Mayne eases the pain with a $25m suit against Pan

Healthcare giant Mayne has filed a Victorian Supreme Court claim against troubled manufacturer Pan Pharmaceuticals, following an estimated $AUD25 million-plus loss of revenue and recall costs.

Pan, which was served with a TGA notice halting production in March, was subcontracted to produce a high proportion of Mayne products including the Cenovis, Bio Organics and Golden Glow vitamins, herb and minerals supplement ranges.

Mayne said it has accounted for most Pan-manufactured products, and could now assess the financial effect on the business. However, Mayne spokesperson Rob Tassie said they had still to arrive at a final sum.

"We don't have an overall figure as yet. That has still to be quantified and depends on a number of things," he commented.

Tassie said that although Mayne would be bound by the normal course of events in the justice system, the company was "champing at the bit" to get the matter dealt with as soon as possible.

He added that as yet there were no other actions involved, only Pan. "We are pursuing this action against Pan only, there is nobody else," he said.

Mayne claimed its losses comprised an estimated $20 million for recalled stock; costs associated with legal, logistics and media of approximately $5 million, and unnamed costs to regain market confidence since the Pan meltdown.

Mayne claimed the health supplement category was expected to take months to fully recover from the recall, and its consumer division would be severely impacted by the recall, with ongoing effects into next financial year.