Mayne Pharma USA has begun expanding its North American product portfolio by acquiring well-known branded pharmaceuticals used to treat pain. The company announced today that it has entered into a binding agreement to acquire the ESGIC™, ESGIC PLUS™, LORCET™ and LORCET PLUS™ brands and related assets from Forest Laboratories Inc., headquartered in New York, N.Y. The cost of the deal is $12 million, which consists of an upfront payment of $10 million, plus an earn-out of up to $2 million, payable quarterly calculated on a percentage of future net product sales.
In addition, Mayne Pharma acquired the ZEBUTAL™ trademark and related assets in the United States from Shionogi Inc. in November 2013. ZEBUTAL™, a product containing butalbital, acetaminophen and caffeine, had sales of $5 million in the 12 months ending December 2013.
“This agreement, combined with the recent acquisition from Shionogi, demonstrates Mayne Pharma’s commitment to growing its business platform within North America,” said Stefan Cross, president. “Our company possesses the strength and agility to respond quickly when new and attractive business opportunities arise, and I fully expect that we will enter into more acquisitions and partnerships like these in the months to come.”
ESGIC™ tablets and capsules and ZEBUTAL™ capsules are used to treat tension headaches, and LORCET™ tablets are indicated for the relief of moderate to moderately severe pain. These products had IMS Health sales of $10 million in the 12 months ending December 2013. The total current annual market for these products, including their generic versions, is more than $400 million, according to IMS Health.
These acquisitions – which allow Mayne Pharma USA to expand its product portfolio beyond generic products – are expected to be immediately additive to Mayne Pharma Group’s net profit after tax (NPAT) and EPS accretive in its first full financial year (FY15).
As president of Mayne Pharma USA, Cross directs the company’s existing business operations and new business development initiatives within the United States.