Winners and Losers: Surge for SA drugs maker after sale announcement
News of a pharmaceutical company’s decision to exit Adelaide saw a surge in trades late in the week.
Shares in Mayne Pharma shot up 13.65 per cent in just one day after the company announced on Friday morning it was selling its Adelaide arm.
The SA-based business told shareholders on Friday that it had found a buyer for its Australian section, which includes its Salisbury North-based drugs factory.
A Perth-based suitor is behind the $55.5 million bid, which was accepted by the board and described by CEO Aaron Gray as a “defining step in Mayne Pharma’s transformation”.
Patient shareholders, previously burned by a messy and failed attempt to sell the entire business to US-based Cosette, seemed to welcome the news.
Shares rallied through to the close of trade on Friday afternoon and for the week ended up by 21.26 per cent to $3.08 per share. This implies a market capitalisation of $252.2 million.
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It put Mayne firmly in the Winners list for the week, alongside Vintage Energy, which enjoyed a 50 per cent rise in its low share price ($0.001 per share).
Other microcaps H3 Energy and Altitude Minerals also enjoyed gains but remain some of the least valuable of the state’s listed companies at $5.4 million and $2.4 million respectively.
The full list of Winners and Losers for the week ending November 6:
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