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Viatris (formerly known as Mylan Inc) has finalised two deals in India to divest its API (active pharmaceutical ingredients) and women's healthcare businesses for a combined consideration of around $1.2 billion, the healthcare company said on Monday.

The United States-headquartered global healdthcare company has centres in Pittsburgh, Shanghai, and Hyderabad.

Viatris has executed an agreement to divest its API business in India to Iquest Enterprises, a Hyderabad-based pharmaceutical company owned by Nimmagadda Prasad, the founder of Matrix Laboratories.

The transaction includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. However, Viatris will retain some selective R&D capabilities in API.

The women's healthcare business, which primarily relates to oral and injectable contraceptives, has been sold to Insud Pharma, a leading Spanish multinational pharmaceutical company. The deal includes two manufacturing facilities in India: one in Ahmedabad and the other in Sarigam.

Both the India deals are expected to close in Q1 2024, according to the Viatris statement. Jefferies and law firm Saraf & Partners were the advisors for the deal.

Viatris has also sold its OTC (over- the- counter) business in Europe and commercialisation rights in a few non-core markets as part of a global divestiture drive to pare debt.

"With this announcement the company has delivered its commitment to announce agreements on all planned divestitures by the end of 2023 within the company's previously communicated range, after considering the estimated retained value," the Viatris statement read.

"Including gross proceeds from the company's completed biosimilars divestiture, the company expects to realize gross proceeds representing a multiple above 12x on 2022 estimated adjusted EBITDA for its portfolio of divested assets.

“The gross proceeds to the company from all divestitures under the terms of the agreements are up to $6.94 billion, or up to approximately $5.2 billion in estimated aggregate net proceeds, taking into consideration taxes and other costs, including related transaction costs," the statement added.