Women's health company TherapeuticsMD announced that it has entered into definitive agreements to license several products to an affiliate of Australia-based Mayne Pharma Group for commercialization in the U.S.
Specifically, Florida-based TherapeuticsMD will grant Mayne Pharma an exclusive license to commercialize hormone therapies, Imvexxy and Bijuva, both approved in 2018, its prescription prenatal vitamin products sold under the BocaGreenMD and vitaMedMD brands, as well as birth control ring Annovera.
In addition, TherapeuticsMD said it has agreed to sell "certain assets" to Mayne to allow the company to commercialize the products.
Per the deal, TherapeuticsMD will receive an upfront cash payment of $140 million for the license grant and sale of certain assets, plus an additional approximately $13.1 million for acquired net working capital. In addition, TherapeuticsMD will receive a 20-year royalty stream tied to Mayne Pharma’s net sales of the products.
According to the chairman of TherapeuticsMD's board, the transaction will allow the company to repay in full its debt to Sixth Street Partners and redeem preferred stock from Rubric Capital Management, while also establishing a future royalty revenue stream.
Back in May, EW Healthcare Partners agreed to acquire TherapeuticsMD for approximately $177 million but the deal fell apart just a few months later after shareholders did not get on board.
