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Greenville, NC, United States, 2014/02/12 - Mayne Pharma USA has acquired select brands from Forest Laboratories Inc. for $10M plus $2M performance-based earn-out; purchase complements brand acquisition from Shionogi completed in November 2013 [ASX: MYX] - MetricsInc.com.
Mayne Pharma USA has begun expanding its North American product portfolio by acquiring well-known branded pharmaceuticals used to treat pain.
The company announced today that it has entered into a binding agreement to acquire the ESGIC™, ESGIC PLUS™, LORCET™ and LORCET PLUS™ brands and related assets from Forest Laboratories Inc., headquartered in New York, N.Y. The cost of the deal is $12 million, which consists of an upfront payment of $10 million, plus an earn-out of up to $2 million, payable quarterly calculated on a percentage of future net product sales.
In addition, Mayne Pharma acquired the ZEBUTAL™ trademark and related assets in the United States from Shionogi Inc. in November 2013. ZEBUTAL™, a product containing butalbital, acetaminophen and caffeine, had sales of $5 million in the 12 months ending December 2013.
“This agreement, combined with the recent acquisition from Shionogi, demonstrates Mayne Pharma’s commitment to growing its business platform within North America,” said Stefan Cross, president. “Our company possesses the strength and agility to respond quickly when new and attractive business opportunities arise, and I fully expect that we will enter into more acquisitions and partnerships like these in the months to come.”
ESGIC™ tablets and capsules and ZEBUTAL™ capsules are used to treat tension headaches, and LORCET™ tablets are indicated for the relief of moderate to moderately severe pain. These products had IMS Health sales of $10 million in the 12 months ending December 2013. The total current annual market for these products, including their generic versions, is more than $400 million, according to IMS Health.
These acquisitions which allow Mayne Pharma USA to expand its product portfolio beyond generic products are expected to be immediately additive to Mayne Pharma Group’s net profit after tax (NPAT) and EPS accretive in its first full financial year (FY15).
As president of Mayne Pharma USA, Cross directs the company’s existing business operations and new business development initiatives within the United States.
About Mayne Pharma USA
Mayne Pharma USA consists of two main business segments that focus on contract pharmaceutical services and the development and manufacturing of branded and generic pharmaceutical products.
The company’s contract services subsidiary, Metrics Inc., is a leading provider of solid oral dose formulation development, manufacturing and analytical support services to clients worldwide.
Metrics’ areas of expertise include fast-track, proof-of-concept, and first-time-in-man programs; potent and cytotoxic product handling; clinical trial materials manufacturing for Phase I, II and III trials; and analytical method development and validation services leading to commercial-scale manufacturing. Capabilities include highly potent and unstable compounds; Schedule II-V controlled substances; and products with poor bioequivalence, for which it offers a vast portfolio of drug delivery methods.
Mayne Pharma USA also distributes a range of branded and generic pharmaceutical products through subsidiaries that include Midlothian Inc. and Libertas Pharma.
About Mayne Pharma Group Limited
Mayne Pharma Group Limited is a publicly traded specialty pharmaceutical company listed on the Australian Securities Exchange (ASX: MYX). The company develops and manufactures branded and generic products globally either directly or through distribution partners while applying its drug-delivery expertise for contract development and manufacturing services.
Mayne Pharma has a 30-year track record of innovation and success in developing new oral drug delivery systems, and these technologies have been successfully commercialized in numerous products that have been marketed around the world.
Mayne Pharma has drug development and manufacturing facilities in Salisbury, Australia, with expertise in formulating complex oral dose forms, including controlled substances, modified release products and inherently unstable compounds.