Mayne may sell Puerto Rico plant

Australia's Mayne Pharma faces a possible write-down of up to A$75.0 million ($54.9 million) this financial year, after announcing it may sell its Puerto Rican manufacturing plant. Mayne Pharma was part of the former Mayne Group, but became a separated entity last December (Marketletters passim). It is approaching the end of a comprehensive review which is expected to transform it into a medium-sized global oncology pharmaceutical company.

In an interview, Mayne chief executive Thierry Soursac said: "a significant component of our initial review has been an evaluation of the company's manufacturing capabilities and future needs, particularly in relation to our important cytotoxic oncology medicines. Currently nearly 75% of the company's earnings come from its oncology business. The Puerto Rican facility is the first asset that has been identified by management as non-core." The announcement comes amid persistent speculation that the company is a take-over target, according to the Marketletter's local correspondent.