Mayne Pharma Buys US Drugs from Teva, Allergan for $652 Million
June 27 2016 - 8:13PM
Dow Jones News
By Rebecca Thurlow
SYDNEY--Mayne Pharma Group Ltd. (MYX.AU) acquired a portfolio of
U.S. generic drugs from Teva Pharmaceutical Industries Ltd. (TEVA)
and Allergan PLC (AGN) for US$652 million.
The Adelaide-based drug manufacturer and distributor said
Tuesday it will fund the deal, and costs, via an A$888 million
equity raising (US$652 million) and an extension of its debt
facility.
The portfolio consists of 37 approved products, and five
products filed with the U.S. Food and Drug Administration, "in
attractive markets with limited competition," the company said.
Mayne Pharma said the acquisition "significantly transforms" the
scope and breadth of its U.S. generics division and is expected to
propel the firm into the top 25 retail generic pharmaceutical
companies and the top two in the generic oral contraceptives market
in the U.S.
The acquisition price represents less than six times projected
fiscal earnings before interest tax depreciation and amortization
for the portfolio, the company said.
The acquired portfolio is expected to contribute sales of US$237
million in fiscal 2017, adding "very significantly" to earnings per
share, the company added.
-Write to Rebecca Thurlow at rebecca.thurlow@wsj.com
(END) Dow Jones Newswires
June 27, 2016 19:58 ET (23:58 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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