The portfolio includes 40 approved off-market products, including approximately 45 commercial products, 4 products in development, and many generic products focused on women’s health.
Dr. Reddy’s Laboratories Ltd said on Monday that its subsidiary had entered into a definitive agreement to acquire the US generic drugs portfolio from Australia-based Mayne Pharma Group Limited for $105 million. The acquisition will allow Dr. to supplement Reddy’s U.S. prescription drug retail business with a limited offering of competing products. He also supports Dr. Reddy’s efforts to accelerate and develop affordable drugs for patients.
“The portfolio includes approximately 45 commercial products, four pipeline products, and 40 approved non-marketed products, including several generic products focused on women’s health,” according to a regulatory filing.
For the fiscal year ending June 30, 2022, Mayne Pharma reported total acquisition portfolio revenue of $111 million. Approved high-value products include hormonal vaginal rings, birth control pills, and cardiovascular products.
Under the terms of the agreement, Dr. Reddy’s will acquire the investment for approximately $90 million in up-front cash, up to $15 million in contingent payments, in consideration for inventory and certain bond credits. accumulated channel to be determined at the closing date. Closing of 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 (HSR Act).
Marc Kikuchi, Chief Executive Officer, of North America business, Dr. Reddy’s, said, “This critical acquisition provides our North American 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 Israel, CEO, Ph.D. Reddy’s said, “The United States has always been an important market for us. The product portfolio acquired from Mayne Pharma is strategically aligned with our growth objectives. The portfolio includes some products with high barriers to entry. It also complements our existing product portfolio by introducing products focused on women’s health. Our strong balance sheet gives us access to strategically important products to strengthen our underlying businesses and build long-term growth.”
According to IQVIA, for the calendar year ending December 2022, the total addressable market value of US pipeline products and approved off-market products is approximately $3.6 billion.