INDIA – Dr. Reddy’s Laboratories has struck a deal to buy the generic prescription product portfolio of Mayne Pharma Group Limited in the United States for up to US$150 million.
Under the definitive agreement, Dr. Reddy’s will acquire Mayne Pharma’s U.S. generic drug business for an upfront payment of approximately US$90 million in cash and contingent payments of up to US$15 million.
The divestiture supports Mayne Pharma’s efforts to accelerate its transformation into a specialty pharmaceutical company with leading positions in women’s health and dermatology.
Dr. Reddy’s will gain exclusive distribution rights for approximately 45 commercial products, four pipeline products, and 40 approved non-marketed products as part of the planned acquisition.
The drug maker will also gain full access to Mayne Pharma’s high-value products focused on women’s health such as a hormonal vaginal ring, a birth control pill, and a cardiovascular product.
“This important acquisition provides our North America organization with a significant foothold in the women’s health space,” Marc Kikuchi, Chief Executive Officer of Dr. Reddy’s in North America, said in a statement.
“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,” noted Kikuchi.
The acquisition will complement Dr. Reddy’s in-house efforts to expand its retail prescription pharmaceutical business in the United States to include limited-competition products.
The multinational pharmaceutical company recently expanded its portfolio of generic products in the U.S. with the launch of its Difluprednate Ophthalmic Emulsion at 0.05%.
Commenting on the acquisition, Erez Israeli, Chief Executive Officer of Dr. Reddy’s, said: “The U.S. has always been an important market for us. The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives.”
He outlined that through Mayne Pharma, the Indian drug major will acquire high entry-barrier products, noting that it will further strengthen Dr. Reddy’s 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,” added Erez Israeli.
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