Indian pharmaceutical firm Dr. Reddy’s Laboratories has signed a definitive agreement with Australia-based Mayne Pharma Group to acquire the latter’s US generic prescription product portfolio.
Under the terms of the agreement, the Indian pharmaceutical company will acquire the portfolio for an upfront payment of around $90m in cash.
It will also make contingent payments of up to $15m, towards inventory and credits for certain accrued channel liabilities to be determined on the closing date.
The portfolio to be acquired comprises around 45 commercial products, four pipeline products and 40 regulatory-approved non-marketed products.
It also includes several generic products focused on women’s health, including a hormonal vaginal ring, a birth control pill, and a cardiovascular product.
Dr. Reddy’s chief executive officer Erez Israeli said: “The US has always been an important market for us. The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives.
“The portfolio includes some high entry-barrier products. It also complements our existing portfolio by introducing products focused on women’s health.
“Our strong balance sheet enables us to acquire products of strategic importance to strengthen our base business and build for long-term growth.”
Mayne Pharma is a speciality pharmaceutical company focused on commercialising novel and generic pharmaceuticals.
The company’s portfolio of generic medicines, which is currently being acquired, has generated total revenue of $111m, for the financial period ended 30 June 2022.
The transaction is expected to be closed subject to the satisfactory completion of customary closing conditions including the waiting period under the Hart-Scott-Rodino Antitrust Act.
Dr. Reddy’s said that the acquisition will add limited competition products to its US retail prescription pharmaceutical business, and supports its efforts to offer affordable medications for patients.
Dr. Reddy’s North America business chief executive officer Marc Kikuchi said: “This important acquisition provides our North America organisation with a significant foothold in the women’s health space.
“The acquisition is in line with our stated strategy to enhance our portfolio in our chosen growth markets. We are well-positioned to successfully integrate the portfolio and grow the business.”
