Generic drug manufacturer Mayne Pharma, which operates a huge production plant in Greenville, is adding 37 approved drugs and rights to five more under development in a $652 million deal with Teva Pharmaceutical and Allergan.
The deal was announced Tuesday.
Mayne said the acquisition, which came about as part of a divestiture in Teva’s pending acquisition of Allergan’s generic drug business, will impact its Greenville operations as well as a second plant it owns in Australia.
“This will accelerate the use of existing and previously announced expansions to manufacturing capacity, and enable additional margin to be captured over time, improving overhead recovery and the return on recent capital invested to expand these facilities,” the company said.
“Up to eleven of the acquired products will be transferred into Mayne Pharma’s commercial manufacturing facilities in Greenville, N.C., and Salisbury, South Australia. This will accelerate the use of existing and previously announced expansions to manufacturing capacity, and enable additional margin to be captured over time, improving overhead recovery and the return on recent capital invested to expand these facilities.”
Last year, Mayne announced a $65 million expansion of its Greenville plant and the addition of 110 jobs.
Mayne is paying cash for the drugs.
The acquisition transforms Mayne Pharma’s Generic Products Division into a top 25 player in the U.S. retail generics market, diversifying Mayne Pharma’s earnings across a broad range of products, therapeutic areas and technologies,” said Mayne CEO Scott Richards in a statement.
“This attractive Portfolio spans multiple dosage forms and complements our expertise in higher-value niche, differentiated products. The on-market products have strong shares in stable, mature markets, while the pipeline products are expected to deliver additional growth in attractive markets as they are launched over the next couple of years.”
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