ASX AND MEDIA RELEASE 28 July 2006MAYNE PHARMA ISSUES TRADING...

ASX AND MEDIA RELEASE 28 July 2006
MAYNE PHARMA ISSUES TRADING STATEMENT AND INCREASES PROFIT GUIDANCE FOR THE FINANCIAL YEAR TO JUNE 2006
Mayne Pharma (ASX:MYP) announces that, for the financial year to 30 June 2006, unaudited results indicate that pro forma sales increased to approximately A$800 million (2005: A$687.3 million), driven in particular by strong performances by irinotecan and paclitaxel, which continues to grow in key markets. Strong sales growth was seen in all regions.
Based on unaudited results, pro forma EBIT before significant items is expected to be ahead of previous guidance of A$108-112 million and in the range of A$118-121 million (2005: A$90.2 million). This includes the effect of an unaudited one-time charge of approximately A$4 million relating to restructuring at the manufacturing plant in Mulgrave, Australia. Trading in the final quarter was above expectations, driven by stronger than expected growth and resilient margins on paclitaxel in Europe, the strong performance of irinotecan and oxaliplatin in Canada and successful launch of mitoxantrone and relaunch of hydromorphone in the US.
Dr Thierry Soursac, Mayne Pharma’s Chief Executive Officer and Managing Director, commented “This is a very strong end to a great year. During the financial year to June 2006, Mayne Pharma not only became a standalone company, but also announced and began implementation of a new strategy, made several important product launches, hired a number of highly qualified and experienced people to its management team, and announced its first acquisition, Nipent®, as part of the new strategy.”
“During financial year 2006,” Dr Soursac continued “our operational effectiveness programme has resulted in improved delivery times and lowered cycle times, particularly at the Mulgrave manufacturing facility. In addition, the company’s vertical integration strategy to manufacture certain active pharmaceutical ingredients in-house has led to reduced manufacturing costs for certain products. Going forward, Mayne Pharma has a strong pipeline of products in development, and we are expecting further launches of a number of our key products. As a result we are heading into financial year 2007 with confidence, as we continue to implement our strategy to focus on the oncology customer’s needs.”
Mayne Pharma will present its full year end result on 11 September 2006 in Melbourne, Australia.
About Mayne Pharma
Mayne Pharma Limited is a specialty pharmaceutical company focused on developing, manufacturing and selling a comprehensive range of products to oncology customers in more than 65 countries around the world. The company seeks to augment its growth by accessing additional marketed or development-stage products either through acquisition or partnership. Mayne Pharma generated sales of more than $US 500 million in its financial year ended 30 June 2005 and is listed on the Australian Stock Exchange under the symbol 'MYP'. For more information about Mayne Pharma, please visit www.maynepharma.com.
Note:
As outlined in the Mayne Group Limited Explanatory Memorandum dated 7 October 2005, Mayne Pharma Limited, acquired, from Mayne Group Limited, FH Faulding & Co Limited including its pharmaceutical businesses based in Salisbury, Australia effective 18 November 2005. Pro forma results differ to statutory results in that they include adjustments to reflect the costs of operating as an independent company as well as the inclusion of Salisbury operations as if these operations had been included for the whole period.