Gain exposure to the US market, diversify your portfolio with an Australian Pharmaceutical company, gain exposure to a weakening $AUD
Mayne Pharma is an emerging pharmaceutical manufacturer – with direct distribution into US generics markets
Mayne Pharma Group is an Australia-based specialty pharmaceutical company engaged in the development, manufacture and in-licensing of branded and generic products for distribution, either directly or via partners, into the US and Australia markets. MYX has rapidly transformed into a vertically integrated specialty drug manufacturer with proprietary drug delivery expertise and substantial product portfolio.
Mayne Pharma’s stated strategy is heavily geared towards the timely introduction of enhanced generic formulations targeting niche markets, primarily in the US. In the medium term MYX is focused on gaining significant market share that is less vulnerable to price erosion.
Principal Activities:
Drug Delivery – MYX provides oral drug delivery technologies including: Pellet technology (technologies that allow for the formulation of pharmaceuticals with modified release profiles), SUBA technology (this improves the oral bioavailability of poorly soluble drugs) and Cleantaste technology (improving the taste of certain drugs).
Products – These products are sold in Australia, USA, Canada, UK, Korea, Hong Kong and Singapore:
- Astrix (for cardiovascular disease)
- Doryx (for adjunctive treatment for severe acne)
- Eryc (for treatment of bacterial infections)
- Kadian (for management of chronic pain)
- Magnoplasm (initial treatment in abscesses and blind pimples)
- Urocarb (non-obstructive urinary retention)
- Kapanol (sustained release oral formulation of morphine sulphate)
- Percutane pain relief cream and sports cream (no lasting odour sports cream)
Mayne Pharma Branded products include: MYX Aspiring tablets, MYX Doxycycline capsules and MYX Erythromycin capsules
Services – MYX provides a range of services that assist partners’ products in the areas of Oral Drug Delivery Systems, liquids and creams and generic oral product manufacturing and services for start-up biotechnology companies.
MYX has a competitive advantage, with a good manufacturing accredited manufacturing plant in the US that is licensed to produce controlled substances such as narcotics. This limits the threat of competition from low-cost foreign producers outside the US. Expertise in formulation of Cytotoxics and opiates, which was brought in through the Metrics acquisition, complements existing proprietary drug delivery technologies and bodes well for the development pf differentiated generic products. MYX has a substantial number of ANDAs awaiting FDA approval which we see as a solid growth opportunity for the company in the medium-term. The pending approvals also present some risk of rejection.
We see an opportunity to buy under $1.60 and have a medium-term price target of $2.50 on the stock.
Research: Morningstar & Stock Doctor
If you would like to discuss entering or topping up an existing holding in Mayne Pharma, please contact us.
