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Mayne Pharma closes $652 million acquisition of generic drug portfolio from Teva and Allergan
The deal was part of the largest generic drug divestiture overseen by the Federal Trade Commission. It propels Mayne Pharma into the top 25 retail generic pharma companies in the U.S. and the second largest provider of generic oral contraceptives.
By: Mayne Pharma
This transaction is part of the largest generic pharmaceutical divestiture overseen by the Federal Trade Commission and the result of Teva's $40.5-billion acquisition of Allergan's generic drug business. Mayne Pharma secured the greatest number of products of the 11 buyers.
The acquired portfolio aligns with Mayne Pharma's focus in complex drug delivery formulations and technologies — and includes transdermal patches, gel capsules, semi-solids and modified-release products.
In acquiring the drug portfolio, Mayne Pharma is expanding its focus into therapeutic treatment areas that include women's health, oncology, central nervous system, and cardiovascular.
Overall, the acquired portfolio propels Mayne Pharma into the top 25 retail generic pharmaceutical companies and the second-largest provider of generic oral contraceptives in the United States.
"We are extremely pleased to complete this transaction that establishes Mayne Pharma as a key player in the U.S. generic market," said Stefan Cross, president of Mayne Pharma USA. "This portfolio is highly profitable and will significantly extend our size, scale and reach in the United States. Recent investments in people, systems and facilities will readily support the rapidly growing organization and ensure we continue to deliver exceptional service and high-quality products to our customers. Since Mayne Pharma entered the U.S. market in 2012, our company has established its organization so it could act quickly when attractive growth opportunities like this presented themselves."
Highlights of Mayne Pharma's recent investments include:
· Commencement of construction of a new solid oral-dose commercial manufacturing facility in Greenville, N.C., that will more than quadruple existing U.S. manufacturing capacity. Following this acquisition, $80 million has been committed to the Greenville expansion, which will introduce new capability, such as multi-particulate layering, bead-coating fluid bed technology and significantly increased capacity to manufacture highly potent products.
· A $20-million investment at the company's manufacturing facility in Salisbury, Australia, to expand fluid bed processing capacity and add new potent handling capability.
· Expansion of the global workforce to more than 700 employees with 100 new roles added in the last year alone to support existing and future growth of the business.
The Teva/Allergan acquisition was financed through an extension to existing debt facilities and an underwritten $661-million equity raising that was oversubscribed by both institutions and retail investors.
"Our expanded product offering from the Teva/Allergan acquisition provides Mayne Pharma with an opportunity to deepen relationships across the industry – with patients and customers and continuing through to our contract manufacturing and active pharmaceutical ingredient partners. Mayne Pharma's focus has always been to deliver a reliable supply of high-quality, cost-effective medications that enhance the quality of patient lives." Cross said.
Mayne Pharma now has a diversified commercial U.S. product portfolio with 60 marketed products as well as a strong pipeline that includes 19 products pending at the FDA and another 20+ products in various stages of development. To learn more, visit www.maynepharma.com
About Mayne Pharma
Mayne Pharma is a publicly traded specialty pharmaceutical company listed on the Australian Securities Exchange. The company develops and manufactures branded and generic products globally —either directly or through distribution partners — while applying its drug-delivery expertise for contract development and manufacturing services. Mayne Pharma has a 30-year track record of innovation and success in developing new oral drug delivery systems; these technologies have been successfully commercialized in products marketed around the world. Mayne Pharma has drug development and manufacturing facilities in Greenville, North Carolina, USA, and Salisbury, Australia, and offers expertise in formulating complex oral dose forms including highly potent compounds, controlled substances, and modified release products. In the United States, Mayne Pharma's operations consist of U.S. Generic Products, U.S. Specialty Brands, and Metrics Contract Services.