Mayne Pharma completes generic drug acquisition
The Daily Reflector by Juliette Cooke Greenville, NC (August 4, 2016) - Mayne Pharma has completed its $652-million transaction with Teva Pharmaceutical Industries Limited and Allergan, acquiring a portfolio of 42 pharmaceutical products, according to a statement released Wednesday. The deal was part of the largest generic drug divestiture overseen by the Federal Trade Commission and Mayne Pharma acquired the greatest number of products. Mayne Pharma’s U.S. headquarters are located in Greenville and is currently building a new solid oral-dose commercial manufacturing facility locally. When completed the new facility will more than quadruple existing U.S. manufacturing capacity. Following this acquisition, $80 million has been committed to the Greenville expansion, which will introduce new capability, such as multi-particulate layering, beadcoating fluid bed technology and significantly increased capacity to manufacture highly potent products. The newly acquired portfolio makes Mayne Pharma the second largest provider of generic oral contraceptives and moves it into the top 25 retail generic pharmaceutical companies in the United States, the release stated. Officials say the portfolio aligns with the company’s focus on complex pharmaceutical formulations and includes transdermal patches, soft-gel capsules, semi-solids and modified-release capsules and tablets. “We are extremely pleased to complete this transaction that establishes Mayne Pharma as a key player in the U.S. generic market,” said Stefan Cross, president of Mayne Pharma USA. “This portfolio is highly profitable and will significantly extend our size, scale and reach in the United States. Recent investments in people, systems and facilities will readily support the rapidly growing organization and ensure we continue to deliver exceptional service and high-quality products to our customers. Since Mayne Pharma entered the U.S. market in 2012, our company has established its organization so it could act quickly when attractive growth opportunities like this presented themselves.” The company also committed a $20-million investment at the company’s manufacturing facility in Salisbury, Australia, to expand fluid bed processing capacity and add new potent handling capability. It is expanding its global workforce to more than 700 employees with 100 new roles added in the last year alone to support existing and future growth of the business. The Teva/Allergan acquisition was financed through an extension to existing debt facilities and an underwritten $661-million equity raising that was oversubscribed by both institutions and retail investors. “Our expanded product offering from the Teva/Allergan acquisition provides Mayne Pharma with an opportunity to deepen relationships across the industry – with patients and customers and continuing through to our contract manufacturing and active pharmaceutical ingredient partners. Mayne Pharma’s focus has always been to deliver a reliable supply of high-quality, cost-effective medications that enhance the quality of patient lives,” Cross said. Mayne Pharma now has a diversified commercial U.S. product portfolio with 60 marketed products as well as a strong pipeline that includes 19 products pending at the FDA and another 20+ products in various stages of development.