- Dr. Reddy's Laboratories Ltd (NYSE:RDY) has agreed to acquire the U.S. generic prescription product portfolio of Australia-based Mayne Pharma Group Limited (OTC:MAYND) (OTC:MAYNF) (OTC:MYPHY).
- Under the terms of the agreement, Dr. Reddy's will acquire the portfolio for an upfront payment of approximately $90 million in cash, with contingent payments of up to $15 million.
- Consideration towards inventory and credits for certain accrued channel liabilities are to be determined on the closing date.
- The portfolio includes approximately 45 commercial, four pipeline, and 40 approved non-marketed products, including several generic products focused on women's health.
- For FY ended June 30, 2022, Mayne Pharma reported total revenue of $111 million for the acquired portfolio.
- Approved 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.
- Marc Kikuchi, CEO, North America business, Dr. Reddy's, said, "This important acquisition provides our North America organization with a significant foothold in the women's health space."
- Erez Israeli, CEO, Dr. Reddy's, said, "The U.S. 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."
- Price Action: RDY shares traded lower by 0.29% at $54.01 on the last check Monday.
Dr. Reddy's Seeks Gaining Foothold In Women's Health Via Mayne Pharma's U.S. Prescription Generic Deal
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