Here’s why the Mayne Pharma (ASX:MYX) share price is shooting 28% higher

The Mayne Pharma Group Ltd (ASX:MYX) share price is shooting higher on Friday after gaining FDA approval for a new contraceptive pill…
The post Here’s why the Mayne Pharma (ASX:MYX) share price is shooting 28% higher appeared first on The Motley Fool Australia. –

healthcare asx share price rise represented by happy doctor

The Mayne Pharma Group Ltd (ASX: MYX) share price is shooting higher on Friday morning.

At the time of writing, the pharmaceutical company’s shares are up a massive 28% to 59 cents.

This latest gain means the Mayne Pharma share price is now up 69% since the start of the year.

Why is the Mayne Pharma share price charging higher?

Investors have been buying the company’s shares this morning following the release of a very positive announcement.

According to the release, the US Food and Drug Administration (FDA) has approved the New Drug Application (NDA) from Mayne Pharma and Mithra Pharmaceuticals for the novel combined oral contraceptive Nextstellis.

Following this approval, Mayne Pharma anticipates the commercial launch of Nextstellis by the end of June 2021.

What is Nextstellis?

Nextstellis was developed by Mithra and is the first and only contraceptive pill containing estetrol. This is a native estrogen which is now produced from a plant source. Estetrol is also the first new estrogen introduced in the US in more than 50 years.

The release explains that almost 10 million American women use short-acting combination (estrogen and progestin) contraceptives. This led to the US market for combined hormonal contraceptives generating US$3.6 billion in sales for the 12-month period ending January 2021 according to IQVIA.

Mayne Pharma has a 20-year exclusive license and supply agreement in the US and Australia for Nextstellis. The product is still under active review at the Australian Therapeutics Goods Administration.

Positively, the University of California’s Professor and Director of Family Planning, Mitchell Creinin, spoke very positively about the product.

He said: “Nextstellis is a new innovative contraceptive that has been shown in clinical trials to be not only safe and effective but also well tolerated with a desirable bleeding profile and minimal impact on triglycerides, cholesterol and glucose, as well as weight and endocrine markers.”

Management commentary

Given that the company considers this an important milestone, it isn’t surprising to see the Mayne Pharma share price shooting higher.

The company’s CEO, Scott Richards, commented “The approval of Nextstellis represents an important milestone, providing women with a new choice for their reproductive health. We are delighted to be introducing a new estrogen and bringing to market this novel, safe and effective option for women to consider with their healthcare providers.”

“As a result of receiving FDA approval for Nextstellis, Mayne Pharma will pay Mithra US$11m in cash and issue 85.8m ordinary Mayne Pharma shares. Mithra is also entitled to a Mayne Pharma Board position. The new appointment will be subject to shareholder approval at the next Annual General Meeting in November 2021.”

Based on the current Mayne Pharma share price, those shares are worth approximately $50.6 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Mayne Pharma (ASX:MYX) share price is shooting 28% higher appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!