Mayne Pharma Group Limited (ASX: MYX) – New acquisition and agreement

The generic Efudex’ (fluorouracil cream 5%) acquisition from Spear Pharmaceuticals, Inc., comprising of US$16.0 million in cash and US$4.0 million in Mayne Pharma equity for the total of US$20.0 million, plus contingent payments of up to US$10.0 million, has been announced by Mayne Pharma on July 23, 2018.

Contingent upon competitive dynamics in the product market, over the next three years, the deferred payments, are ensuring supply chain continuity, and the transaction also comprises a long-term supply agreement with the current US-based manufacturer. In the first quarter of calendar 2018, Spear’s generic Efudex net sales were US$3.0 million.

Under the employee option exercise, no new shares have been issued, instead, forfeited employee loan scheme shares of 340,000 were utilized. Solium, the Company’s new employee plans administration provider, became trustee of the Mayne Pharma Group Limited Employee Share Trust, on July 1, 2018. Under the Company’s Employee Share Plan, the Mayne Pharma Employee Share Trust will now be able to house forfeited loan scheme shares which may be used to satisfy option exercises by Mayne Pharma employees.

Mayne Pharma Group Limited (ASX: MYX) traded at a market price of $0.887 with a daily price change of $0.022 and a percentage change of +2.543% as at July 23, 2018, before market close.


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