Mayne Pharma’s U.S. generic prescription product portfolio to be acquired by Dr. Reddy Laboratories

The U.S. generic prescription pharmaceutical portfolio of Mayne Pharma Group Ltd, located in Salisbury, Australia, will be acquired by Dr. Reddy’s Laboratories SA, a wholly-owned subsidiary of Dr. Reddy’s Laboratories, according to a statement released.

The portfolio consists of about 45 commercial items, four products in the pipeline, and 40 authorized but unmarketed products, including a number of generic goods with a female health focus.

In accordance with the terms of the contract, Dr. Reddy’s will purchase the portfolio in exchange for an initial cash payment of roughly $90 million (USD), contingent payments of up to $15 million (USD), consideration for inventory, and credits for a number of accrued channel liabilities that will be determined on the closing date. The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended, appropriate waiting period, and other customary closing conditions must all be satisfied before the deal may close.

The acquisition will add goods with little competition to Dr. Reddy’s U.S. retail prescription pharmaceutical business. Moreover, it helps Dr. Reddy’s initiatives to speed up and broaden access to patient-affordable pharmaceuticals.

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”.

According to IQVIA, the total addressable market for authorized but unmarketed drugs in the pipeline is expected to be worth USD 3.6 billion (USD) in the United States for the calendar year ending in December 2022.