Mayne Pharma Acquiring 42 Generic Drugs
Mayne Pharma Expands into U.S. Through the $652 Million Acquisition of 42 Generic Drugs From Allergan and Teva
By Mark Terry, BioSpace.com Breaking News Staff
Australian company Mayne Pharma Group Ltd. announced it will be acquiring 37 approved drugs and five products that have been filed with the U.S. Food and Drug Administration (FDA) from Teva Pharmaceutical Industries Limited (TEVA) and Allergan (AGN). Teva and Allergan are divesting certain products in order to meet antitrust requirements for the $40.5 billion sale of Allergan’s generics to Teva.
The deal is for $652 million in cash and the drugs are part of a broad portfolio that includes complex pharmaceutical formulations, modified-release tablets and capsules, soft-gel capsules and transdermal patches across many therapeutic areas.
“The acquisition transforms Mayne Pharma’s Generic Products Division into a top 25 player in the U.S. retail generics market, diversifying Mayne Pharma’s earnings across a broad range of products, therapeutic areas and technologies,” said Scott Richards, Mayne Pharma’s chief executive officer, in a statement. “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 delivery additional growth in attractive markets as they are launched over the next couple of years.”
The company projects that the acquisitions will create sales of $237 million in 2017. At least 11 of the products will be shifted to Mayne Pharma’s manufacturing plants in Greenville, North Carolina and Salisbury, South Australia.
Last week, Hayward, California-based IMPAX Laboratories (IPXLL) announced it was acquiring a portfolio of generic drugs from Israel-based Teva and Dublin-based Allergan as part of the divestment. That deal involved 15 currently marketed generic drugs, one approved generic product, two approved strengths of a currently marketed product that haven’t launched yet, one pipeline generic drug and one pipeline strength of a currently marketed drug. IMPAX was paying the two companies about $586 million.
And earlier in June, Teva and Allergan sold eight generic drugs to India’s Dr. Reddy’s Laboratories (RDY) for $350 million. And they also sold five abbreviated new drug applications to Sagent Pharmaceuticals for approximately $40 million.
Mayne Pharma also indicates it is working to finalize an additional $80 million worth of specialty drugs. “Our focus is on executing this deal,” Richard told The Sydney Morning Herald. “But having said that, good additional strategic transactions—generic or branded—don’t wait for anyone. We do have a late-stage deal to buy some complementary assets to build out the Doryx presence.”
In August 2015, Mayne Pharma announced that it was spending $65 million to expand its operations in Greenville, North Carolina in order to support its U.S. Products and Metrics Contract Services. This plan, which involved doubling its U.S. manufacturing capability, involved a new greenfield 126,000-square-feet oral-dose manufacturing plan on land it owned.
“This investment will ensure we have the internal capacity and capability to support the sustained growth in demand we are experiencing in MCS, unconstrained commercialization of the expanding pipeline of products under development and the growth in market share we expect from our on-market products,” Richards said in a statement at the time. “Once operational, the Company will be able to take on new and larger projects, and especially those that leverage our drug-delivery technologies and potent drug handling expertise. The Company will also be able to bring manufacturing in-house for select modified-release products in the pipeline, increasing the economic benefits that flows to Mayne Pharma.”