Pharmacy Daily | Mayne predicts a drop

MAYNE Pharma Group expects a year-on-year drop in its gross earnings to between $8m-$10m for the year ended 30 June 2011. The company blamed the result on the impact of repositioning of its Doryx portfolio in preparation for the introduction of new dosage forms, which saw Mayne’s Doryx sales down 47% year-on-year. This drop has been attributed to delays in getting US Food and Drug Administration approval for new dosage forms, as well as a run down of product inventories in the US in preparation for the new dosage launches. Mayne also said that the strength of the Australian dollar contributed to the result, with “unfavourable exchange rate movements” reducing earnings by around $3m. “The average $US dollar exchange rate settled has increased by approximately 14% compared to the prior period,” a Mayne statement said. Meanwhile the company also said that its US$10m loan facility to Hospira for the acquisition of Mayne Pharma International in November 2009 has been reduced to US$2.5m. The company expects to have the remaining loan amount paid down completely during the remainder of 2011, making the company debt free.

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