Mayne Pharma To Buy U.S. Generic Products From Teva, Allergan For $652 Mln

(RTTNews) - Australia's Mayne Pharma Group Ltd. said that it has entered into a binding agreement to acquire a portfolio of U.S. generic products from Teva Pharmaceutical Industries Limited (TEVA) and Allergan (AGN) for cash consideration of $652 million.

The portfolio consists of 37 approved products and 5 FDA filed products in attractive markets with limited competition, across a range of therapeutic areas.

The divestiture by Teva was mandated by the Federal Trade Commission or "FTC" in connection with Teva's proposed acquisition of Allergan's generic drug business. 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 eleven of the acquired products will be transferred into Mayne Pharma's commercial manufacturing facilities in Greenville, N.C., and Salisbury, South Australia, Mayne Pharma said.

The acquired Portfolio is expected to add more than $237 million to Mayne Pharma's fiscal year 2017 net sales with gross margins greater than 50 percent. The transaction is expected to be very significantly accretive to earnings per share (on both a cash and reported basis, excluding synergies) in fiscal year 2017.

Mayne Pharma noted that it will fund the acquisition via a fully underwritten equity raising on the Australian Securities Exchange and an extension of Mayne Pharma's existing debt facilities secured in June 2015.