Dr Reddy’s Laboratories announced that it had acquired the US portfolio of Australian company, Mayne Pharma Group Limited, giving the Indian company access to 45 commercial products, four pipeline products, and 40 approved non-marketed products.
In return for the US portfolio, Dr Reddy’s will potentially pay upwards of $115m (€93.6m), which consists of a $90m upfront payment, $15m in contingent payments, and consideration towards inventory and credit for certain accrued channel liabilities to be determined on the closing date.
During full year financial results in 2022, Mayne Pharma was able to report total revenue of $111m for the acquired portfolio.
According to the report, the company’s lead product in the region is Nextsellis (drospirenone - estetrol), which is a short-acting combined hormonal contraceptive. Mayne Pharma stated that the product became the fastest growing branded contraceptive in 2022, despite the product being “behind [the company’s] business case forecast due to COVID.”
Dr Reddy’s also added a note to the acquisition announcement that IQVIA estimates that the value of the total addressable market for Mayne Pharma’s pipeline and approved non-marketed products in the US is approximately $3.6bn.
Erez Israeli, CEO of Dr Reddy’s, said, “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.”
Beyond its Nextsellis birth control product, Mayne Pharma has an extended portfolio of women’s health products, containing 13 commercial treatments, which includes Haloette (etonogestrel and ethinyl estradiol).
Haloette was launched at the beginning of this year in the US, alongside Mithra Pharmaceuticals. The product is a vaginal hormonal contraceptive ring, and is a generic version of the Nuvaring product. At launch, the companies stated that the US brand and generic sales of the Nuvaring product amounted to $564m for the 12 months ended November 2022.
In third quarter results, released in December 2022, G.V. Prasad, chairman of Dr Reddy’s, cited growing sales in North America as being a significant growth driver leading to increased sales for the company.