 "Mylan buys Famy Care businesses for $750 mn")
Mylan Laboratories Limited, the Indian subsidiary of the US-based pharma major Mylan Inc, has signed a definitive agreement to acquire certain female health care businesses from the Mumbai-based Famy Care Limited, a specialty women's health care company with global leadership in generic oral contraceptive products (OCPs), for $750 million (about Rs 4625 crore) in cash plus additional contingent payments of up to $50 million.
The acquisition will build on Mylan's existing partnerships with Famy Care in North America, Europe and Australia, and provide Mylan with an enhanced and now vertically integrated platform that will accelerate the company's growth in the important global women's health care space.
This transaction especially complements Mylan's pending acquisition of Abbott's non-US developed markets specialty and branded generics business, which also includes a women's health care portfolio and sales and marketing capabilities. Additionally, the acquisition of the Famy Care businesses will make Mylan a hormonal contraceptives leader in high-growth emerging markets around the world. The acquisition is expected to be immediately accretive to Mylan's adjusted diluted earnings per share and growth profile upon closing. The transaction is expected to close in the second half of 2015, subject to regulatory approvals and certain closing conditions.
Heather Bresch, CEO, Mylan, said, "In 2008, Mylan established a partnership with Famy Care, significantly enhancing its presence in the women's health care segment in the US and other developed country markets. With today's acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area. We see many opportunities to tap the large women's health care market in Europe, particularly through our pending Abbott deal; the prospect of driving additional value from this business in North America; and exciting growth potential in emerging markets.”
Famy Care offers a comprehensive range of women's health products including oral and injectable contraceptives, intra-uterine devices (IUDs), tubal rings and hormone-replacement therapy products.
Famy Care is the world's largest producer of generic OCPs, with four high quality manufacturing facilities in India, two of which have been approved by the US Food and Drug Administration (USFDA) and the European Union. Famy Care is the first generics company to have received prequalification from the World Health Organization for hormonal contraceptives. This manufacturing base represents one of the lowest cost and largest dedicated to OCPs globally, and brings Mylan strong capabilities in OCP cycles, injectables, IUDs and tubal rings.
JP Taparia, non-executive chairman of Famy Care, said, “This transaction represents a significant milestone for Famy Care and its employees, who have created a world-class women's health care franchise. We foresee significant opportunities in the women's health care business across developed and emerging markets, and the proposed transaction provides an opportunity for our team to capture the opportunity in an even more effective manner.”
In 2010, Famy Care started the transitionprocess from a family-owned business into a institutional player in the global pharmaceutical industry by enlarging its shareholder base with the investment by pan-Asian private equity firm, AIF Capital Limited.
Famy Care has a strong presence in the private, institutional and non-governmental organisation sectors and markets its products in more than 90 countries around the world.
Mylan and Famy Care have an exclusive partnership dating to 2008, under which Famy Care develops and supplies OCP products to Mylan for distribution to customers in the US and certain other markets. In the US, Famy Care and Mylan have a portfolio of 12 approved products, with abbreviated new drug applications pending FDA approval for 30 products.
The acquisition will build on Mylan's existing partnerships with Famy Care in North America, Europe and Australia, and provide Mylan with an enhanced and now vertically integrated platform that will accelerate the company's growth in the important global women's health care space.
This transaction especially complements Mylan's pending acquisition of Abbott's non-US developed markets specialty and branded generics business, which also includes a women's health care portfolio and sales and marketing capabilities. Additionally, the acquisition of the Famy Care businesses will make Mylan a hormonal contraceptives leader in high-growth emerging markets around the world. The acquisition is expected to be immediately accretive to Mylan's adjusted diluted earnings per share and growth profile upon closing. The transaction is expected to close in the second half of 2015, subject to regulatory approvals and certain closing conditions.
Heather Bresch, CEO, Mylan, said, "In 2008, Mylan established a partnership with Famy Care, significantly enhancing its presence in the women's health care segment in the US and other developed country markets. With today's acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area. We see many opportunities to tap the large women's health care market in Europe, particularly through our pending Abbott deal; the prospect of driving additional value from this business in North America; and exciting growth potential in emerging markets.”
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Famy Care offers a comprehensive range of women's health products including oral and injectable contraceptives, intra-uterine devices (IUDs), tubal rings and hormone-replacement therapy products.
Famy Care is the world's largest producer of generic OCPs, with four high quality manufacturing facilities in India, two of which have been approved by the US Food and Drug Administration (USFDA) and the European Union. Famy Care is the first generics company to have received prequalification from the World Health Organization for hormonal contraceptives. This manufacturing base represents one of the lowest cost and largest dedicated to OCPs globally, and brings Mylan strong capabilities in OCP cycles, injectables, IUDs and tubal rings.
JP Taparia, non-executive chairman of Famy Care, said, “This transaction represents a significant milestone for Famy Care and its employees, who have created a world-class women's health care franchise. We foresee significant opportunities in the women's health care business across developed and emerging markets, and the proposed transaction provides an opportunity for our team to capture the opportunity in an even more effective manner.”
In 2010, Famy Care started the transitionprocess from a family-owned business into a institutional player in the global pharmaceutical industry by enlarging its shareholder base with the investment by pan-Asian private equity firm, AIF Capital Limited.
Famy Care has a strong presence in the private, institutional and non-governmental organisation sectors and markets its products in more than 90 countries around the world.
Mylan and Famy Care have an exclusive partnership dating to 2008, under which Famy Care develops and supplies OCP products to Mylan for distribution to customers in the US and certain other markets. In the US, Famy Care and Mylan have a portfolio of 12 approved products, with abbreviated new drug applications pending FDA approval for 30 products.