DRL arm to acquire certain products of Australia-based Mayne Pharma Group
According to Dr. Reddy's, $90 million will be paid upfront in cash and there will be contingent payments of up to $15 million, towards inventory and credits for certain accrued channel liabilities to be determined on the closing date.
Hyderabad: Dr. Reddy’s Laboratories SA, a wholly-owned subsidiary of Dr Reddy’s Laboratories (DRL), announced that it has entered into a definitive agreement to acquire the US generic prescription product portfolio of Australia-based Mayne Pharma Group Limited. The portfolio includes approximately 45 commercial products, four pipeline products and 40 approved non-marketed products, including a number of generic products focused on women’s health.
For the financial period ended June 30, 2022, Mayne Pharma reported total revenue of $111 million for the acquired portfolio. Approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product.
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Under the terms of the agreement, DRL will acquire the portfolio for an upfront payment of approximately $90 million in cash, contingent payments of up to $15 million, consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date.
The acquisition will complement DRL’s US retail prescription pharmaceutical business with limited competition products. It also supports its efforts to accelerate and expand affordable medications for patients.
“This acquisition provides our North America organisation with a significant foothold in the women’s health space. The acquisition is in line with our strategy to enhance our portfolio. We are positioned to integrate the portfolio and grow the business,” said Marc Kikuchi, Chief Executive Officer, North America business, Dr Reddy’s.
“The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives and includes some high entry-barrier products. It also complements our existing portfolio by introducing products focused on women’s health,” said Erez Israeli, Chief Executive Officer, DRL.
The value of total addressable market for the pipeline and approved non-marketed products in the US is approximately $3.6 billion for the calendar year ending in December 2022, it said in a release.
