Wednesday Mar 29, 2023

Mayne Pharma’s U.S. Generic Prescription Product Portfolio Will Be Acquired by Dr. Reddy’s Laboratories

Mayne Pharma's U.S. Generic Prescription Product Portfolio Will Be Acquired by Dr. Reddy's Laboratories

As per the press release it was announced, the generic prescription portfolio of Salisbury, Australia, based Mayne Pharma Group Limited, will be acquired by Dr. Reddy’s Laboratories, Inc. This is a wholly owned subsidiary of Dr. Reddy’s Laboratories Ltd., USA.

The acquisition will add products with little competition to Dr. Reddy’s U.S. retail prescriptive pharmaceutical business. Additionally, it helps the companies expected growth in order to speed up their patient-affordable pharmaceuticals portfolio.

The portfolio consists of 40 licensed non-marketed medicines, four pipeline products, and 45 commercial products, along with several generic medications with a women’s health focus. For the fiscal year that ended June 30, 2022, Mayne Pharma recorded sales income for the acquired portfolio of $111 million (USD). A chemical vaginal ring, a contraception pill, and a cardiology product are among the high-value goods that have been approved. As per IQVIA, the typical target market for authorized but unmarketed products in the pipeline is expected to be worth $3.6 billion (USD) in the United States for the financial year ending in December 2022.

Dr. Reddy’s will purchase the portfolio in line with the conditions of the agreement for an upfront payment of approximately $90 million (USD), contingent payouts of up to $15 million (USD), consideration for the stockpile, and credits for several accrued channel obligations that will be determined on the termination date. The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended, appropriate time limit, and other customary closing conditions must all be satisfied before the deal can close.

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