Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Mayne Group — Merger or Acquisition (April 2004)
12 slides from Mayne Pharma's merger presentation, Apr 27, 2004
Slide 1: Cover letter to Australian Stock Exchange
27 April 2004 Mayne Group Limited Company Announcements Office ABN 56 004 073 410 Australian Stock Exchange Level 4 Level 21 390 St Kilda Road 20 Bridge Street Melbourne Vic 3004 Sydney NSW 2000 Phone 61 3 9868 0767 Fax 61 3 9868 0757 Dear Sir Attached please find the slides which will form the basi
Slide 2: Completion of the acquisition of injectable multivitamin suite from aaiPharma
Mayne Group Limited Completion of the acquisition of injectable multivitamin suite of products from aaiPharma 27 April 2004
Slide 3: Completion details
Completion details • Mayne has completed the acquisition of the injectable multivitamin suite of products (MVI® products) from aaiPharma for $US 100 million • Payment of $US 89.1 million made • $US 10.9 million held back to set off against chargebacks and differences in expected inventory levels • $
Slide 4: Strategic rationale
Strategic rationale The acquisition is consistent with Mayne’s global strategy to focus on the research, development, manufacture and sale of injectable, speciality pharmaceuticals • Products are part of Mayne’s growth strategy for overseas markets and consistent with increasing focus on specialty p
Slide 5: Financial rationale
Financial rationale • 35-40% manufacturing cost savings beginning in FY06 through in- house manufacturing at Aguadilla, Puerto Rico facility – Full year impact of manufacturing synergies in FY07 • Expected EBITA earnings of $US 11 million in 2005 growing to $US 15 million in 2006 with further growth
Slide 6: MVI market share growing
MVI® market share growing aaiPharma’s Share of the US Infusion Multivitamin Hospital Sales Volumes (FY 2002-03) • In 2001 Baxter launched its Percent Infuvite Paediatric and Infuvite 100 Adult products. 80 Adult • In the paediatric market aaiPharma lost significant share due to the supply shortages
Slide 7: Integration progressing well
Integration progressing well • Relatively simple product integration process – “bolt-on” • Eight professional sales representatives have agreed to come across from aaiPharma and are now Mayne employees • US sales and marketing staff training started • Customer marketing and promotion program commenc
Slide 8: Tech transfer timeline – 18 to 24 months
Tech transfer timeline – 18 to 24 months MVI-13 Single dose MVI-13 Multi dose AquaSol A 2 mL MVI-13 Unit Vial Month 0-9 Month 10-13 Month 14 Month 15-24 Technical Transfer Market Completion Method Submission Dossier Prior Transfer Lot Preparation Approval 3 months Inspection Equipment Installation s
Slide 9: Protections in place
Protections in place • Double due diligence process. Mayne concluded that: – No evidence of “channel stuffing” – Reported sales reconciled to IMS sales – Chargeback data relied upon consistent with chargeback data reported by independent distributor • Always had contractual protections which reduced
Slide 10: Response to market questions
Response to market questions Issue Management Response Mature, low growth • New formulations will support sales growth products • Can sell to new geographic regions through Mayne’s existing reach • Steady growth will enhance stability of divisional earnings Does not fit with • Products acquired are
Slide 11: Response to market concerns
Response to market concerns Concern Management Comment Achievement of • Manufacturing cost savings of 35-40% beginning in synergies FY06 • Filling machine included in price • Only minor modifications required to Aguadilla facility • Due to tech transfer and regulatory approval process, in house manu
Slide 12: Completion of the acquisition of injectable multivitamin suite from aaiPharma
Mayne Group Limited Completion of the acquisition of injectable multivitamin suite of products from aaiPharma 27 April 2004