An insight into this pharma stock – Mayne Pharma Group Ltd (ASX: MYX)


Company Overview: Mayne Pharma Group Ltd.’s (ASX: MYX), offerings include product development, analytical development, contract manufacturing, formulation development, logistics, and others. Mayne Pharma offers products in the dosage forms of powders, liquids, tablets, capsules, and creams. Mayne Pharma Group Limited (ASX: MYX)  was trading at a market price of $0.865 at trade open on July 06, 2018; and saw a daily price change of -$0.010 or a percentage change of -1.136% on July 5, 2018.

Financial and operational performance: For 1HFY18, the company reported EBITDA of A$ 23 million and adjusted EBITDA of A$70 million. Driven by assets impairment, the company reported a net loss after tax of A$174 million, based on abnormal Doryx returns and stock obsolescence, restatement of deferred tax assets and liabilities following the US tax rate change and restructuring expenses. Operating cash flow has been positive A$48 million following the significant working capital injection in the prior corresponding period (pcp), and with decent adjusted gross profit. The group has seen a significant improvement in trading during 2Q of FY18.

Mayne Pharma.png

MYX 1HFY18 financial results in millions, Source: Company Reports

On the other hand, competitor disruptions are creating opportunities and US generic market appears to be stabilizing a bit now. Both Mayne Pharma International and Metrics contract services delivered margin growth along with solid revenue. Expanding sales reps to 120 by end of December by the specialty brand franchise is expected to drive some growth. The company continues to invest in research and development to advance and expand product pipeline and has added 2 products to US pipeline, and filed 3 products with FDA. Monurol granules have been approved and launched in Australia and favorable phase IIb study results for SUBA – Itraconazole in BCCNS have been reported.

A stronger second half driven by stabilizing generic market, the expanded dermatology sales team, new product launches, contract service committed business pipeline and cost benefits from the organizational restructure has been indicated by the group.


MYX financials for 2017, Source: Company Reports

Industry Dynamics: The research from Barclay’s shows 13% deflation year on year and an increase of 3% month-on-month in December 2017. Mayne Pharma price deflation depicted low single digits in 1H FY18 versus low double digits in 2H FY17. US generic market is expected to grow at mid-single digits CAGR to 2020 driven by aging population and increasing incidence of chronic disease, increased demand for generics to lower healthcare costs and brand loss of exclusivity of US $70 billion over the next 5 years.

Product and new facility launch: Mayne Pharma has officially announced the solid oral-dose manufacturing facility opening in the US – the 126,000 square-foot, facility, built up from the ground and custom-designed to meet or exceed the standards of major drug regulatory authorities. It also quadruples the group’s capacity to manufacture oral solid-dose pharmaceuticals in the US and introduces new capability to manufacture modified-released bead/pellet products and significant capacity to manufacture potent compounds.

Mayne Pharma launched two new products manufactured at Greenville doxycycline hyclate immediate-release capsules and completed the technology transfer of disopyramide capsules from a Teva site to Grenville.

While the stock has risen about 20% over last three months, the shortcomings in terms of financials and intense competition prevail. Thus, it would be a watch in the near to medium term.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply