Mylan to buy contraceptive businesses of Famy Care for $800 mn

Under the deal, Famy Care will spin off its women's healthcare business under a court approved scheme of demerger

US-based pharmaceuticals major Mylan Inc has signed a deal to acquire the female health care businesses of Famy Care Ltd, a specialty women’s health care company, for $750 million in cash and additional contingent payments of up to $50 million.

Under the deal, signed through Mylan’s Indian subsidiary, Mylan Laboratories Ltd, Famy Care will spin off its women’s health care business under a court-approved scheme of de-merger. Post the de-merger, Mylan will acquire the shares of the new company.

Started in 1990 by Jyotiprasad Taparia, Famy Care is the third-largest maker of over-the-counter contraceptive pills and injectables and the largest producer of copper-Ts globally. Other major products from the company include rings for tubal ligation, as well as condoms. Famy Care is learnt to have recorded a revenue of Rs 400 crore last year.

Hong Kong-based AIF Capital has 18 per cent stake in Famy Care, which it bought  for Rs 175 crore in 2010.

Mylan Chief Executive Officer Heather Bresch said, “In 2008, Mylan established a partnership with Famy Care, significantly enhancing its presence in the women’s health care segment in the US and other developed markets. With today’s acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area.”

The city-based Famy Care sells oral and injectable contraceptives, intra-uterine devices, and hormone-replacement therapy products. It has four manufacturing facilities in India, two of which have been approved by the US Food and Drug Administration (FDA) and the European Union.

Taparia, Famy Care’s non-executive chairman, said, “This transaction represents a significant milestone for Famy Care and its employees, who have created a world-class women’s health care franchise. We foresee significant opportunities in the women’s health care business across developed and emerging markets. The proposed transaction provides an opportunity for our team to capture the opportunity in an even more effective manner.”

While Centerview Partners and Goldman Sachs were the financial advisors to Mylan, Credit Suisse advised Famy Care on the deal.

Mylan, among the top five generic companies globally, has been expanding its presence in India for a while. It entered India in 2007, with a $730-million buyout of Matrix Laboratories. In 2013, it acquired the specialty injectables unit of Bengaluru-based Strides Arcolab for $1.75 billion.

Mylan and Famy Care have an exclusive partnership dating back to 2008, under which Famy Care develops and supplies over-the-counter drugs to Mylan for distribution to customers in the US and a few other markets. In the US, Famy Care and Mylan have a portfolio of 12 approved products, with abbreviated new drug applications for 30 drugs pending FDA approval.

Centerview Partners and Goldman Sachs & Co. were financial advisors to Mylan while Credit Suisse advised Famy Care.