Mayne Pharma (ASX:MYX) share price falls on results update

The Mayne Pharma share price is trading lower today after the company reported a 9% fall in revenue for the first 4 months of FY21.
The post Mayne Pharma (ASX:MYX) share price falls on results update appeared first on Motley Fool Australia. –

falling asx share price represented by woman making sad face

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 2.82% to 34 cents in early trading today, after the company reported a 9% drop in revenue for the first four months of FY21.

Mayne Pharma is a pharmaceutical company that commercialises branded and generic drugs. The business provides contract development and manufacturing services to more than 100 clients worldwide. It earns 90% of its revenue from the US.

What did Mayne Pharma report today?

Mayne Pharma advised that its revenue declined by 9% to $140 million for the four months up to October. The company said this was due to a weakening USD foreign exchange rate which depreciated 3 cents to US$ 71.5 cents, as well as a softer generic result.

Generics products division revenue was US$55 million in the first four months of FY21, down 10%. This was due to weaker performance in methylphenidate, amiodarone and butalbital.

Profit margin has remained consistent year on year at 47%, and operating expenses have fallen by 20% or $10 million, benefiting from the restructure undertaken in FY20, and continued cost containment.

Restructuring and strategy

Mayne Pharma says it has worked extensively on minimising its cost base by $16 million in 2020. A significant part of these savings have been in its dermatology business, where restructuring of the sales team has driven a more profitable operating model.

In addition, research and development (R&D) spend decreased by $15m. The company says while it continued to invest in R&D and business development activities, it has refocused from the more volatile retail generic segment to more sustainable areas in women’s health, dermatology and infectious disease.

What did the company report for FY20?

Back in August, Mayne Pharma announced its full year results for FY20. The company reported a net loss of $93 million driven mainly by asset impairments. This result was achieved on the back of a full year revenue of $457 million, which was down 13% from the prior year.

In October,  the company suffered a setback when the US Food and Drugs Administration (FDA) raised questions in relation to the company’s generic version of the drug Nuvaring. The share price fell by 16% on the news that day.

About the Mayne Pharma share price in 2020

The Mayne Pharma share price has fallen by almost 20% this year. It started the year at 43 cents, and is now trading at 34 cents. The company commands a market cap of $587 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 June 30th

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Mayne Pharma (ASX:MYX) share price falls on results update appeared first on 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!