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- Mayne Pharma (MYX) completes the sale of its US retail generics portfolio to Doctor Reddy’s Laboratories in South Australia for US$90 million (A$134 million)
- The portfolio includes commercial, pipeline, and approved non-marketed products, and will also offer US$15 million (A$22 million) in future contingent milestone payments
- MYX CEO Shawn Patrick O’Brien says the sale marks “another milestone” of its transformation into a specialty pharmaceutical company in the US
- Terms of the closing include an arm’s length, ten-year supply agreement for products to be manufactured at the MYX facility in Salisbury, SA
- MYX shares are up 1.76 per cent, trading at $4.05 at 10:30 am AEST
Mayne Pharma (MYX) has completed the sale of its US retail generics portfolio to Doctor Reddy’s Laboratories in South Australia for up to US$90 million (A$134 million).
The portfolio comprises all assets of the US retail generics business unit, including commercial, pipeline, and approved non-marketed products.
The total cash received at closing was US$93.8 million (A$140 million), which included upfront cash considerations and approximately US$24 million for working capital.
However, US$21 million was deducted for accrued liabilities related to the sale of the products in the US market prior to closing.
The agreement also provides up to US$15 million in future contingent milestone payments.
MYX said the sale would advance the evolution of the company into a specialty pharmaceutical business with strong branded verticals focused on US women’s healthcare and dermatology.
“The divestiture of our US retail generics portfolio is yet another milestone in the transformation of Mayne Pharma into a specialty pharmaceutical company in the US women’s healthcare and dermatology markets,” MYX CEO Shawn Patrick O’Brien said.
“We are excited by the significant opportunities to drive operational, commercial and financial improvements across our US women’s health and dermatology businesses, as well as in our International business.”
The transaction and one-time restructuring costs are being finalised, and are expected to yield approximately US$1 million in transaction costs, and between US$6 million and US$11 million in one-time restructuring costs.
Terms of the closing include an arm’s length, ten-year supply agreement for products to be manufactured at the MYX facility in Salisbury, South Australia.
MYX said its main objective is still on returning profitability to generate operating cash flow that supports further growth and improved returns for stakeholders.
MYX shares were trading at 1.76 per cent, trading at $4.05 at 10:30 am AEST.
