Dr. Reddy’s acquiring Mayne Pharma’s U.S. generic portfolio for $90 million

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Pharma major Dr. Reddy’s Laboratories is acquiring the U.S. generic prescription product portfolio of Australia’s Mayne Pharma Group for an upfront cash consideration of around $90 million.

The portfolio includes 45 commercial products, four pipeline products and 40 approved non-marketed products, including generic products focussed on women’s health. For the financial period ended June 30, 2022, Mayne Pharma had reported $111 million a revenue for the portfolio being acquired.

Dr. Reddy’s wholly-owned subsidiary Dr. Reddy’s Laboratories SA has entered into a definitive agreement to acquire the portfolio from the Salisbury, Australia-based Mayne Pharma Group. In addition to $90 million upfront payment, the terms of agreement involve contingent payments by Dr. Reddy’s of up to $15 million, consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date. Closing of the transaction is subject to satisfactory completion of customary closing conditions, the Hyderabad-headquartered drugmaker said on Monday, February 27.

A hormonal contraceptive, birth control pill and cardiovascular product are part of the approved high-value products. The value of total addressable market for the pipeline and approved non-marketed products in the U.S. is approximately $3.6 billion for the calendar year ended December 2022, Dr. Reddy’s said citing IQVIA numbers.

“The U.S. has always been an important market for us… portfolio being acquired includes some high entry-barrier products. Our strong balance sheet enables us to acquire products of strategic importance to strengthen our base business and build for long-term growth, CEO Erez Israeli said.

The acquisition will complement its U.S. retail prescription pharmaceutical business with limited competition products. CEO, North America business of Dr. Reddy’s Marc Kikuchi it will provide a significant foothold in the women’s health space.