Viatris: Firm Announces Sale of Noncore Business Lines as Full Focus Returns to Key Drug Areas

No-moat Viatris announced yesterday that it entered into agreements with various buyers to divest an array of its noncore businesses for a total price of $3.6 billion. The firm is selling the majority of its over-the-counter pharmaceutical business to Cooper Consumer Health for up to $2.17 billion as well as an active pharmaceutical ingredient, or API, division to an India-based private pharmaceutical company. Other sales include Duphaston, a treatment for menstrual conditions, and Femoston, which treats symptoms of menopause, to Theramax; oral and injectable women's healthcare pharmaceuticals to Insud Pharma; and divesture of certain noncore assets. Given that Viatris announced these plans last November, we don't see this as an unexpected move, although we are pleasantly surprised at the timing of the announcement.