Mylan may have failed in its effort to buy OTC specialist Perrigo ($PRGO), but it is trying to quickly move on. Three months after announcing its $7.2 billion deal for Sweden’s Meda, the company says it will spend about $1 billion to get pick up topical skin meds from Renaissance Acquisition Holdings.
The company said that Mylan will pay $950 million in cash and up to $50 million in additional payments for the non-sterile, topicals-focused specialty and generics business of Renaissance, a fund that invests in pharma assets. Renaissance is privately controlled and majority-owned by RoundTable Healthcare Partners which was started in 2010 when Roundtable acquired Montreal, Canada-based Confab Laboratories and DPT Laboratories, which was based in San Antonio, TX.
The deal will give Mylan a portfolio of more than two dozen approved drugs and a pipeline of two dozen more, as well as a sales organization it says is tapped into the dermatology docs. On top of that, Mylan is buying the company’s two topicals manufacturing sites, which includes a contract manufacturing operation. It said the business had about $370 million in 2015 revenues and about 1,200 employees.
Mylan CEO Heather Bresch said Mylan already had the deal figured into its financing and would not need to float additional debt to buy it.
“This is a strong and growing business in a very attractive category, which is highly complementary to Mylan's existing assets and the pending addition of the Meda dermatology portfolio,” Bresch said in a statement.
Mylan and Meda in February announced their cash-and-stock deal on the same day that Mylan ($MYL) reported earnings that fell short of analyst forecasts. While shareholders did not greet that news with much enthusiasm, Mylan has said the Meda deal can add $0.35 to $0.40 a share to its bottom line in 2017 with combined sales of $11.8 billion based on 2015 results. Mylan gets the beefed-up over-the-counter credentials it was seeking when it tried, and failed to buy Perrigo, as well as a presence in a number of new emerging markets, including China, Southeast Asia and Russia. Mylan expects to extract $350 million in annual savings from Meda.
The Meda deal is much smaller than the roughly $26 billion that Mylan was prepared to pay for OTC specialist Perrigo. When it announced the Meda deal, Chairman Robert Coury said the deal for Meda would not keep Mylan from other acquisitions.
- read the announcement
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