Indian pharma major, Dr. Reddy's Laboratories Ltd, through its subsidiary has inked an agreement to acquire the US generic prescription product portfolio of the Australia-based, Mayne Pharma Group Limited, for consideration of about $105 million.
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.
The Indian company said the acquired portfolio of the drugs include 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 a total revenue of $111 million for the acquired portfolio.
The value of total addressable market for the pipeline and approved non-marketed products in the US is nearly $3.6 billion for the calendar year ending in December 2022 according to IQVIA, Dr. Reddy's said.
Approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product.
The closing of the transaction is subject to satisfactory completion of customary closing conditions, including the applicable waiting period, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended.
"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," said Marc Kikuchi, Chief Executive Officer, North America business, Dr. Reddy's Laboratories Ltd.
(With inputs from IANS)
