Mayne Pharma (ASX:MYX) has announced the acquisition of Generic Efudex cream from Spear Pharmaceuticals for $20 million plus $10 million in contingent payments.
The deferred payments are contingent upon competitive dynamics in the product market over the next three years.
The deal also includes a long-term supply agreement with the current US-based manufacturer, which will ensure supply chain continuity.
The cream is a topical treatment for multiple actinic or solar keratoses, a condition which affects around 60 million Americans.
The company says the acquisition will further diversify earnings and strengthen Mayne Pharma’s position in the US dermatology market.
Shares in Mayne Pharma (ASX:MYX) are trading 4.62 per cent higher at $0.91.