Dr. Reddy's Laboratories said that its wholly owned subsidiary Dr. Reddy's Laboratories SA has entered into a definitive agreement to acquire the U.S. generic prescription product portfolio of Australia-based Mayne Pharma Group.
The portfolio includes approximately 45 commercial products, four pipeline products and 40 approved non-marketed products, including a number of generic products focused on women's health.
For the financial period ended 30 June 2022, Mayne Pharma reported total revenue of $111 million (USD) for the acquired portfolio.
Under the terms of the agreement, Dr. Reddy's will acquire the portfolio for an upfront payment of approximately $90 million (USD) in cash, contingent payments of up to $15 million (USD), consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date.
The closing of the transaction is subject to satisfactory completion of customary closing conditions including the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended.
The value of total addressable market for the pipeline and approved non-marketed products in the U.S. is approximately $3.6 billion (USD) for the calendar year ending in December 2022 according to IQVIA.
The acquisition will complement Dr. Reddy's U.S. retail prescription pharmaceutical business with limited competition products.
Marc Kikuchi, Chief Executive Officer, North America business, Dr. Reddy's, said, This important acquisition provides our North America organization with a significant foothold in the women's health space. The acquisition is in line with our stated strategy to enhance our portfolio in our chosen growth markets. We are well-positioned to successfully integrate the portfolio and grow the business.
Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.
The drug major's consolidated net profit jumped 76.52% to Rs 1,247.1 crore on 27.26% rise in revenues to Rs 6,770 crore in Q3 FY23 over Q3 FY22.
The scrip fell 1.79% to currently trade at Rs 4418.95 on the BSE.
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