- Mayne Pharma (MYX) is selling its long time subsidiary Metrics Contract Services for US$475 million (A$682.6 million)
- Mayne is selling the company to Catalent, a fellow healthcare company focused on pharmaceutical products, as part of its transformation strategy
- Mayne Pharma believes the sale will unlock significant value for shareholders and create a “leaner” business with financial flexibility
- The transaction is expected to be finalised by the end of this year
- Mayne Pharma shares are up 19.1 per cent to trade at 40.5 cents per share at 10:16 am AEST
Mayne Pharma (MYX) is selling Metrics Contract Services for US$475 million (A$682.6 million).
The company entered a binding agreement with Catalent to sell its company, claiming the sale is a “key driver” of Mayne’s transformation strategy and will unlock “significant value” for shareholders.
Mayne Pharma acquired Metrics in 2012 and reportedly became a “premier” global contract development and manufacturing company.
Based in North Carolina, US, Metrics Contract Services works with some of the world’s leading biotech and pharma companies by providing a range of services from drug development through to commercial manufacturing, all from its facility in Greenville.
“The board wants to recognise and thank management and all employees at Metrics for their efforts in building this exceptional business over the past ten years,” MYX Chair Frank Condella said.
“[We] believe the agreement with Catalent represents an attractive opportunity for a business which has reached maturity under Mayne Pharma’s ownership,” Mr Condella added.
Catalent President of Pharma & Consumer Health Dr Aris Gennadios said the acquisition will expand Catalent ability to meet customers’ needs and expectations.
“The experienced team and consistently improved, state-of-the-art facility in Greenville will provide Catalent’s customers with immediate, fit-for-scale capacity for in-demand highly potent drugs and other oral solid small-to-midsize batch needs,” Dr Gennadios said.
Looking ahead, Mayne Pharma plans to focus on building its women’s health and dermatology portfolios, as well as the International business which it said all have solid long term growth outlooks.
The transaction is expected to be completed by the end of the year and Mayne Pharma and Catalent will work together to ensure a smooth transition for customers and employees.
Mayne Pharma shares were up 19.1 per cent to trade at 40.5 cents per share at 10:16 am AEST.