Industry Sectors

Mayne Pharma raising $887m to fund US generics acquisition

Mayne Pharma pharmaceutical facility at Salisbury SouthAs featured in Australian Financial Review, Mayne Pharma has cemented its status as one of Australia’s fastest-growing companies by paying $887 million for a portfolio of generic drugs.

This will make it the second-largest drug maker on the stock exchange and one of the top 25 generic drug companies in North America.

Adelaide-based Mayne Pharma has agreed to pay $US652 million ($887 million) for 42 generic drugs divested by Teva Pharmaceutical Industries as part of its $US40.5 billion acquisition of Allergan’s generics portfolio.

The portfolio consists of 37 approved products and five pipeline products in markets with limited competition, high barriers to entry and across a range of therapeutic areas, helping to diversify Mayne Pharma’s earnings in the short term and deliver additional growth during the next few years as new products are launched.

Mayne Pharma’s CEO, Scott Richards, said: “The acquisition transforms Mayne Pharma’s Generic Products Division into a top 25 player in the U.S. retail generics market, diversifying Mayne Pharma’s earnings across a broad range of products, therapeutic areas and technologies. This attractive Portfolio spans multiple dosage forms and complements our expertise in higher-value niche, differentiated products. The on-market products have strong shares in stable, mature markets, while the pipeline products are expected to deliver additional growth in attractive markets as they are launched over the next couple of years.”

This is Mayne Pharma’s eighth acquisition in four years – will boost annual sales to about $580 million from this year’s $260 million and lift the company’s market value from $1.2 billion to more than $2 billion, within reach of the top 100 on the ASX.

This deal will propel Mayne’s ranking in the US generic drugs market to No. 25 from No. 75 and make it the second-largest in the US generic oral contraceptives market.