On Tuesday the Mayne Pharma Group Ltd (ASX: MYX) share price finished the day just 1.5 cents higher than its multi-year low of 60 cents.
This means the pharmaceutical company's shares have now lost almost two-thirds of their value since this time last year.
Are they in the bargain bin now?
That's the million dollar question. If pricing pressures ease in the U.S. generic drugs market then there's every chance that Mayne Pharma will prove to be an absolute steal at the current share price.
But as I explained at the start of the month, the generic drugs market is showing no signs of a recovery in prices just yet.
Global generic drugs giant Teva Pharmaceutical saw its shares shed 20% of their value on November 2 after its Generic Drugs segment posted a 37% decline in quarterly profit to US$619 million.
Furthermore, Teva revised its full-year guidance lower and failed to provide any upbeat commentary on the industry. In light of this, I feel it could be some time before generic drug prices recover, which could mean the Mayne Pharma share price decline hasn't ended yet.
What now?
Instead of risking your hard-earned money in Mayne Pharma I would suggest you consider fellow healthcare share CSL Limited (ASX: CSL). I think it is capable of growing its bottom line at a solid rate for the foreseeable future thanks to its immunoglobulins, specialty products, and vaccines businesses.
