Generic drugmaker Mylan has agreed to acquire Renaissance Acquisition's non-sterile, topicals-focused speciality and generics business for $950m.
The acquisition is in line with Mylan's strategy to expand within the dermatology / topicals industry, which complements the company's existing assets and the pending addition of the Meda dermatology portfolio.
The deal will expand Mylan's portfolio of more than 1,400 generic and branded pharmaceuticals with the addition of Renaissance's range of approximately 25 branded and generic topical products, as well as an active pipeline of approximately 25 products.
The agreement also includes Renaissance's established sales and marketing infrastructure, targeting dermatologists in the US.
Mylan president Rajiv Malik said: "With the addition of the business's broad and durable portfolio, exciting pipeline of topical products, and strong manufacturing and R&D capabilities, we will have critical mass in the dermatology / topicals area and catapult to a leading position in this space.
"We see significant opportunities to maximise our combined dermatology / topicals business and integrated operating platform on a worldwide basis, and expect it to be yet another key global franchise for us, even further strengthening and diversifying our business."
Additionally, Mylan will acquire an integrated manufacturing and development platform and a topicals-focused contract development and manufacturing organisation.
As per the agreed terms, Renaissance will retain its sterile-focused businesses and associated manufacturing facility.
Mylan CEO Heather Bresch said: "This acquisition was accounted for in our anticipated capital structure and does not require any additional financing. As such, we see no impact to the leverage ratio of 3.8x debt-to-adjusted EBITDA we anticipated following the closing of the Meda transaction, and we will retain ample financial flexibility for future value-creating initiatives."
Subject to regulatory approval and other customary closing conditions, the transaction is expected to be completed by the end of the third quarter of this year.
The company recently launched Frovatriptan Succinate Tablets and Hydralazine Hydrochloride Injection USP in the US.
Mylan's 2.5mg Frovatriptan Succinate Tablets are used to treat acute migraine headaches in adults, while Hydralazine Hydrochloride Injection is used for the treatment of severe essential hypertension when the drug cannot be given orally or when there is an urgent need to lower blood pressure.