Mylan to Buy Women’s Health Business in India for $800M
Wednesday, February 4, 2015
Mylan Inc. said Monday that it is acquiring some women’s health care businesses from an Indian partner in a deal that could be worth more than $800 million and help it capitalize on demand for contraceptives in developing countries.
The Cecil-based generic drugmaker said the deal with Famy Care Ltd. would strengthen its global presence in women’s health care. It is the latest in a string of acquisitions and complements Mylan’s pending purchase of the overseas generics business of Abbott Laboratories, which makes women’s health products in Europe.
Since 2008, Mylan has had an exclusive agreement with Famy to sell its oral contraceptives in North America. Taking over Famy’s businesses gives Mylan more leverage in a women’s health care market — estimated by Morningstar at $7 billion — that is growing 6 percent annually, Mylan said.
“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 wrote in a statement.
Based in Mumbai, Famy makes a variety of contraceptives and hormone-replacement therapy products that are sold in 90 countries, including emerging markets in Africa, India and Brazil. It claims to be the world’s largest producer of generic oral contraceptive pills, with its products sold to 15 percent of all women who use oral contraceptives. The company has four manufacturing plants in India, two of which are subject to oversight by the Food and Drug Administration and the European Union.
It is a logical deal for Mylan that not only expands the company’s reach but gives it established manufacturing capabilities in developing countries, said Ronny Gal, an analyst at Sanford C. Bernstein & Co.
- Health Care