Actavis Divests US Rights to Acne Drug to Mayne Pharma
Actavis plc has entered into an agreement with Mayne Pharma, under which it will divest the US rights to the Doryx brand acne treatment and related assets to Mayne for approximately $50 million. The transaction is expected to close prior to the end of February. Actavis will continue to package, distribute, and actively promote the product for a transition period until May 2, 2015, following the close of the transaction. Doryx (doxycycline hyclate delayed-release tablets) is a tetracycline-class antimicrobial indicated as adjunctive therapy for severe acne.
Actavis currently licenses and distributes Doryx in the US as part of its legacy Warner Chilcott partnership with Mayne, which is eligible to expire at the end of 2015. Actavis said that by agreeing to return the product to Mayne now, it receives value for the asset and, following a brief transition period, will enable its sales and marketing teams to focus their time and attention on supporting the expanded dermatology portfolio that will be part of a combined company Actavis and Allergan following the expected close of Actavis’ acquisition of Allergan later this year.