Australian pharma divests its generics portfolio

Pharma News: Australia’s Mayne Pharma announced that it has entered into an agreement with Dr. Reddy’s Laboratories to sell its US retail generics portfolio for US$90 million (~A$133 million).

Following the transaction, Mayne Pharma’s commercial activities will be solely focused on its US women’s health portfolio, (including the recent exclusive licence of three branded women’s health products and a portfolio of prenatal vitamins from TherapeuticsMD, Inc), US dermatology products and its International business.

The sale includes all assets of the US retail generics business unit, comprising a portfolio of 85 generic products and 4 generic pipeline products. For fiscal year ending June 2022, this portfolio generated US$111 million in revenues.

At the closing of the sale, Mayne Pharma and Dr. Reddy’s will enter into a 10-year supply agreement on arm’s length terms for certain products that are manufactured at Mayne Pharma’s facility in Salisbury, South Australia.

Mayne Pharma’s CEO Shawn Patrick O’Brien said “Divesting the retail generics portfolio is an important step forward for the Company as we continue to rationalise our portfolio. With this transaction, we free up working capital, allowing us to more exclusively focus resources on core areas of value for business growth, namely our branded verticals in US women’s health and dermatology. We are creating a leaner company with strong commercial and sales execution capabilities. With this transaction, we move closer to achieving our goal of generating operating cash and returning the business to profitability.”

Dr Reddy’s CEO Erez Israeli 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.”

The transaction is expected to close by the end of fiscal year 2023.