On February 27th, 2023, Dr. Reddy’s Laboratories announced in a press release that the company had entered an agreement with Mayne Pharma Group Ltd. to acquire Mayne Pharma’s US generic prescription products portfolio. Dr. Reddy’s Laboratories Ltd. is a global pharmaceutical company based in Hyderabad, India.
Dr. Reddy’s will acquire Mayne Pharma’s portfolio for a $90 million cash payment. The portfolio contains approximately forty-five commercial products, four products in the pipeline, and forty approved non-marketed products, many of which are generics focused on women’s health. Some of the higher-value approved products include contraceptives, such as hormonal vaginal rings and birth control pills. Dr. Reddy’s will also gain Mayne’s generic arrhythmia medication amiodarone, one of the most commonly used drugs for this indication.
The finalization of the transaction is contingent upon the satisfactory completion of customary closing conditions, including an applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act).
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Mayne Pharma Acquisition in Line with Growth Strategy
Dr. Reddy’s Laboratories purpose is “Good Health Can’t Wait.” The company offers numerous products including generics, branded generics, biosimilars and over-the-counter products. Their areas of focus include gastrointestinal and cardiovascular systems, oncology, pain management, dermatology, and diabetes, with large markets in the United States, India, Russia, China, Brazil, and Europe.
The acquisition of the Mayne Pharma portfolio is important because it provides the North American subsidiary with significant positioning in the field of women’s health. Additionally, the acquisition is in line with the company’s strategy to enhance their portfolio in the US market, and in their efforts to quickly expand affordable treatment options to patients.
“The US has always been an important market for us,” said Chief Executive Officer of Dr. Reddy’s, Erez Israeli, in a statement. “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. Our strong balance sheet enables us to acquire products of strategic importance to strengthen our base business and build for long-term growth.”
Previous Acquisitions by Dr. Reddy’s Laboratories
In June of 2022, Dr. Reddy’s Laboratories had proceeded with another large portfolio acquisition of branded and generic injectable products from Eton Pharmaceuticals. The products included Biorphen and Rezipres, both indicated for patients with clinical hypotension.
Like the new acquisition of Mayne Pharma’s portfolio, at the time this acquisition supported Dr. Reddy’s Laboratories efforts to make medication affordable and accessible to patients and complemented their business with limited competition injectable products. The portfolio was acquired for an upfront payment of $5 million, with contingent payments of $45 million.
This acquisition was beneficial in addressing gaps in products that were not always readily available for patients (even before the COVID-19 pandemic), particularly in critical care settings, like hospitals. With the present acquisition, gaps in affordable women’s health products aim to be addressed.
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