Mayne Pharma has purchased 37 approved and 5 FDA filed products from Teva and Allergan for $652 million.

The deal transforms the scope and breadth of Mayne Pharma’s U.S. generics division and is expected to propel the company into the top 25 retail generic pharmaceutical companies and the top 2 in the generic oral contraceptives market in the U.S.

The acquisition increases and diversifies Mayne Pharma’s earnings across more products, therapeutic areas, dosage forms and complex technologies, and builds upon its expertise in modified-release, potent compounds and controlled substances.

The acquired portfolio aligns with Mayne Pharma’s core competency in complex pharmaceutical formulations and includes difficult-to-manufacture, modified-release tablets and capsules, soft-gel capsules and transdermal patches.

The divestiture by Teva was mandated by the Federal Trade Commission (FTC) in connection with Teva’s proposed acquisition of Allergan’s generic drug business. Completion of Mayne Pharma’s acquisition is expected to be concurrent with the closing of Teva’s acquisition and is subject to the FTC approving that transaction and Mayne Pharma’s acquisition of the portfolio.

“The acquisition transforms Mayne Pharma’s generic products division into a top 25 player in the U.S. retail generics market, diversifying Mayne Pharma’s earnings across a broad range of products, therapeutic areas and technologies,” said Scott Richards, chief executive officer, Mayne Pharma. “This attractive Portfolio spans multiple dosage forms and complements our expertise in higher-value niche, differentiated products. The on-market products have strong shares in stable, mature markets, while the pipeline products are expected to deliver additional growth in attractive markets as they are launched over the next couple of years.”

The expanded supply chain network of active pharmaceutical ingredient providers and contract manufacturing organizations (CMOs) also is expected to unlock new portfolio and pipeline opportunities, according to the company.

Up to eleven of the acquired products will be transferred into Mayne Pharma’s commercial manufacturing facilities in Greenville, NC, and Salisbury, South Australia. This will accelerate the use of existing and previously announced expansions to manufacturing capacity, and enable additional margin to be captured over time, improving overhead recovery and the return on recent capital invested to expand these facilities.