Dr Reddy's to buy US generic product portfolio of Australia-based Mayne Pharma
The acquisition will complement Dr Reddy's US retail prescription pharmaceutical business with limited competition products.
![Dr Reddy's to buy US generic product portfolio of Australia-based Mayne Pharma Dr Reddy's to buy US generic product portfolio of Australia-based Mayne Pharma](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_850x478/public/2023/02/27/229224-drreddyzeebiz.jpg?itok=Q3bsv8iW&c=c5af8c0f92ccc8e249257bf0f1cb18e8)
Dr Reddy's Laboratories on Monday said one of its subsidiary has inked a pact to acquire the US generic prescription product portfolio of Australia-based Mayne Pharma Group in a deal worth USD 105 million.
Dr Reddy's Laboratories SA, a wholly-owned subsidiary of Hyderabad-based drug major, has entered into a definitive agreement to acquire the Salisbury-based Mayne Pharma.
Under the terms of the agreement, Dr Reddy's will acquire the portfolio for an upfront payment of around USD 90 million in cash, contingent payments of up to USD 15 million, consideration towards inventory and credit for certain accrued channel liabilities to be determined on the closing date, the drug firm said in a statement.
The portfolio includes 45 commercial products, four pipeline products and 40 approved non-marketed products, including a number of generic products focused on women's health, it added.
For the financial period ended June 30, 2022, Mayne Pharma reported a total revenue of USD 111 million (USD) for the acquired portfolio, Dr Reddy's said.
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 including the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended, the drug major noted.
The acquisition will complement Dr Reddy's US retail prescription pharmaceutical business with limited competition products, it added.
It also supports the company's efforts to accelerate and expand affordable medications for patients, it added.
"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. It also complements our existing portfolio by introducing products focused on women's health," Dr Reddy's Chief Executive Officer Erez Israeli said.
The company's strong balance sheet enables it to acquire products of strategic importance to strengthen base business and build for long-term growth, he added.
According to IQVIA, the value of the total addressable market for the pipeline and approved non-marketed products in the US is around USD 3.6 billion for the calendar year ending in December 2022.
Dr Reddy's North America business Marc Kikuchi said the important acquisition provides the company's North America organisation 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," he added. Shares of the company were trading 2.73 per cent down at Rs 4,376.35 apiece on BSE.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
12:27 PM IST