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Mayne adds to pain relief portfolio.

GREENVILLE, N.C. -- Mayne Pharma USA has begun expanding its North American product portfolio by acquiring well-known branded pharmaceuticals used to treat pain.

The company recently announced that it has entered into an agreement to acquire the Esgic, Esgic Plus, Lorcet and Lorcet Plus brands from Forest Laboratories Inc. The cost of the deal is $12 million, which consists of an up-front 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 ended 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 president Stefan Cross. "Our company possesses the strength and agility to respond quickly when new and attractive business opportunities arise."

As president of Mayne Pharma USA, Cross directs the company's established business operations and new business development initiatives within the United States. "I fully expect that we will enter into more acquisitions and partnerships like these in the months to come," he commented.

Esgic tablets and capsules and Zebutal capsules are used to treat tension headaches; Lorcet tablets are indicated for the relief of moderate to moderately severe pain. These products had sales of $10 million in the 12 months ended December 2013, according to IMS Health. The total current annual market for these products, including their generic versions, is more than $400 million.

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 taxes and earnings per share accretive in its first full financial year (fiscal year 2015).

Mayne Pharma USA consists of two main business segments that focus on contract pharmaceutical services and the development and manufacturing of branded and generic pharmaceutical products.

The company's contract services subsidiary, Metrics Inc., is a leading provider of solid oral dose formulation development.

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Title Annotation:RX: RETAIL PHARMACY: Branded Drugs
Publication:Chain Drug Review
Date:Mar 17, 2014
Words:356
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