Dr Reddy's Acquires Australia-Based Mayne Pharma's U.S. Generic Prescription Portfolio
The agreement involves an upfront payment of $90 million—around Rs 750 crore—and some contingent payments.
Dr Reddy's Laboratories Ltd.'s wholly owned subsidiary, Dr Reddy's Laboratories SA, announced the acquisition of the U.S. generic prescription product portfolio of Australia-based Mayne Pharma Group Limited.
The company announced in its exchange filing today that its Switzerland-based subsidiary had entered into a definitive agreement to acquire the portfolio for an upfront cash payment of approximately $90 million—around Rs 750 crore. Apart from this, a contingent payment of up to $15 million—around Rs 125 crore—would be made toward inventory and credits for certain accrued channel liabilities, which would be determined on the closing date subject to certain conditions.
The U.S. generic prescription 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. Of the approved high-value products, there is a hormonal vaginal ring, a birth control pill and a cardiovascular product.
Erez Israeli, chief executive officer at Dr. Reddy’s, said, "The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives. The portfolio includes some high entry-barrier products."
According to IQVIA, the total addressable market value for the pipeline and approved non-marketed products in the U.S. is approximately $3.6 billion—around Rs 29,845 crore—for the calendar year ending in December 2022, the company disclosed in the filing.
For the financial period ending June 30, 2022, Mayne Pharma reported total revenue of $111 million—around Rs 920 crore—for the acquired portfolio. The acquisition is expected to complement Dr Reddy's U.S. retail prescription pharmaceutical business with products with limited competition.
Marc Kikuchi, chief executive officer, North America business, Dr. Reddy’s, said, "This important acquisition provides our North America organisation with a significant foothold in the women’s health space." According to Kikuchi, the acquisition was in line with their strategy to enhance their portfolio in their chosen growth markets. "We are well-positioned to successfully integrate the portfolio and grow the business."