Mayne Pharma to buy a portfolio of Teva’s generic drugs for $652 million
pharmafile | June 29, 2016 | News story | Research and Development, Sales and Marketing | Allergan, Deals, Mayne Pharma, Teva, generics, merger and acquisition
Australia’s Mayne Pharma Group Ltd (ASX: MYX) said it will acquire US generic products from Israel-based drugmaker Teva Pharmaceuticals (NYSE: TEVA) for $652 million, saying the deal will help propel the company into the top 2 in the general oral contraceptives market in the US.
Mayne’s Chief Executive, Scott Richards, said: “The acquisition transforms Mayne Pharma’s Generic Products Division into a top 25 player in the US retail generics market, diversifying Mayne Pharma’s earnings across a broad range of products, therapeutic areas and technologies. This attractive Portfolio spans multiple dosage forms and complements our expertise in higher-value niche, differentiated products. The on-market products have strong shares in stable, mature markets, while the pipeline products are expected to deliver additional growth in attractive markets as they are launched over the next couple of years.”
The portfolio consists of 37 approved products and 5 US Food and Drug Administration (FDA) filed products, across a range of therapeutic areas, Mayne said.
The acquired portfolio is expected to add more than $237 million to Mayne Pharma’s FY17 net sales with gross margins greater than 50%. The transaction is expected to be very significantly accretive to earnings per share (on both a cash and reported basis, excluding synergies) in FY17, the company said.
Mayne will raise A$601 million ($440.89 million) for a 1-for-1.725 rights issue and a share placement offer of A$287 million to fund the acquisition, the company said in a statement.
This is the last of several large divestments of Teva’s US assets required by regulators for the approval of the company’s $40 billion acquisition of Botox-maker Allergan’s (NYSE: AGN) generic drugs portfolio. The Teva-Allergan deal was announced last year.
Anjali Shukla
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