Newsdesk
Viatris plans to divest its OTC, Women's Healthcare, and API businesses in a strategic move that could yield up to $6.94B in total gross proceeds. The company will retain rights for Viagra®, Dymista® and select OTC products in certain markets, representing about $1.6B in estimated retained value. The divestitures, expected to close by H1 2024, will result in up to 12 facilities and over 6,000 employees, or about 15% of the company's global workforce, being conveyed. The proceeds will be used for debt paydown to reach a gross leverage target of 3.0x in H1 2024.
October 02, 2023 | 7:07 am
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Viatris' divestiture of its OTC, Women's Healthcare, and API businesses could yield up to $6.94B, which will be used for debt reduction. The company will retain rights for certain products, representing about $1.6B in estimated retained value.
The divestiture will provide Viatris with significant capital, which will be used to reduce its debt. This could strengthen the company's financial position and potentially boost investor confidence. However, the divestiture will also result in a reduction of the company's workforce and facilities, which could impact its operational capabilities.
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