February 10, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Actavis plc will unload another one of its product lines as it continues to implement company restructuring, saying in a statement Tuesday that is will divest the U.S. rights to the Doryx brand acne treatment and related assets to Mayne Pharma for approximately $50 million.
Under the terms of the deal, Actavis will still package, distribute and promote Doryx for a transition period until May 2, following the close of the transaction at the end of February.
“Actavis currently licenses and distributes Doryx in the U.S. as part of our legacy Warner Chilcott partnership with Mayne, which is eligible to expire at the end of 2015,” said William Meury, executive vice president for commercial North American Brands at Actavis.
Doryx (doxycycline hyclate delayed-release tablets) is a tetracycline-class antimicrobial used most commonly as adjunctive therapy for severe acne. Meury said the new deal will allow Actavis to continue to see value from the product while weeding out the less useful portions of its dermatology portfolio.
“By agreeing to return the product to Mayne now, we receive value for the asset and, following a brief transition period, will enable our sales and marketing teams to focus their time and attention on supporting the expanded, industry-leading dermatology portfolio that will be part of our combined company following the acquisition of Allergan later this year,” he said.
“We are committed to investing in our expanded dermatology portfolio and in our R&D pipeline in this important category, and look forward to continuing to grow our business within dermatology,” said Meury.
Actavis plc agreed in November to buy embattled Botox maker Allergan Inc. for at least $66 billion, or $219 per share in cash and Actavis shares. The deal put an end to a contentious hostile takeover battle for Allergan from rival drugmaker Valeant Pharmaceuticals International, Inc. and values the firm at its highest price point ever.
"[The] transaction provides Allergan stockholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company,” David E. I. Pyott, chairman and CEO of Allergan, said in a statement at the time.
Actavis’s pricing was certainly more attractive: Its bid values Irvine, California-based Allergan at a sharp premium from the $176 per share bid Valeant has been attempting to get Allergan to accept. It is also higher than the $210 per share price tag Allergan had put on itself, a valuation Allergan execs lauded Monday as boon to all stakeholders.
“This combination will greatly enhance our U.S. and international commercial opportunities,” said Paul Bisaro, executive chairman of Actavis.
The newly merged firm will be led by Actavis CEO Brent Saunders and Bisaro will remain executive chairman of the board of directors.
For its part, Valeant remained firm in its original bid terms, with CEO J. Michael Pearson saying in a statement that his firm “cannot justify to its own shareholders paying a price of $219 or more per share for Allergan.”
Generic drugmaker Allergan has spent most of this year battling with activist hedge fund investor Bill Ackman, a major shareholder in the company, who has been heavily involved in the effort to force Allergan to accept a $53 billion bid for the company from Valeant.
Ackman’s $15 billion hedge fund Pershing Square Capital Management is a top shareholder in Valeant, which had been attempting a hostile takeover of Allergan since April. Valeant quickly upped its offer over a series of weeks and eventually launched a tender offer.
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