Mayne Pharma to buy portfolio of generic drugs from Teva, Allergan for $652 million

Teva and Allergan agreed to sell a portfolio of US generic products to Mayne Pharma for $652 million in cash, the Australian company reported. The divestiture of the products by Teva was required by the US Federal Trade Commission (FTC) in connection with its proposed $40.5-billion acquisition of Allergan's generic drug business.

Earlier this month, Teva and Allergan agreed to sell "a broad portfolio" of generic products, including 15 currently sold generics and multiple drugs in the pipeline, to Impax Laboratories for about $586 million. The transaction, as well as others with Dr. Reddy's Laboratories and Sagent Pharmaceuticals, was part of the divestiture process ordered by the FTC in relation to Teva and Allergan's deal.

Mayne noted that the portfolio it will buy consists of 37 approved products and five FDA filed products across a range of therapeutic areas. The Australian company added that the drugs align with its focus on complex pharmaceutical formulations and includes difficult-to-manufacture, modified-release tablets and capsules, soft-gel capsules and transdermal patches.

Commenting on the transaction, Mayne CEO Scott Richards said the acquisition "transforms" the company's generic products division "into a top 25 player in the US retail generics market." Mayne added that the product portfolio is expected to add more than $237 million to sales in 2017.

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