Mayne Pharma has completed the acquisition of generic Efudex (fluorouracil cream 5%) from Spear Pharmaceuticals, Inc. for $20.0 million plus contingent payments based on competitive dynamics of as much as $10.0 million. The transaction also includes a long-term supply agreement with the current US-based manufacturer, ensuring supply chain continuity.  Mayne Pharma will begin supply to customers immediately. 

Generic Efudex is an antineoplastic topical cream indicated for the treatment of multiple actinic or solar keratoses, and for the treatment of superficial basal cell carcinomas when conventional methods of treatment are impractical.
 
Mayne Pharma’s chief executive officer, Scott Richards said “We are pleased to add generic Efudex to our product portfolio. Fluorouracil cream will further diversify earnings and strengthen Mayne Pharma’s position in the US dermatology market. Generic Efudex has a strong strategic fit with Mayne Pharma’s portfolio of generic and branded dermatology products and will be supported by our existing dermatology commercial capability across sales and marketing, customer service and medical affairs. Importantly, the acquisition is expected to be immediately EPS accretive with modest incremental EBITDA in FY19.” 
 
“We believe the acquisition is favourably structured by way of an upfront payment comprising cash and a scrip component and three potential deferred payments contingent on competitive market dynamics over the next three years. Mayne Pharma is committed to pursuing accretive transactions, such as this one, to deliver further value to its shareholders, particularly where we can leverage our existing commercial operations and know-how.”