Mylan To Buy Famy Care Businesses From Famy Care In $800 Mln Deal

(RTTNews) - Generic drug maker Mylan, Inc. (MYL) agreed Monday to acquire certain female reproductive health care businesses from Famy Care Ltd. for $750 million in cash plus additional contingent payments of up to $50 million. The move will help Mylan create a world-class women's health care franchise in order to tap the large women's health care market in Europe.

Mumbai, India-based Famy Care is a specialty women's health care company with global leadership in generic oral contraceptive products (OCPs). Its products include oral and injectable contraceptives, intra-uterine devices (IUDs), tubal rings and hormone-replacement therapy products.

Famy Care has a strong presence in the private, institutional and non-governmental organization sectors and markets its products in more than 90 countries around the world.

"In 2008, Mylan established a partnership with Famy Care, significantly enhancing its presence in the women's health care segment in the U.S. and other developed country markets. With today's acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area," Mylan CEO Heather Bresch said in a statement.

The deal will see Famy Care spin-off its female health care businesses under a court approved scheme of demerger, with Mylan acquiring the shares of the new resulting company.

Mylan noted that the deal complements its pending $5.3 billion acquisition of Abbott's branded generics pharmaceuticals business in developed markets , which also includes a women's health care portfolio and sales and marketing capabilities.

Further, the deal will also add Famy Care's leading hormonal contraceptives business and make it a leader in high-growth emerging markets around the world.

Canonsburg, Pennsylvania-based Mylan said the deal is expected to immediately add to Mylan's adjusted earnings per share upon closing.

The deal, which has the unanimous approval of both companies' boards of directors, is expected to close in the second half of 2015, subject to regulatory approvals and certain closing conditions.

Mylan noted that it already has an exclusive partnership dating to 2008 with Famy Care. The partnership saw Famy Care developing and supplying oral contraceptive products products to Mylan for distribution to customers in the U.S. and certain other markets.

Meanwhile, Famy Care and Mylan have a portfolio of 12 approved products in the U.S., with abbreviated new drug applications pending FDA approval for 30 products.

MYL closed Friday's regular trading session at $53.15, down $1.10 on a volume of 6.28 million shares.