TherapeuticsMD Announces Definitive Agreements to License its Products to Mayne Pharma

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TherapeuticsMD, Inc., a women’s healthcare company, announced that it has entered into definitive agreements to license its products to an affiliate of Mayne Pharma Group Limited, an ASX-listed specialty pharmaceutical company focused on commercializing novel and generic pharmaceuticals, for commercialization in the United States. In addition, TherapeuticsMD has agreed to sell certain assets to Mayne Pharma to allow Mayne Pharma to commercialize the products.

At closing of the transaction, 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, subject to customary adjustments, for acquired net working capital. In addition, the company will receive a 20-year royalty stream tied to Mayne Pharma’s net sales of the products.

The upfront payment to be made by Mayne Pharma, along with cash on hand, will allow TherapeuticsMD to repay its outstanding indebtedness with Sixth Street Partners and to redeem its outstanding preferred equity, with TherapeuticsMD continuing as a pharmaceutical royalty company with the potential to create value for stakeholders over time from the resulting net cash flows.


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