Mayne Pharma’s profits surged driven by acquisitions and higher sales.
Net profit in the six months ended December 31 rose to $72.7 million from $19.2 million a year earlier, the Australian drug maker, which bought a portfolio of 42 generic drugs from Teva Pharmaceutical Industries Limited and Allergan plc last year, said.
“The Teva product acquisition which was completed in August contributed significantly to growth with sales and margins performing ahead of guidance,” CEO Scott Richards said.
Mayne Pharma is developing 50 new products, including 40 focused on the US markets, saying its product development pipeline targets markets with sales greater than $US6 billion ($7.8 billion). It has 19 drugs awaiting the US Food and Drug Administration approval, it said.
This chart from Mayne’s earnings presentation shows its R&D efforts
In the first half, Mayne invested $15.6 million on research and development, with 80% of the spend directed towards generic drugs. It is working on sales and marketing plans for traconazole, which is used to cure certain fungal attacks and potentially to treat cancer, it said.
The generics unit will benefit in the second half from the full six months contribution from the Teva drugs acquisition and the recent launch of five products.
The acquired Teva products include oral contraceptives, cardiovascular products and therapeutics for the central nervous system. The acquisition was expected to add more than $US237 million to Mayne Pharma’s sales in fiscal 2017.
The sale of the drugs to Mayne by Teva and Allergan has been ordered by US trade regulators in connection with Teva’s proposed $US40.5 billion acquisition of Allergan’s generic drugs business.