Mylan is acquiring the business on a cash-free, debt-free basis and expects to finance the transaction using a combination of cash and available borrowings under existing credit facilities
Mylan is to acquire the non-sterile, topical-focused speciality and generics business of Renaissance Acquisition Holdings for US$950m in cash at closing, plus additional contingent payments of up to $50m, subject to customary adjustments.
The business will bring Mylan a complementary portfolio of approximately 25 branded and generic topical products, an active pipeline of approximately 25 products and an established US sales and marketing infrastructure targeting dermatologists.
The business also brings Mylan an integrated manufacturing and development platform and a leading topical-focused contract development and manufacturing organisation (CDMO).
Renaissance, privately controlled and majority owned by RoundTable Healthcare Partners, will retain its sterile-focused businesses and associated manufacturing facility.
Mylan CEO Heather Bresch commented: ‘The dermatology/topical space has long been an area of focus for Mylan and one that we have targeted for expansion. This is a strong and growing business in a very attractive category, which is highly complementary to Mylan's existing assets and the pending addition of the Meda dermatology portfolio. We see significant opportunities to accelerate the growth potential of the business as part of the global Mylan platform, as we maximise our combined assets across customer channels and geographies.’
Mylan President Rajiv Malik said: ‘With the addition of the business's broad and durable portfolio, exciting pipeline of topical products, and strong manufacturing and R&D capabilities, we will have critical mass in the dermatology/topical area and catapult to a leading position in this space. We see significant opportunities to maximise our combined dermatology/topical business and integrated operating platform on a worldwide basis, and expect it to be yet another key global franchise for us, even further strengthening and diversifying our business.’