Mayne shares jump 35pc after Hospira bid

MELBOURNE - US drug maker Hospira offered A$2.6 billion ($3 billion) for Australian generic cancer drugs group Mayne Pharma to become the top global provider of injectable drugs to hospitals.

In the latest deal in a fast consolidating generic drugs industry, Illinois-based Hospira offered Mayne shareholders A$4.10 cash for each of their shares, a 32 per cent premium to Mayne's last closing price on Monday.

Mayne shares jumped 35 per cent to A$4.18, 2 per cent above the offer price, after coming off a two-day trading halt.

Analysts said a bidding war was unlikely at this price.

The generic drug-making world is dominated by Israel's Teva Pharmaceutical Industries and Swiss group Novartis, where companies are looking to build strong pipelines of drugs to offset intense price pressure.

"It's a good price, a very good price," said David Wong, head of equities for IAG Asset Management.

- REUTERS