Mylan to Acquire Famy Care for Up to $800 MM
Mylan Inc. has agreed to acquire, through its Indian subsidiary Mylan Laboratories Limited, certain female health care businesses from Famy Care Limited, a specialty women’s healthcare company with a focus in generic oral contraceptive products (OCPs) for $750 million in cash plus additional contingent payments of up to $50 million. Under the proposed transaction structure, Famy Care will spin off its female healthcare businesses under a court-approved scheme of demerger. Post demerger, Mylan will acquire the shares of the new resulting company.
Mylan and Famy Care have an exclusive partnership dating to 2008, under which Famy Care develops and supplies OCP products to Mylan for distribution to customers in the US and certain other markets. In the US, Famy Care and Mylan have a portfolio of 12 approved products, with abbreviated new drug applications pending US Food and Drug Administration (FDA) approval for 30 products.
Famy Care, headquartered in Mumbai, India, provides women’s health products, including oral and injectable contraceptives, intra-uterine devices, tubal rings, and hormone-replacement therapy products. It has four manufacturing facilities in India, two of which have been approved by the FDA Administration and the European Union. On the R&D side, the company has capabilities for the development of hormonal and high-potency formulations. The company’s R&D and regulatory affairs team consists of more than 100 professionals and is responsible for approximately 600 product registrations in approximately 90 countries and a pipeline of more than 200 filings, including more than 100 filings for developed markets.
The acquisition will build on Mylan’s existing partnerships with Famy Care in North America, Europe, and Australia, and provide Mylan with an enhanced and vertically integrated platform in women’s healthcare products. This transaction follows Mylan’s pending acquisition of Abbott’s non-U.S. developed markets specialty and branded generics business, which also includes a women’s health care portfolio and sales and marketing capabilities. Additionally, the acquisition of the Famy Care businesses positions Mylan in hormonal contraceptives in emerging markets The transaction is expected to close in the second half of 2015, subject to regulatory approvals and certain closing conditions.