Pharmaust subsidiary goes into administration

Troubled pharmaceutical company PharmAust Ltd announced today that its major operating subsidiary PharmAust Manufacturing Pty Ltd has been placed in voluntary administration.

The move follows a succession of losses and boardroom disputes at the Welshpool-based company, which under former managing director Paul D'Sylva was aiming to build a suite of pharmaceutical busnesses.

The current directors, led by recently installed chairman Simon Owen, decided that selling the manufacturing business was the best option.

"It is clear from the Board's review that the parent company will need to continue to contribute over $1.5 million to PAM in order for it to approach sustainability," the company said in a statement.

"The Board believes that retaining these funds and looking to an orderly disposal of the manufacturing business maintains the greatest value for shareholders."

Martin Jones, Andrew Saker and Darren Weaver of Ferrier Hodgson have been appointed as joint and several administrators.