Up-and-coming pharmaceutical company Mayne Pharma Group Ltd (ASX: MYX) continued to please the market last Friday with the group's share price rising 4.6% after the release of the company's full year results.
Those gains add to an already impressive 12-month performance by Mayne Pharma in which the share price has soared approximately 40% on the back of a number of company transforming moves, in particular the shift to in-house distribution of the Doryx, Methamphetamine and Oxycodone franchises.
Here are the highlights from today's results:
- Revenue slipped 1% to $141.4 million
- Gross profit gained 7% to $80 million
- Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 10% to $36.4 million
- Underlying net profit after tax dropped 25% to $13.4 million
- Net debt of $2.6 million
Outlook:
While at first glance the results may not look that impressive it's important to understand the drivers of the result and the structural changes which have occurred to Mayne's business model over the past year.
Key drivers for the business include the benefits of the acquisition of US Doryx which provided US$7.9 million from its re-launch in May 2015 when Mayne brought the distribution company in-house for the generic Methamphetamine and Oxycodone product family.
Importantly, the group achieved a significantly stronger second half which was driven by US Doryx, key US generic products and Metrics Contract Services. In fact, the gross profit from US Doryx for the four months under Mayne Pharma's ownership was stronger than it had been in the whole of FY 2014.
Management provided guidance stating there was: "significant growth expected in FY16 driven by recent product acquisitions, new product launches, increased market penetration of existing products and accelerated growth in Metrics Contract Services."
Amongst the potential tailwinds for Mayne Pharma in the current year are:
- The launch of three new products in the USA and seven in Australia
- FDA approval of 50mg Doryx tablet and TGA approval of 12 new products
- The out-licensing of Lozanoc into nine more countries including France and Germany
- A pipeline of 30 plus products targeting US markets with 17 pending FDA approval
- And a pipeline of 20 plus products targeting Australian markets with seven pending TGA approval
- Advanced pipeline of 17 products filed with the FDA
With numerous potential growth drivers this year, Mayne Pharma could be one for the watch list.
