Adelaide pharma giant Mayne Pharma overlooked for contract after it was asked to make hand sanitiser, committee hears

A major local employer says it was asked by SA Health to develop a hand sanitiser, only to be overlooked for a contract in favour of an interstate supplier.

A major Adelaide pharmaceuticals company says it was asked by SA Health to manufacture hospital-grade hand sanitiser during the coronavirus pandemic, then left out-of-pocket when the contract was awarded to an interstate supplier.

Mayne Pharma, a large employer based at Salisbury South, was asked to make the product as the pandemic ramped up in March last year, president of international operations Stefan Cross told parliament’s Economic and Finance Committee.

He said the company was then asked by SA Health to submit its product for approval by the Therapeutic Goods Administration (TGA) so that it could be used in the state’s hospitals.

But, by the time that approval had been granted in December, the contract had been awarded to an interstate supplier.

“We are essentially left here with a product that we have manufactured, that was built and designed around the request of SA Health,” Mr Cross said.

Salisbury South-based pharmaceuticals company Mayne Pharma says it was overlooked for a hand sanitiser contract. Picture: NCA NewsWire/Jenny Evans

“I did it on a goodwill, good faith basis.

“Unfortunately, we are now stuck with a product and an approval that doesn’t have a home under the tendering arrangements.

“We now have a product sitting in a container that was designed to be sold to SA Health.”

Mr Cross said it cost the company about $60,000 to develop the product.

“I didn’t expect it to be guaranteed, but I certainly didn’t expect the surprise that, in the middle of that (period), it was actually recontracted,” he said.

“That conversation never actually happened throughout the period of 2020, when we had ongoing discussions about the product and its availability.”

The committee also heard that medical manufacturing workers employed by Mayne Pharma were not considered essential workers, which led to delays in maintaining equipment while borders were closed last year.

“Despite these life-saving drugs we make, our industry has never been recognised as an essential sector,” Mr Cross said.

Mayne Pharma produces a range of products, including branded and generic drugs such as aspirin.

SA Health denied it had requested Mayne Pharma to manufacture sanitiser for it.

“As a result of an open market approach in 2019, we already had a panel arrangement in place to procure hand sanitiser from several suppliers,” it said in a statement.

“During the very early stages of COVID-19, when it was unknown what the full impact of the pandemic would have on South Australia, we had discussions with a number of additional suppliers including local suppliers to potentially increase the volume of supply of hand sinister if and when it was needed.

“Any company may seek to be added to the panel for hand sanitisers when the panel is due for review and refresh in 2022.”