Mayne Pharma set to be sold in $2 billion deal

Australian pharmaceutical company Mayne Pharma is set to be acquired by Hospira, the former hospital products business of Abbott Laboratories, in a $2 billion (one billion pounds) deal.

The takeover includes a 32 per cent premium over Mayne’s current share value and was driven by a “compelling strategic rationale”, according to Hospira.

The company said it intends to establish itself as the worldwide leader in the generic injectable pharmaceuticals business, aided by Mayne’s considerable presence in the European, Canadian and Australian markets.

Additionally, Hospira spoke of its hope to expand its portfolio of oncology products, which comprises approximately half of Mayne’s range of drugs.

Peter Willcox, chairman of Mayne Pharma, remarked: “Mayne has grown rapidly over recent years and we believe will continue to grow under the ownership of Hospira, which will provide access to greater resources, particularly in the important US market.”

He added that the two companies had a similar heritage that would “encourage” the development of the business for customers and employees.

Yesterday, Mayne announced it had received UK marketing approval for generic oxaliplatin, after the High Court found that the existing patents, held by Sanofi-Aventis for the trademark Eloxatin, could be overturned.

The drug is used in the treatment of stage III and metastatic colorectal cancer.