Teva to sell US generic products to Australia's Mayne Pharma for $652 mn

Israel's Teva Pharmaceuticals today struck a deal to sell its US generic products to Australia's Mayne Pharma Group Ltd for $652 million.

The sale is part of a $2-billion divestiture by to win regulatory approval for its$40.5-billion acquisition of Allergan's generic business (See: Teva readies to divest $2 bn in assets to win US regulatory approval for Allergan). Mayne, a ASX-listed specialty pharmaceutical company, said that it will raise A$601 million ($440.89 million) for a 1-for-1.725 rights issue and a share placement offer of A$287 million to fund the acquisition.

Mayne Pharma will acquire 37 approved and 5 US Food and Drug Administration filed products from Teva and Allergan plc.

Up to eleven of the acquired products will be transferred into Mayne Pharma's commercial manufacturing facilities in North Carolina, and South Australia.

The acquisition is expected to propel Mayne Pharma into the top 25 retail generic pharmaceutical companies and the top 2 in the generic oral contraceptives market in the US.

It also substantially increases and diversifies Mayne Pharma's earnings across more products, therapeutic areas, dosage forms and complex technologies, and builds upon its expertise in modified-release, potent compounds and controlled substances.

The acquired drugs are expected to add more than $237 million to Mayne Pharma's FY17 net sales with gross margins greater than 50 per cent.

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,'' he added.