Mayne Pharma’s Hospira merger recommended by expert

Hospira’s attempt to acquire Australian company Mayne Pharma has received a further boost today following the publication of a report that recommends the merger.

The A$2.6 billion (1.05 billion pounds) offer was already given a recommended status last month by Mayne’s board and the new report from independent expert Grant Samuel & Associates agrees that the offer represents good value for shareholders.

If accepted, Hospira claims the newly-merged company would establish itself as the worldwide leader in the generic injectables market.

The report from Grant Samuel states that the current offer, which values Mayne at between A$3.73 and A$4.19 per share accurately reflects the company’s prospects.

“In Grant Samuel’s view, Mayne Pharma shareholders would clearly be better off voting in favour of the scheme (in the absence of a superior alternative offer),” the report reads.

Peter Willcox, Mayne Pharma’s chairman, said that Mayne had grown “rapidly” over the years and should continue to grow under ownership of Hospira.

He commented: “[The merger] will provide access to greater resources, particularly in the US market.”

Last month, Mayne received UK marketing approval for generic oxaliplatin following a High Court decision that the patents for the drug, held by Sanofi-Aventis for Eloxatin, could be overturned.