Mylan on Monday agreed to buy some of Famy Care’s women’s health businesses for as much as $800 million, helping the US-based generic drugmaker bolster its presence in the contraceptives segment.
The deal with Mumbai-based Famy Care, a leader in generic oral contraceptives, will pitch Mylan to the top of the hormonal contraceptives space in emerging markets.
Second acquisitionThis is Mylan’s second purchase in India. In 2013, it had bought Bengaluru-based Strides Arcolab's injectable drugs unit for $1.6 billion.
Famy has partnerships with Mylan in North America, Europe and Australia. Mylan Chief Executive Heather Bresch says the latest transaction will help build on the partnership established in 2008. Mylan will pay $750 million (about ₹4,630 crore now) in cash and another $50 million for achieving certain milestones.
“With today’s acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area. We see many opportunities to tap the large women’s healthcare market in Europe, particularly through our pending Abbott deal; the prospect of driving additional value from this business in North America; and exciting growth potential in emerging markets,” he says.
The deal, which is expected to close in the second half of 2015, will see more than 900 employees from Famy Care move into Mylan.
It will complement Mylan’s pending acquisition of Abbott’s non-US specialty and branded generics business, which also includes a women’s healthcare portfolio and sales and marketing capabilities.
The transaction has been unanimously approved by the boards of both companies.
Famy Care will spin off its female healthcare businesses under a court approved scheme of demerger.
Post the demerger, Mylan will acquire the shares of the new resulting company.
Why FamyFamy Care brings to the table a broad portfolio, strong technical capabilities and dedicated hormone manufacturing, says Mylan President Rajiv Malik.
JP Taparia, Famy Care’s non-executive chairman, says an investment by pan-Asian private equity firm AIF Capital helped Famy Care transition from a family-owned business in 2010 into a meaningful institutional player in the global pharmaceutical industry. Famy Care’s portfolio includes oral and injectable contraceptives.