Mayne Pharma Group has pulled in $634 million from institutions in an equity capital raising to pay for the acquisition of a range of generic drugs approved for the US market.
A short time ago, the shares were up more than 28% to $1.91.
The company on Tuesday announced a $888 million equity raising to fund the acquisition of a portfolio of 42 generic drugs from Teva Pharmaceutical Industries Limited and Allergan plc.
The $US652 million ($876 million) deal is expected to push Mayne Pharma into the top 25 retail generic pharmaceutical companies and the top 2 generic oral contraceptives market in the US.
About $347 million was raised under the institutional entitlement offer at $1.28 per share with a 99.9% take-up. The subsequent book build raised $287 million at $1.50 a share.
The generic drug manufacturer is now going ahead with the offer to retail shareholders.
“This acquisition is another significant step forward in the execution of our strategy to strengthen and grow our business in the world’s largest pharmaceutical market,” says CEO Scott Richards.
“This highly attractive and complementary on-market portfolio of products is expected to provide a stable base of revenue and earnings with growth to come from a combination of the launch of pipeline products and the extraction of revenue and cost synergies over time.”