"Approved high-value products include a hormonal vaginal ring, a birth control pill and a cardiovascular product. Under the terms of the agreement, Dr. Reddy’s will get the portfolio for an upfront payment of approximately $90 million (USD) in cash, contingent payments of up to $15 million (USD), consideration towards inventory and credits for certain accrued channel liabilities to be determined on the closing date," the company statement said.

The acquisition provides the company's North American unit with a significant foothold in the women’s health space, according to Marc Kikuchi, chief executive officer, North America business. "The acquisition aligns with our stated strategy to enhance our portfolio in our chosen growth markets. We are well-positioned to integrate the portfolio and grow the business successfully.”

Dr Reddy's CEO Erez Israeli the U.S. has always been an important market for the company. "The portfolio of products acquired from Mayne Pharma is a strategic fit with our growth objectives. The portfolio includes some high entry-barrier products. It also complements our existing portfolio by introducing products focused on women’s health. Our strong balance sheet enables us to acquire products of strategic importance to strengthen our base business and build for long-term growth.”

Notably, the value of the total addressable market for the pipeline and approved non-marketed products in the U.S. is around $3.6 billion for the calendar year ending in December 2022.

Earlier this month, Dr. Reddy’s was included in the Bloomberg Gender-Equality Index (GEI) 2023 for a sixth consecutive year, making it the only Indian pharma company to be listed in the index that includes 484 companies representing 11 sectors, 45 countries and a market capitalisation of $16 trillion. The index measures gender equality across internal company statistics, employee policies, external community support and engagement, and gender-conscious product offerings.

For the quarter ending December 31, 2022, Dr Reddy's reported a consolidated quarterly profit of ₹1,247.1 crore, up from ₹706.5 crore in the year-ago period. Its quarterly revenue from operations had surged to ₹6,770 crore as compared to ₹5,319 crore consolidated profit in the year-ago period.

Dr Reddy's stocks

Dr. Reddy's to buy Mayne Pharma’s U.S. biz for $105 mn; stock down