Mayne Pharma soars on news of oral contraceptive license deal

2 October 2019

Shares of Australian drugmaker Mayne Pharma (ASX: MYX) leapt 19% to A$0.63, and to a near five-month high, after the company announced an exclusive long-term deal to sell a new contraceptive drug in the USA.

Mayne has signed a 20‑year exclusive supply and license agreement with Belgium’s Mithra Pharmaceuticals (Euronext Brussels: MITRA) to commercialize its novel oral contraceptive Estelle, comprising estetrol (E4), and drospirenone, (E4/DRSP), in the USA.

Under the terms of the agreement, Mayne will pay up to $295 million (all US $) comprising $8.75 million in cash and 4.95% of Mayne’s ordinary shares at closing. The company will also pay $11 million in cash and a further 4.65% of Mayne Pharma’s ordinary shares following FDA approval, plus contingent payments based on reaching cumulative net sales targets.

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK