Australia’s Mayne Pharma is investing about $90 million to expand its capacity at plants in the U.S. and Australia as part of a move to become a notable player in the U.S. Now it has a bunch of new products to manufacture in them.
Mayne ($MYX) has scooped up 42 products from Teva ($TEVA) and Allergan ($AGN) as the two quickly off-load assets to help win antitrust clearance for Teva’s $40.5 billion buyout of Allergan’s generics biz. With its sights set squarely on U.S. generics growth, Mayne will buy 37 marketed generics plus 5 under review at the FDA. The transaction is “expected to be very significantly accretive” to Mayne’s fiscal 2017 EPS and add more than $237 million in sales next year at margins higher than 50%, the company said.
Mayne will transfer production of up to 11 products to its plants in Greenville, NC, and Salisbury, South Australia, making quick use of “existing and previously announced” investments in hopes of growing margins over time, it said in an announcement.
Just two weeks ago, Mayne unveiled $25 million in planned improvements at its Salisbury site, in part to provide more capacity for its Doryx acne brand.
Last year it laid out plans to invest $65 million to more than double capacity at the Greenville, NC, facility it got in 2012 with the acquisition of Metrics. That project includes a 126,000-square-foot oral-dose facility that is expected to be operational by 2018. The company said the expenditure will also include the repurposing of existing space to expand contract services. It says it will add about 110 positions to its workforce of 350 it currently has at the site.
While not disclosing specifics of the Teva-Allergan portfolio it's buying, Mayne said the product lineup boasts high market shares and few competitors. The company believes it can push future growth by "leveraging existing relationships with customers and suppliers.” It’s bulked up in its management ranks to handle the growth. The products will reportedly move Mayne from the 75th largest U.S. generics player to the 25th.
“We see great growth opportunities for our US business,” CEO Scott Richards told the Sydney Morning Herald. “We are not interested in Asia or Europe. In the U.S. we’ve got critical mass there now."
Tuesday’s acquisition comes as Teva sheds products as mandated by the FTC. Since it announced its megadeal a year ago, the Petah Tivka-based generics giant has divested 18 drugs to Hayward, CA’s Impax Laboratories ($IPXL) for $586 million, 5 unapproved meds to Schaumburg, IL-based Sagent Pharmaceuticals ($SGNT), and 8 more drugs to India’s Dr. Reddy’s Laboratories ($RDY) for $350 million.
- here's the release
- get more from the Sydney Morning Herald
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