• New portfolio expected to generate $237m in sales in 2017
  • Teva, Allergan divesting assets to gain approval for own deal

Australia’s Mayne Pharma Group Ltd. agreed to buy a basket of generic drugs from Teva Pharmaceutical Industries Ltd. and Allergan Plc. for $652 million, as the two larger companies divest products to gain antitrust approval for their own deal.

Mayne Pharma will acquire 37 marketed drugs and 5 more that are in development, according to a statement to Australia’s stock exchange Tuesday. The acquired products are expected to generate sales of $237 million in 2017, the company said.

It will fund the acquisition by extending an existing debt facility and by selling about A$888 million ($653 million) in shares, according to the statement. The company’s shares, which were halted as the deal was announced, have gained 55 percent in the past year, closing at A$1.49 on Monday.

“This attractive portfolio spans multiple dosage forms and complements our expertise in higher-value, niche and differentiated products," Scott Richards, Mayne Pharma’s chief executive officer, said in the statement.

Teva and Allergan have been selling off assets to facilitate Teva’s $40.5 billion purchase of Allergan’s generics business, which the companies have said will close by the end of this month. Earlier this month, Impax Laboratories Inc. and Dr. Reddy’s Laboratories Ltd. both announced deals to buy generic products from the two companies. Antitrust regulators are requiring the divestitures as a condition of approving the Teva-Allergan deal.

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