Dr. Reddy’s Laboratories on Monday said it will acquire the U.S. generic prescription product portfolio of Salisbury, Australia-based Mayne Pharma Group Ltd. for $105 million, which includes an upfront payment of around $90 million in cash and contingent payments of up to $15 million.
The portfolio includes approximately 45 commercial products, four pipeline products and 40 approved nonmarketed products, including a number of generic products focused on women’s health.
Dr. Reddy’s said the approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product.
The closing of the transaction is subject to satisfactory completion of customary closing conditions.
The acquisition will complement Dr. Reddy’s U.S. retail prescription pharmaceutical business with limited competition products. It also supports Dr. Reddy’s efforts to accelerate and expand affordable medications for patients.
“This important acquisition provides our North America organization with a significant foothold in the women’s health space,” Marc Kikuchi, CEO, North America business, Dr. Reddy’s, said. “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, CEO of Dr. Reddy’s, said the U.S. has always been an important market for the company and that the portfolio of products acquired from Mayne Pharma was a strategic fit with Dr. Reddy’s growth objectives.
Israeli also added that the firm’s strong balance sheet enables it to acquire products of strategic importance to strengthen its base business and build for long-term growth.
The value of total addressable market for the pipeline and approved nonmarketed products in the U.S. is approximately $3.6 billion for the calendar year ending in December 2022, according to IQVIA, Dr. Reddy’s said in its statement.