Dr Reddy's Laboratories Ltd announced on Monday that its subsidiary has entered into a definitive agreement to acquire Australia-based Mayne Pharma Group Limited's US generic prescription product portfolio for USD 105 million. According to a press release from Dr. Reddy's, the portfolio includes 45 commercial products, four pipeline products, and 40 approved non-marketed products, including a number of generic products focused on women's health.
Dr Reddy's will acquire the portfolio for an upfront payment of approximately USD 90 million in cash, contingent payments of up to USD 15 million, consideration for inventory, and credits for certain accrued channel liabilities to be determined on the closing date, according to the terms of the agreement.
Mayne Pharma reported total revenue of USD 111 million (USD) for the acquired portfolio for the fiscal period ended June 30, 2022.
A hormonal vaginal ring, a birth control pill, and a cardiovascular product are among the approved high-value products.
The transaction is subject to the satisfaction of customary closing conditions, including the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
The acquisition will provide limited competition products to Dr. Reddy's US retail prescription pharmaceutical business. It also supports Dr. Reddy's efforts to accelerate and expand access to affordable medications for patients, according to the release.
Marc Kikuchi, Chief Executive Officer, North America business, Dr Reddy's, 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."
Erez Israeli, Chief Executive Officer, Dr Reddy's, said, "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."
According to IQVIA, the total addressable market for pipeline and approved non-marketed products in the United States for the calendar year ending December 2022 is approximately USD 3.6 billion.