Mayne Pharma Group Limited
(ASX:MYX) have announced a new acquisition and a capital raising .
The drug developer has entered an agreement to buy the Doryx brand from Actavis for around $64 million. The deal is expected to complete by the end of this month ahead of a two month transition period for the transfer of the business to Mayne Pharma.
Doryx is a proven acne medication which has produced net revenues of $76 million in the 12 months to December and is expected to be immediately accretive.
Mayne has also expanded it US Speciality Brands division appointing three key staff already familiar with the Doryx brand.
Other smaller agreements to purchase ADD treatments have also been made.
The deals will be funded by a fully underwritten $115 million equity raising with the company to remain in a trading halt until Wednesday.
Mayne Pharma Group Limited
(ASX:MYX) reported a net profit of $21.3 million for the 2014 financial year.
