February 2, 2015
By Mark Terry, BioSpace.com Breaking News Staff
Pittsburgh, Penn.-based Mylan Inc. announced today that it has acquired several women’s health care business units from Mumbai, India-based Famy Care Limited. The deal was handled through Mylan Laboratories Limited, Mylan’s Indian subsidiary.
Mylan will buy certain female reproductive health care businesses for $750 million in cash, with additional payments up to $50 million contingent on development and regulatory milestones. The deal is structured in such a way that Famy Care will spin off its women’s health care businesses under a demerger plan that has been approved by the courts. After the demerger, Mylan will buy the shares of the new spinoff company.
“In 2008, Mylan established a partnership with amy Care, significantly enhancing its presence in the women’s health care segment in the U.S. and other developed country markets,” said Heather Bresch, chief executive officer of Mylan in a statement. “With today’s acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area. We see many opportunities to tap the large women’s health care market in Europe, particularly through our pending Abbott deal.”
On Jan. 29, 2015, Mylan announced a Special meeting of Shareholders, where the shareholders approved Mylan’s pending acquisition of Abbott’s non-U.S. developed markets specialty and branded generics business and reorganization in the Netherlands. Abbott will transfer those products to a new public company organized in the Netherlands dubbed “New Mylan.” Mylan will then merge with a wholly owned subsidiary of New Mylan, and New Mylan will take over the role of parent company.
Famy Care markets a range of women’s health products that include oral and injectable contraceptives, intra-uterine devices (IUDs), and hormone-replacement products. Famy Care is the largest producer of generic oral contraceptives in the world and runs four manufacturing facilities in India, two approved by the U.S. Food and Drug Administration (FDA) and the European Union.
“This transaction represents a significant milestone for Famy Care and its employees, who have created a world-class women’s health care franchise,” said J.P. Taparia, non-executive chairman of Famy Care in a statement. “We foresee significant opportunities in the women’s health care business across developed and emerging markets, and the proposed transaction provides an opportunity for our team to capture the opportunity in an even more effective manner. Famy Care and Mylan have shared a very strong partnership since 2008, and the Famy Care team looks forward to taking our vision and ambitions to the next level within Mylan.”
