The Mayne Pharma Group Ltd (ASX: MYX) share price is flat today at $1.50 after the fast-growing pharmaceutical company reported its half-year results.
Key highlights include:
- Revenue of $294.8 million, an increase of 132% on the prior corresponding period.
- Reported EBITDA of $129.2m, up 217%.
- Reported net profit after tax of $72.7m, up 278% on the first-half of FY 2016.
- Earnings per share of 5.2 cents.
Following the acquisition of the Teva product portfolio, the Generic Products Division (GPD) was unsurprisingly the star performer for the company.
During the half the GPD segment's sales were $222.6 million, up a whopping 399% on the prior corresponding period. Furthermore, gross profit in the segment rose 377% to $125.8 million.
The key drivers of the strong result were the performances of its dofetilide, butalbital, hydrocodone, and methamphetamine drugs. Its dofetilide drug in particular was a highlight, becoming Mayne Pharma's largest selling generic product.
Dofetilide now represents 17% of the segment's revenue and has become the market leader in terms of volume share, commanding over 55% of total prescriptions in the dofetilide market according to management.
As expected, Mayne Pharma's Specialty Brands Division (SBD) had a disappointing half. Due to the loss of market exclusivity for its Doryx acne treatment, sales in the segment fell 38% to $26.8 million.
Finally, its Metrics Contract Services division posted a 20% jump in revenue to $28.1 million and its Mayne Pharma International division saw revenue rise 10% to $17.3 million.
What's next?
The company has a global development pipeline that includes 50 products. Around 40 of these products are targeting the U.S. market with total sales potential in excess of US$6 billion a year.
Furthermore, Mayne Pharma has 19 products waiting for FDA approval with total sales potential of over US$1.3 billion.
Is it a buy?
Whilst there are concerns over what impact President Trump will have on the pharmaceutical industry, I believe Mayne Pharma's current share price and its incredible growth provides investors with a compelling risk/reward.
In light of this I would put the company up there with CSL Limited (ASX: CSL) as one of the best buy and hold investments in the industry.
