Mayne Pharma lifts profit 400pc

Pharmaceuticals group Mayne Pharma is confident of “significant” growth ahead after a strong year.

Mayne Pharma’s Scott Richards. The company has jumped up the generic drug table rankings.

Pharmaceuticals group Mayne Pharma is confident of “significant” growth over the coming year after lifting profit nearly 400 per cent over the last 12 months.

Mayne (MYX) today posted a net profit of $37.4 million for the year through June, a fourfold increase on the prior year’s $7.8m result.

Revenue for the company surged 90 per cent to $267m.

Still, the company decided against paying a dividend.

Mayne, a company with roots in Australia that were seeded in 1845, commercialises branded and generic pharmaceuticals and provides contract development and manufacturing services to more than 100 clients worldwide.

The business now has manufacturing facilities around the world and has a global development pipeline which consists of over 50 products of which more than 35 are targeting US markets with sales greater than US$7bn.

The company spent $29m on research and development over the year and another $30m on a multi-site expansion.

Mayne chief executive Scott Richards said it had been a strong year for Mayne Pharma with the business reporting growth at both the top line and bottom line, as well as across all operating segments.

“The outlook remains very positive and the company has significant growth opportunities across multiple channels and all US business segments in the world’s largest pharmaceutical market,” the group said.

Mayne Pharma shares have nearly doubled in price over the last 12 months.

Recently Mayne announced it had purchased a list of generic drugs from Israel’s Teva Pharmaceuticals, which had to divest products to secure approval for its $40 billion acquisition of Allergan’s generic drug business.

The deal with Teva more than doubles Mayne’s top line and will see it skyrocket from 75th place on the US generic lead tables to the top 25.

Mayne will also become the second-biggest generic supplier of oral contraceptives in the US, with 21 products.