Mayne Pharma USA Expands Beyond Generics
By Liisa Vexler
With the acquisition of popular pain management pharmaceutical brands, Mayne Pharma USA is demonstrating its commitment to growing its product offerings in North America. ESGIC, ESGIC PLUS, LORCET, and LORCET PLUS are among the brands that Mayne Pharma will acquire as well as portions of the New York, N.Y. company, Forest Laboratories Inc. In total, the contract will cost the company $12 million, including a down payment of $10 million and up to $2 million in earn-out payments to be paid quarterly based on a percentage of projected net sales.
In November 2013, Mayne Pharma acquired the brand Zebutal, made up of butalbital, acetaminophen and caffeine. This product, formerly owned by Shionogi Inc., had sales of $5 million in 2013.
North America has become a huge growth center for Mayne Pharma. President Stefan Cross says these recent attainments and investments prove that they are committed to the expansion of their company in North America. Cross also noted, “Our company possesses the strength and agility to respond quickly when new and attractive business opportunities arise, and I fully expect that we will enter into more acquisitions and partnerships like these in the months to come.”
For the treatment of tension headaches, Mayne Pharma now has ESGIC tablets and capsules and ZEBUTAL capsules. In addition, moderate to moderately severe pain can be treated by the company’s LORCET tablets. According to IMS Health, these products combined, in addition to the generic versions, have the potential to reach sales up to $400 million annually. In 2013, these products generated sales of $10 million.
With these new additions to Mayne Pharma USA, the company is now capable of increasing their profits beyond those provided by generic medications alone. This is projected to immediately be reflected in profits for Mayne Pharma in the coming year.