THE Australian generics sector is set for another shake-up, with Mylan to pay $188 million for Aspen Pharmacare's local range of prescription and over-the-counter (OTC) products.
The move follows a Dec agreement between the companies which saw Aspen products distributed by Mylan's local offshoot, Alphapharm.
That deal included an option for Mylan to acquire the portfolio, which has now been exercised.
The products that are the subject of the distribution and acquisition deal recorded sales of A$55 million for the year to 30 Jun 2018.
Of the $188 million for the portfolio, $93 million is payable by 29 May 2019, followed by $30 million in Jan 2020 and up to $65 million payable in Sep 2020, with the value of the final payment "contingent on Aspen satisfying certain conditions".
Aspen also noted it had discontinued or terminated several third party licenses in Australia.
Aspen said the divestment was in line with its ongoing approach to portfolio management and its intention to "not only acquire value enhancing products, but to also divest of non-core assets".
The proceeds will be used to reduce Aspen's debt, along with money from the sale of its infant formula business in New Zealand to Lactalis, which has finally been approved by the NZ Overseas Investment Office (PD 13 Mar).
Aspen core OTC brands: Zantac, Coloxyl, GastroStop, Ural, Cartia and Maltofer are not included.
It's unclear what the implications of the deal are for the Manly Sea Eagles NRL team, which just last week announced Aspen as a major new corporate partner.
The above article was sent to subscribers in Pharmacy Daily's issue from 22 May 19
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