Dr. Reddy's to buy Mayne Pharma’s US generics drug list for at least $90M
Generic drugs giant Dr. Reddy’s Laboratories has made a deal to acquire Mayne Pharma’s US generics portfolio for at least $90 million.
Mayne Pharma sells about 45 different generics products in the US, Dr. Reddy’s said in a release announcing the sale, including generics in women’s health.
Mayne has been working to revamp its portfolio and to support the launch of Nextstellis, a brand-name birth control pill. In August of last year, the company said that the Covid-19 pandemic had left behind its goals for the Nextstellis launch. The generics business has been in decline, echoing struggles the industry has faced across companies.
Generics drugmakers have been consolidating for years, as low prices and market volatility have made it harder to do business. Last week, Akorn Pharmaceuticals shut down a sterile drugs manufacturing site in Illinois, laying off 400 workers; the company had filed for bankruptcy in 2020 after failing to find a buyer.
Much of the industry has shifted overseas, with lower-cost manufacturers such as Dr. Reddy’s benefiting. But the result has been occasional shortages, such as out-of-stock ADHD medicines reported across the US over the last year.
Under the terms of the deal, Dr. Reddy’s will pay $90 million in cash as well as up to $15 million in contingent value rights. Along with the 45 on-market products, it also includes about 40 drugs that aren’t currently being sold. The on-market drugs brought in $111 million in the last reported year of results, Dr. Reddy’s said.
“The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives,” Dr. Reddy’s CEO Erez Israeli said. “The portfolio includes some high entry-barrier products. It also complements our existing portfolio by introducing products focused on women’s health.”