Dr. Reddy's Laboratories has agreed to purchase Mayne Pharma Group's U.S. generic prescription product portfolio in a definitive agreement. The portfolio consists of around 45 commercial products, four pipeline products, and 40 approved non-marketed products, including numerous generic products for women's health. The portfolio's revenue for the financial period ending on June 30, 2022, was $111 million (USD). The acquisition involves an upfront payment of approximately $90 million (USD) in cash, contingent payments of up to $15 million (USD), and consideration for inventory and credits for certain accrued channel liabilities. The transaction's completion is subject to customary closing conditions, including the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended.
The acquisition will strengthen Dr. Reddy's U.S. retail prescription pharmaceutical business with products that have limited competition. It also aligns with Dr. Reddy's goal of expanding access to affordable medications for patients. The acquisition is expected to provide a significant foothold in the women's health space for Dr. Reddy's North America organization. The 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.
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