Dr Reddy’s Laboratories (DRL) has signed a definitive agreement to acquire the US generic prescription product portfolio of Australia-based Mayne Pharma Group for $90 million (Rs 738 crore) in cash up front and up to $15 million in contingent payments (Rs 123 crore). The acquisition will provide limited competition products to DRL’s US retail prescription pharmaceutical business. According to IQVIA, the total addressable market in the United States for pipeline and approved non-marketed products is approximately $3.6 billion for the calendar year ending December 2022.
DRL SA, a wholly-owned subsidiary of Hyderabad-based DRL, is set to acquire Mayne Pharma Group’s US generic prescription product portfolio from Salisbury, Australia. The portfolio consists of approximately 45 commercial products, four pipeline products, and 40 approved non-marketed products, including a number of generic products aimed specifically at women’s health. Mayne Pharma reported total revenue of $111 million for the acquired portfolio for the fiscal period ended June 30, 2022.
A hormonal vaginal ring, a birth control pill, and a cardiovascular product are among the approved high-value products. “Under the terms of the agreement, DRL will acquire the portfolio for an initial cash payment of approximately $90 million, contingent payments of up to $15 million, consideration for inventory, and credits for certain accrued channel liabilities to be determined on the closing date,” the company said in a statement. During its third-quarter earnings call, the company stated that it is not looking to make large acquisitions, but rather to acquire complementary products or companies.
“This important acquisition provides our North America organisation with a significant foothold in the women’s health space,” said Marc Kikuchi, Chief Executive Officer, DRL’s North America business. The acquisition is consistent with our stated strategy of expanding our portfolio in our targeted growth markets. We are well-positioned to integrate the portfolio and grow the business.”