Mayne Pharma Group's (ASX:MYX) wholly-owned specialty pharmacy, Adelaide Apothecary, will relocate and expand its fulfillment operations to a new facility in Lexington, Kentucky, according to a Monday Australian bourse filing.

The new facility represents around four times the area of its current premises, designed to support the next phase of growth for the Mayne Pharma's unit, DistributeRx, which launched operations in March.

The company expects the new leased facility to require around $200,000 in initial manufacturing equipment with up to a $2 million in total investment to complete first phase of the expansion, per the filing. Additional capital expenditures on the second phase of the expansion relating to automated conveyance and fulfillment

infrastructure is expected to be up to $2 million.

The expansion will increase the annual capacity over the two planned phases to over 2.5 million prescriptions per year, the filing said.

The company's shares were down 2% in recent Monday trade.