Mayne acquires Metrics
October 5, 2012
MAYNE Pharma has entered into
an agreement to purchase Metrics,
an American based provider of
contract development services to
the pharma industry that also
develops and manufactures niche
generic pharmaceuticals.
The deal will set Mayne Pharma
back US$105m plus up to US$15m
in earn-out payments based on
FY13 performance.
The acquisition will be funded by
US$44.5m of acquisition debt
funding and the proceeds of a
A$65m equity raising.
According to Mayne, Metrics has
particular expertise in formulating
complex oral drug products,
including highly potent and
unstable compounds, controlled
substances (such as opiates) and
products with poor bioequivalence.
The drugs developed by Metrics
are sold in the US either by the
company’s distribution partners or
directly through its own wholesale
distributor, Midlothian
Laboratories.
Currently, in addition to its
existing products, Metrics has a
pipeline of 11 niche generic drugs
in various stages of development.
Metrics has sales and pre-tax
earnings of US$51.6m and
US$16.1m respectively for the 12
months ended 30 June 2012.
“Metrics is highly complementary
to Mayne Pharma’s existing
business in term of its products,
services and the markets in which it
operates,” said Mayne Pharma CEO,
Scott Richards.
In addition to providing scale in
the US market, Metrics brings
additional technical capabilities and
material upside from cross-selling
revenue opportunities,” he
added.
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