Lake Forest, Hospira will acquire Australian pharmaceuticals company, Mayne Pharma for $2 billion to hold world generic injectable-drug market.
Lake Forest, Hospira reached a deal to buy Mayne Pharma - Australian pharmaceuticals company - for $2 billion. Transaction represents a 32% premium over Mayne Pharma's, September 18, 2006, closing price. The contract is subject to regulatory, Mayne shareholder and court approval but is expected to final before year-end. If all necessary approvals are secured, the transaction is likely to be done by the end of 2006.
Hospira official said that the deal would strengthen its hold in world generic injectable-drug market. Mayne does business in 65 countries and had sales of about 600 million US dollars in fiscal year 2006, which ended on June 30. Hospira turned off from Abbott Laboratories in the year 2004 and had sales of US $2.6 billion in 2005.
Hospira's acquisition with Mayne Pharma possibly will have implications for the global injectables market. Acquisition aims to cut the general costs of healthcare and most importantly improve the feasibility of care for patients. Mayne Pharma's large presence in Canada, Australia and Europe strengthens Hospira's worldwide reach.
The acquisition will also provide the company with potent or cytoxic manufacturing & research potential.
According to the chairman of Mayne Pharma, in recent years Mayne has grown-up rapidly and company believes that it will maintain the growth under the tenure of Hospira. Mayne Pharma believes that Hospira will offer access to better resources, particularly in the US market.
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