Mayne Pharma To Acquire Generics From Teva for $652 Million
Mayne Pharma, an Australian pharmaceutical company, has agreed to acquire a portfolio of US generic products from Teva and Allergan for cash consideration of $652 million. The portfolio consists of 37 approved products and five products filed with the US Food and Drug Administration. The divestiture by Teva was mandated by the US Federal Trade Commission (FTC) in connection with Teva's proposed acquisition of Allergan's generic drug business.
The acquired portfolio is expected to add more than $237 million to Mayne Pharma's fiscal year 2017 net sales. Completion of Mayne Pharma's acquisition is expected to be concurrent with the closing of Teva's acquisition and is subject to the FTC approving that transaction and Mayne Pharma's acquisition of the portfolio.
Up to 11 of the acquired products will be transferred into Mayne Pharma's commercial manufacturing facilities in Greenville, North Carolina, and Salisbury, South Australia. This will accelerate the use of existing and previously announced expansions to manufacturing capacity. In August 2015, Mayne announced it will invest $65 million to expand facilities and equipment at the company’s site in Greenville, North Carolina. The company's plans include the greenfield construction of a new, 126,000-square-foot, large-scale oral-dose manufacturing facility, along with the re-purposing of existing space to expand contract services.
Mayne Pharma has been working closely with Teva and the FTC since December 2015 and has established supply agreements with Teva for the manufacture of certain products not currently outsourced to CMOs for up to five years. Following completion, execution risk will be mitigated by the FTC's ongoing monitoring of compliance with a public consent order issued by the FTC, which aims to ensure market competitiveness. Typical obligations in a consent order include the seller to prioritize the supply of products to Mayne Pharma over products for its own use, provide certain transitional services, and take all necessary actions to maintain economic viability and marketability of the divested products until they are transferred.
Source: Mayne Pharma