Incoming Mayne Pharma CEO sees growth through acquisitions

The incoming chief of Mayne Pharma, the global injectable drugs business soon to emerge from the break-up of Mayne Group (ASX:MAY), said growth would have to come from acquisitions and expansion into new areas.

CEO-elect Thierry Soursac said he would look to use Mayne's expertise in cancer drugs to expand into specialty drugs that major drug companies no longer have the capacity to promote, and would consider expanding in biogenerics.

"The generic pipeline is subject to the number of molecules coming out of patent and Mayne has a few good years in front of it," Soursac said in an open briefing released to the Australian Stock Exchange. "But the next wave of patent expiries may not be as rich for generics companies as those in the past, in part due to higher levels of competition."

He expected Mayne would look to buy other generic drug companies as mergers and takeovers continue into the industry following Teva Pharmaceutical Industries' $7.4 billion takeover of Ivax. "I can tell you that Mayne Pharma will not be a passive player in industry consolidation."

He said Mayne Pharma would be in a good position to license specialty drugs from big drug companies which it would be able to market with its own generic cancer drugs for a small additional cost to what it is spending to promote its own products.

Frenchman Soursac, a medical doctor with a doctorate in pharmacology and an MBA, previously headed the biotech research and commercial operations at Rhone Poulenc Rorer and Aventis, now Sanofi-Aventis. He said he was keen to explore how Mayne could build on its first steps into biogenerics.

Creating a strong legal team that can handle complex patent fights would be a priority to ensure Mayne would stay ahead of its competitors in getting its generic drugs to market.

"There will be a lot of battles to be first to market with the molecules coming out of patent, and as a result, I believe litigation expertise will be key," Soursac said.

Mayne shareholders are expected to approve on November 16 plans to split the group into two listed companies, Mayne Pharma in generic injectable drugs and Symbion Health, in local radiology, pathology, pharmacy distribution and consumer products.