Australia's Mayne Pharma has agreed to buy Metrics, a contract developer and manufacturer of niche drugs, in a deal worth up to $120 million.
Under the agreement, Mayne will put down $105 million upfront, followed by another $15 million if Metrics meets undisclosed performance goals.
Metrics, based in Greenville, NC, specializes in formulating and manufacturing complex oral drugs, including opiates and treatments with poor bioequivalence. It has a client base of more than 100 pharma companies and boasts a vertically integrated CDMO model. In the fiscal year that ended June 30, Metrics brought in sales of $51.6 million and earnings of $16.1 million.
For Mayne, the Metrics buy gives it another foothold in the U.S., and adding Metrics' contract capabilities diversifies its revenue, Mayne CEO Scott Richards said in a statement. "In addition to providing scale in the U.S. market, Metrics brings additional technical capabilities and material upside from cross-selling revenue opportunities," Richards said. "We have known Metrics' senior management team for some time, and they have a solid track record of success in the U.S. generics industry."
Metrics also has a pipeline of 11 niche generics, with two pending FDA approval, and Mayne said the prospect of adding those products to its offerings made the buyout even more attractive.
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