By Maria Armental and Robb M. Stewart
Actavis PLC (ACT) will sell the U.S. rights to a acne treatment
as it seeks to refine its dermatology portfolio ahead of its
purchase of Botox maker Allergan Inc.
The Doryx deal, valued at about $50 million and expected to
close by month's end, follows last week's announcement that
AstraZeneca PLC (AZN) was buying Actavis' branded respiratory
business in the U.S. and Canada for an initial $600 million.
Actavis' planned $66 billion purchase of Allergan--which trumped
Valeant Pharmaceuticals International Inc.'s (VRX) long-running
hostile bid, backed by billionaire hedge-fund manager William
Ackman--is expected to close in the second quarter, making Actavis
one of the world's largest drug makers by sales.
The combined Actavis-Allergan will be led by Actavis Chief
Executive Brent Saunders, who has overseen Actavis's rapid growth
with more than $100 billion in mergers and acquisitions in a little
more than a year, capped by the deal for Allergan.
Dublin-based Actavis currently licenses and distributes Doryx in
the U.S. as part of a partnership with Warner Chilcott PLC, which
Actavis bought in 2013, and Australian specialty pharmaceutical
company Mayne Pharma Group Ltd. (MYX.AU).
Doryx is an oral tablet used for severe acne and as a treatment
for certain bacterial infections.
Mayne Pharma said it expects the product to add an average $2.7
million a month in earnings before interest, tax, depreciation and
amortization beginning in July.
Under the terms of the agreement, Actavis will continue to
package, distribute and promote the acne treatment until May 2.
In May, Mayne Pharma will establish a U.S. specialty brands
division, staffed by 66 workers, including the former vice
president of Warner Childott's U.S. commercial operations, Andy
McClenaghan.
Mayne Pharma currently has two drug development and
manufacturing facilities, based in Australia and Greenville,
N.C.
--Michael Calia contributed to this article.
Write to Maria Armental at maria.armental@wsj.com and to Robb M.
Stewart at robb.stewart@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires