Mayne Pharma Group Ltd (ASX: MYX) reported half-year earnings this morning for the period ended 31st December 2018.
Mayne Pharma is an Australian specialist pharmaceutical company, creating commercialised and generic products you’ll find in pharmacies across Australia. Mayne Pharma’s history started in South Australia, but today it develops most of its drugs in Australia and the USA.
The 5 Key Points
- Revenue increased by 13% to $274.4 million
- Reported EBITDA increased by 184% to $65.4 million (Video: What is EBITDA?)
- Reported net profit (NPAT) of $2.6 million, which follows a loss in the prior corresponding period
- Net operating cash flow increased 11% to $53.5 million
- Received US Food and Drug Administration (FDA) approval for TOLSURA, an antifungal capsule
Analyst Targets
Bloomberg estimates for NPAT were $26.7 million Mayne Pharma failed to reached the targets with their underlying NPAT of $21.1 million and reported NPAT of $2.6 million.
Management Commentary
Mayne Pharma’s Chief Executive Officer, Mr Scott Richards, noted, “Specialty Brands tripled sales and gross profit with FABIOR, SORILUX and DORYX all contributing to growth versus pcp, and Generic Products reported much stronger gross profit despite the entrance of a number of new competitors into the dofetilide market.”
On some of the highlights of the first half, he noted, “The first half saw the completion of many strategic investments such as the acquisition of two dermatology products… We also invested in a new hospital-based field team to promote TOLSURA which was approved by the FDA during the period, and lastly we took control of the SUBA-itraconazole BCCNS program from HedgePath Pharmaceuticals, Inc.”
Outlook
Mayne Pharma continues to focus on the US pharmaceutical market as it is by far the largest market, making up 44% of global sales. One strategy the company plans to use is vertical integration, stating that the company, “remains focused on participating in other parts of the value chain and finding more efficient and cost-effective ways of getting products to patients.”
Mayne Pharma also expects to see increased growth from the launch of their two new brands, LEXETTE and TOLSURA. For more insight into the valuation of Mayne Pharma, check out this Rask Media article.
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Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.
