Shares in pharmaceuticals provider Mayne Pharma have surged after it struck a manufacturing deal with a Chinese company to manufacture oral contraceptives for the US.
Novast Laboratories will produce 13 products, which Mayne will then market to the US.
Shares in Mayne jumped by as much as 9.15 per cent earlier, and were still up 4.27 per cent at 42 cents by 1310 AEST.
Five of the products are new and yet to be manufactured. Four of these have been approved by US authorities, while the fifth is pending.
Mayne Pharma is yet to reveal details of the new products.
The other eight products have been manufactured by Teva Pharmaceutical in Australia and the US.
Mayne gained these products in 2016 when it bought more than 40 from Allergan and Teva and stepped up its US presence.
Chief executive Scott Richards said the deal would provide more favourable terms for the production of the eight existing products.
Mayne makes some of its products at its manufacturing sites in Adelaide and the US, while contracting others.
The company provides more than 20 contraceptive products to the US.
It also globally distributed products to treat the cardiovascular and central nervous system, and attention-deficit hyperactivity disorder.
Mayne’s share price has remained largely unchanged since January, despite the economic volatility of the coronavirus pandemic.