Dr. Reddy’s acquires Mayne Pharma’s US prescription portfolio for $105M to expand market presence
Dr Reddy’s Laboratories Ltd on Monday (February 27) said its subsidiary has entered into a definitive agreement to acquire the US generic prescription product portfolio of Australia-based Mayne Pharma Group Ltd for $105 million. The acquisition is expected to expand and accelerate the availability of affordable medications for patients, while also complementing Dr. Reddy’s U.S. retail prescription pharmaceutical business with limited competition products.
Dr. Reddy’s Laboratories
Pharmaceutical company
- Subsidiaries: betapharm Arzneimittel GmbH, MORE
- Revenue: 17,460 crores INR (US$2.2 billion, 2020)
- CEO: Erez Israeli (1 Aug 2019)
- Founder: Kallam Anji Reddy
- Number of employees: 21,650 (March 2020)
- Founded: 1984
- Headquarters: Hyderabad
According to a press release issued by Dr. Reddy’s, the acquired portfolio includes approximately 45 commercial products, four pipeline products, and 40 approved non-marketed products, with a focus on women’s health.
Under the terms of the agreement, Dr. Reddy’s will acquire the portfolio for an upfront payment of approximately $90 million in cash, with additional contingent payments of up to $15 million. The deal also includes consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date.
Mayne Pharma reported total revenue of $111 million for the acquired portfolio during the financial period ending June 30, 2022. The portfolio includes high-value products such as a hormonal vaginal ring, a birth control pill, and a cardiovascular product.
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 of Dr. Reddy’s, emphasized the strategic importance of the acquisition, stating that the US has always been an important market for the company. He noted that the portfolio of products acquired from Mayne Pharma includes some high entry-barrier products and introduces products focused on women’s health, which will complement the company’s existing portfolio. With a strong balance sheet, Dr. Reddy’s is well-positioned to acquire products of strategic importance to strengthen its base business and build for long-term growth.
According to IQVIA, the estimated value of the total addressable market for pipeline and approved non-marketed products in the United States is around $3.6 billion (USD) for the calendar year ending in December 2022.
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