MYX Mayne Pharma Group Ltd

   By Rebecca Thurlow 
 

SYDNEY--Mayne Pharma Group Ltd. (MYX.AU) acquired a portfolio of U.S. generic drugs from Teva Pharmaceutical Industries Ltd. (TEVA) and Allergan PLC (AGN) for US$652 million.

The Adelaide-based drug manufacturer and distributor said Tuesday it will fund the deal, and costs, via an A$888 million equity raising (US$652 million) and an extension of its debt facility.

The portfolio consists of 37 approved products, and five products filed with the U.S. Food and Drug Administration, "in attractive markets with limited competition," the company said.

Mayne Pharma said the acquisition "significantly transforms" the scope and breadth of its U.S. generics division and is expected to propel the firm into the top 25 retail generic pharmaceutical companies and the top two in the generic oral contraceptives market in the U.S.

The acquisition price represents less than six times projected fiscal earnings before interest tax depreciation and amortization for the portfolio, the company said.

The acquired portfolio is expected to contribute sales of US$237 million in fiscal 2017, adding "very significantly" to earnings per share, the company added.

-Write to Rebecca Thurlow at rebecca.thurlow@wsj.com

(END) Dow Jones Newswires

June 27, 2016 19:58 ET (23:58 GMT)

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