India’s generic drugmaker Dr. Reddy’s Laboratories on Monday said it has signed an agreement to buy the US generic prescription product portfolio of Australia’s Mayne Pharma Group for about $115 million.
“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,” according to the filing.
Dr. Reddy’s said it will acquire the portfolio for an upfront payment of about $90 million in cash, contingent payments of up to $15 million, and consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date.
For the financial period ended June 30, 2022, Mayne Pharma reported a total revenue of $111 million for the acquired portfolio.
Dr. Reddy’s said the acquisition complements its US retail prescription pharmaceutical business with limited competition products. It also supports Dr. Reddy’s efforts to accelerate and expand affordable medications for patients.
“This important acquisition provides our North American organisation 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,” Marc Kikuchi, Chief Executive Officer, North America business, Dr. Reddy’s, said.
The value of the total addressable market for the pipeline and approved non-marketed products in the US is about $3.6 billion for the calendar year ending in December 2022, according to IQVIA.
This comes amid rising deal activity in the healthcare space in India. Recently, private equity investor Advent International entered into a definitive agreement to acquire a significant stake in Suven Pharmaceuticals.
Separately, Sun Pharmaceutical also agreed to buy Concert Pharmaceuticals Inc for $576 million to access the US company’s experimental drugs for treating skin diseases, including patchy hair loss.
As India limps out of the COVID crisis, private equity (PE) and venture capital (VC) investors are getting ready with dedicated healthcare funds to cash in on the huge unmet demand for healthcare services in the country.
Last year, Eight Roads, the global investment firm backed by Fidelity, announced its first dedicated India healthcare and life sciences fund in May.
Prior to that, healthcare VC firm HealthQuad, managed by Singapore-headquartered PE giant Quadria Capital, announced that it had raised $162 million towards the final close of its second fund.
Separately, Tata Capital Healthcare Fund, the healthcare-focused arm of PE firm Tata Capital, too, marked the final close of its second vehicle with commitments of $126 million in March.