Mayne swoops again

Generic drug manufacturer Mayne Pharma announced its second buy and capital raising in as many months. Mayne plans to raise $18 million to buy a pain relief product from global drug giant GlaxoSmithKline. The raising is priced at 29.5¢ a share, an 8 per cent discount to its last traded price. In addition to the $18 million equity placement to institutional investors and sophisticated investors, Mayne will offer a share purchase placement for up to $5 million. The $120 million purchase of private US pharmaceutical Metrics Inc will comprise $65 million of equity and $48 million debt. Madeleine Heffernan

By InvestSMART · 15 Dec 2012

By InvestSMART ·
15 Dec 2012

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Frequently Asked Questions about this Article…

What recent capital raising did Mayne Pharma announce?

Mayne Pharma announced an $18 million equity raising priced at 29.5 cents a share. The company said this capital raise is part of a transaction to acquire a pain relief product from GlaxoSmithKline.

Why is Mayne Pharma raising $18 million?

According to the announcement, the $18 million equity placement is being raised specifically to buy a pain relief product from global drug company GlaxoSmithKline.

How is the $18 million placement being priced and how does that compare to the market?

The placement is priced at 29.5 cents per share, which the company said is an 8 per cent discount to Mayne Pharma’s last traded share price.

Who can participate in Mayne Pharma’s $18 million equity placement and the additional offer?

The $18 million equity placement is being offered to institutional investors and sophisticated investors. In addition, Mayne is offering a share purchase placement of up to $5 million.

What is the GlaxoSmithKline deal mentioned in the announcement?

Mayne said the funds raised will be used to buy a pain relief product from global drug giant GlaxoSmithKline.

Is this the only recent acquisition and capital raise for Mayne Pharma?

No. The company described this as its second buy and capital raising in as many months, indicating recent repeated acquisition and funding activity.

What are the details of Mayne’s purchase of Metrics Inc mentioned in the article?

The article states Mayne is planning a $120 million purchase of private US pharmaceutical Metrics Inc. That purchase was described as comprising $65 million of equity and $48 million of debt.

How much money is Mayne offering outside the $18 million placement?

In addition to the $18 million placement to institutional and sophisticated investors, Mayne will offer a share purchase placement for up to $5 million.