Dr. Reddy’s Laboratories announces agreement to acquire
Mayne Pharma’s U.S. generic prescription product portfolio
Telugu Super News,India,February 27, 2023:Dr. Reddy’s Laboratories SA, wholly-owned subsidiary of Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY, along with its subsidiaries together referred to as “Dr. Reddy’s”) today announced that it has entered into a definitive agreement to acquire the U.S. generic prescription product portfolio of Salisbury, Australia, based Mayne Pharma Group Limited (ASX: MYX).
The portfolio includes approximately 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 total revenue of $111 million (USD) for the acquired portfolio. Approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product. Under the terms of the agreement, Dr. Reddy’s will acquire the portfolio for an upfront payment of approximately $90 million (USD) in cash, contingent payments of up to $15 million (USD), consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date. 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.
The acquisition will complement Dr. Reddy’s U.S. retail prescription pharmaceutical business with limited competition products. It also supports Dr. Reddy’s efforts to accelerate and expand affordable medications for patients.
Marc Kikuchi, Chief Executive Officer, North America business, Dr. Reddy’s, said, “This important acquisition provides our North America organization 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 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. 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.”
The value of total addressable market for the pipeline and approved non-marketed products in the U.S. is approximately $3.6 billion (USD) for the calendar year ending in December 2022 according to IQVIA.
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