Dr. Reddy's will make birth control pill, bought this company for $ 105 million

The acquired portfolio includes 45 commercial products, four pipeline products and 40 approved non-marketed products. These include many generic products focused on women's health.

Dr. Reddy's Laboratories has entered into an agreement to acquire the US generic portfolio of Australian company Mayne Pharma. Giving this information on Monday, Dr. Reddy's said that the deal was done for $105 million. Dr Reddy's Laboratories SA, a wholly owned subsidiary of the Hyderabad-based pharmaceutical company, has entered into a definitive agreement to acquire Mayne Pharma of Salisbury. Under the terms of the agreement, Dr Reddy's will make an advance payment of approximately $90 million in cash along with a contingent payment of $15 million.

What did you get from the acquisition?

The acquired portfolio includes 45 commercial products, four pipeline products and 40 approved non-marketed products. These include many generic products focused on women's health. Approved high-valued products include a hormonal vaginal ring, a birth control pill, and a cardiovascular product. In the year ending June 30, 2022, Mayne Pharma generated revenue of $111 million for the acquired portfolio.

Will help women

Dr Reddy's said the acquisition will complement its US retail prescription pharmaceutical business with products with limited competition. It will also support Dr Reddy's efforts to accelerate and expand access to affordable medicines for patients. According to Mark Kikuchi, CEO of Dr. Reddy's North America business, this important acquisition will give our North American organization a significant footing in the field of women's health. "We are well positioned to successfully integrate the portfolio and grow the business," Kikuchi said.

How much is the market value

Dr. Reddy's CEO Erez Israeli said that the portfolio of products from Mayne Pharma is a strategic fit with our growth objectives. The portfolio includes some high entry-barrier products. Israel said that our strong balance sheet enables us to strengthen our base business and acquire products of strategic importance for long-term growth. The total market value for pipeline and approved non-marketed products in the US for the calendar year ending December 2022 is $3.6 billion, according to IQVIA.