Australia's Mayne in transaction talks

SYDNEY - Australian cancer drugs maker Mayne Pharma said today it was in discussions on a potential transaction and trading in its shares was halted.

Management expect the trading halt to last until Thursday, a company spokesman said. He would not say whether bankers had been appointed or whether the transaction was in Australia or offshore.

"The company is currently in discussion in relation to a potential transaction which, if those discussions are successfully concluded, is likely to have a material effect on the price at which the company's securities trade," Mayne said in a statement to the Australian Stock Exchange.

Shares in Mayne, spun out of Mayne Group last November as a maker of generic injectable drugs, closed at A$3.10 ($3.55) on Monday, up 5.8 per cent on the day.

The announcement of a transaction comes amid signs of consolidation in the Australian healthcare industry.

Symbion Health, a pathology, radiology and pharmacy group that remained after Mayne Group spun off its cancer drugs arm, has proposed to buy the pathology business of medical centres group Primary Health Care.

Australia's top private radiology operator, DCA Group, said earlier this month it had received highly conditional takeover proposals.

Mayne's new chief executive, Thierry Soursac, said last week the company was working on a "number of deals ... ranging from co-promotional deals to larger acquisitions of rights of a product or even entire businesses."

Mayne has also said it is investigating a listing on the London Stock Exchange.

The company reported earnings before interest and tax (EBIT) of A$119.0 million excluding one-offs for the year to June 30, up 37.4 per cent but at the lower end of its own forecast for A$118-121 million.

Mayne's annual sales rose 18 per cent to A$802.8 million, aided by growth in European sales of its breast cancer drug paclitaxel and two other drugs that sold well in Canada.

The company reported an annual net loss of A$31.3 million after taking A$123.6 million in pre-tax writedowns.

- REUTERS