Generic drugs giant Dr. Reddy’s is acquiring the U.S portfolio of Mayne Pharma in a deal that includes a birth control pill Mayne has described as its most significant product opportunity.
Under deal terms announced Monday, Hyderabad, India-based Dr. Reddy’s will pay $90 million up front to gain a portfolio of 45 products that Mayne said accounted for $111 million in revenue for fiscal 2022.
Mayne, which is based in Salisbury, Australia, has a U.S. portfolio that spans several women’s health products including Haloette, a vaginal ring contraceptive, and Nextstellis, a birth control pill. Since Nexstellis’s U.S. launch in mid-2021, the product has experienced rapid sales growth.
In a letter included in the company’s 2022 annual report, Frank Condella, board chair of Mayne, wrote that despite commercialization hurdles presented by Covid-19, more than 5,300 clinicians have written prescriptions for Nextstellis, which is used by about 15,000 women. The product is part of a market for short-acting combined hormonal contraceptives (CHC) that is $3.2 billion in the U.S. and 60 million Australian dollars in Australia.
“Nextstellis remains the company’s most significant product opportunity with sales momentum expected to accelerate following the recently launched direct-to-consumer campaign in the U.S.,” Mayne said in its 2022 annual report.
The direct-to-consumer market push includes promotion on platforms that include Facebook and Instagram, which in turn drives up traffic to the Nextstellis product website. The company also has a partnership with GoodRx, which brings the product to the attention of consumers and healthcare providers that are active users of its digital healthcare platform.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Also included in the deal are four products in Mayne’s pipeline and 40 approved products that are not yet on the market. Dr. Reddy’s and Mayne say the value of the total addressable U.S. market for the pipeline and approved non-marketed products is about $3.6 billion, citing research from clinical research and healthcare analytics company IQVIA.
Dr. Reddy’s portfolio of generic medicines spans gastrointestinal, cardiovascular, diabetes, oncology, pain management, and dermatology. In a prepared statement, Marc Kikuchi, CEO of Dr. Reddy’s North America business, said the Mayne deal fits with his company’s growth strategy.
“This important acquisition provides our North America organization with a significant foothold in the women’s health space,” he said. “The acquisition is in line with our stated strategy to enhance our portfolio in our chosen growth markets.”
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