Dr. Reddy’s Laboratories on Monday said it entered into a definitive agreement to acquire Mayne Pharma’s US generic prescription product portfolio for $105 million.

Under the terms of the agreement, Dr. Reddy’s will acquire the portfolio for an upfront payment of $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.

For the financial period ended June 30, 2022, Mayne Pharma reported total revenue of $111 million (USD) for the acquired portfolio.

Approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product.

The portfolio of Australia-based Mayne includes around 45 commercial products, four pipeline products and 40 approved non-marketed products, including a number of generic products focused on women’s health.

Dr Reddy’s said the acquisition will complement its US retail prescription pharmaceutical business with limited competition products. It also supports Dr. Reddy’s efforts to accelerate and expand affordable medications for patients.

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. “This important acquisition provides our North America organization with a significant foothold in the women’s health space,” said Marc Kikuchi, CEO, North America business, Dr. Reddy’s, said.

“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, ” Kikuchi added.

“The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives. The portfolio includes some high entry-barrier products,” said Erez Israeli, CEO of Dr. Reddy’s.

“Our strong balance sheet enables us to acquire products of strategic importance to strengthen our base business and build for long-term growth,” Israeli said.
The value of the total addressable market for the pipeline and approved non-marketed products in the US are $3.6 billion for the calendar year ending in December 2022 according to IQVIA.