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Hyderabad, Feb 27 Dr. Reddy’s Laboratories SA, an arm of Dr. Reddy’s Laboratories Ltd, has entered into a definitive agreement to acquire the US generic prescription product portfolio of Australia-based Mayne Pharma Group Ltd.
Under the terms of the agreement, Hyderabad-based Dr. Reddy’s will acquire the portfolio for an upfront payment of approximately $90 million in cash, contingent payments of up to $15 million, consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date.
Portfolio
The portfolio includes approximately 45 commercial products, four pipeline products and 40 approved non-marketed products, including a number of generic products focused on women’s health.
For the financial period ended June 30, 2022, Mayne Pharma reported total revenue of $111 million for the acquired portfolio. Approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product.
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. 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.’‘ Marc Kikuchi, Chief Executive Officer, North America business, Dr. Reddy’s said in a release.
Erez Israeli, Chief Executive Officer, Dr. Reddy’s, said: “The US 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.’‘
The acquisition would also complements Dr Reddy’s 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,’‘ Israeli added.
The value of total addressable market for the pipeline and approved non-marketed products in the US is approximately $3.6 billion for the calendar year ending in December 2022, according to the release.
In 2022, key acquisitions of Dr Reddy’s included Germany-based Nimbus Health GmbH for an undisclosed sum and cardiovascular brand Cidmus in India for $61 million from Novartis AG.
The company recently said that it was open for acquistion-led growth if the right candidates which were in tune with its philosophy and business were available.
Dr Reddy’s scrip lost 2 per cent on the Bombay Stock Exchange on Monday to end at Rs 4407.50.
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