The $US652 million acquisition of a suite of generic drugs from Teva Pharmaceutical Industries has helped Mayne Pharma to a strong start to the financial year.
Mayne Pharma chief executive Scott Richards told shareholders at the company's annual general meeting on Tuesday that group revenue to the end of October had more than doubled to $172 million compared to a year ago.
"In summary, our business has had a strong start to the financial year," Mr Richards said.
He said the group's Generic Products, Contract Services and Mayne Pharma International businesses had generated strong growth.
In the Generic Products division, year-to-date sales were up 352 per cent to $US97 million - 330 per cent in Australian dollars - driven by the drugs acquired from Teva and strong growth in the existing business.
Sales from the Teva drugs totalled $US55 million over the 59 tradings days since the deal closed on August 4 to the end of October.
Mayne said the monthly sales of the portfolio of drugs acquired from Teva had been volatile, but sales and margins had been in line with expectations.
Mayne expects monthly revenue and earnings from the Teva portfolio to grow over the remainder of the financial year as it pursues new accounts and generates sales from the recent launch of budesonide capsules to treat inflammatory bowel disease.
The biggest-selling drug in the Generic Products division was dofetilide, a drug to treat irregular heartbeats.
Mr Richards said Mayne was excited by the potential of a drug being developed by HedgePath Pharmaceuticals - SUBA-Itraconazole - to treat a genetic form of skin cancer known as Gorlins Syndrome.
Mayne holds a stake of 55 per cent in Hedgepath.
Presently, there are no drugs to treat Gorlins Sydndrome.
Mayne's Specialty Brands division had experienced headwinds related to a loss of some exclusivity for the Doryx acne treatment but the division was well-placed for future growth given the recent launch of a new delayed-release product, Doryx MPC, and the upcoming launches of foam products to treat acne and psoriasis.
Mayne shares were 2.5 cents lower at $1.615 at 1446 AEDT.
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