Mylan said Monday that it signed a definitive agreement to acquire certain assets from Indian company Famy Care for up to $800 million, a move designed to "accelerate" its growth in the global women's healthcare space. Mylan noted that the deal, which includes $750 million in cash plus additional contingent payments of up to $50 million, will make it "a hormonal contraceptives leader" in high-growth emerging markets.
Heather Bresch, Mylan CEO, said "in 2008, Mylan established a partnership with Famy Care, significantly enhancing its presence in the women's healthcare segment in the US and other developed country markets." She added that as part of the new deal "we see many opportunities to tap the large women's healthcare market in Europe...the prospect of driving additional value from this business in North America; and exciting growth potential in emerging markets."
Mylan noted that Famy Care offers a wide range of women's health products including oral and injectable contraceptives, intra-uterine devices, tubal rings and hormone-replacement therapy products. The drugmaker added that the Indian company "also has strong research and development capabilities in the women's healthcare segment, including in the development of hormonal and high-potency formulations."
Under the transaction, which has unanimously been approved by both companies' boards, Famy Care will spin off its female healthcare businesses, with Mylan acquiring the shares of the resulting company. Mylan said it expects the deal to close in the second half, with the acquisition to be immediately accretive to adjusted earnings per share.
According to Mylan, the deal for Famy Care's assets "especially complements" its pending acquisition of Abbott's non-US developed markets specialty and branded generics business, which also includes a women's healthcare portfolio and sales and marketing capabilities. Mylan's shareholders recently approved the latter transaction.
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