At time of writing the share price of Mayne Pharma Group Limited [ASX:MYX] is down 6.25%, trading at 75 cents.
It has been an up and down 12-month period for the stock:
The latest news out of the company is its 1HFY19 results, which reveal improved revenue and profits, but it seems investors wanted more.
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Mayne Pharma share price down on results, growth underpinned by specialty brands
Some highlights from the results presentation:
- Revenue up 13%
- Gross profit up 67%
- EBITDA up 184%
- Underlying EBITDA up 16%
- NPAT up 35%
Its Generic Products Division saw gross profit grow 58%, while its Specialty Brands Division which includes FABIOR®, SORILUX® and the DORYX® franchise, saw a 213% increase in sales and 227% rise in gross profit.
FABIOR® and DORYX® are acne treatments, while FABIOR® is a psoriasis treatment.
The company operates two drug development and manufacturing facilities, one in Australia and one in North Carolina.
What does the future hold for Mayne Pharma?
As the company notes,
‘Like many of our competitors, the performance of Generic Products will be more variable period to period depending on the timing of new product launches, cost savings from the transfer of products into Greenville, Salisbury or third party manufacturers, any competitor launches or withdrawals on key products and portfolio optimisation. The Company is currently facing emerging near-term competitive pressures on some key products as well as potential opportunities from market supply disruptions.’
In essence, the pharmaceutical business is a tough caper, and frequently the bigger players (particularly in the US) can put the squeeze on relatively small players like Mayne Pharma.
That being said, the growth in sales of its Specialty Brands will be pleasing news for some investors.
My overall sentiment on Mayne Pharma is lukewarm/negative. I am more bullish on gold, for instance.
For Money Morning