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- H1 FY21 proved to be a challenging period for Mayne Pharma Group (MYX), as the company copped a $181.3 million net loss amid “challenging” trading conditions
- The pharmaceutical developer also took a hit in its revenue performance, which fell 8 per cent on the prior corresponding period
- Mayne owed the loss to an increasingly competitive generics market, tougher COVID-19 operating conditions and a weakening U.S. dollar
- In some respite, MYX managed to reduce its debt by roughly $40 million to $221 million over the interval
- Investors appear to have responded unfavourably to the announcement, with MYX shares trading 6.45 per cent lower at 29 cents
H1 FY21 proved to be a challenging period for Mayne Pharma Group (MYX), as the company copped a $181.3 million net loss amid “challenging” trading conditions
The result marked a consecutive loss for the pharmaceutical developer and represented one of several unfavourable performance results, including falls across revenue and gross profits.
MYX reported revenues of $208.8 million, down 8 per cent on the prior corresponding period and a similar slip in gross profits, which came in at $96.9 million.
According to a company statement, the loss was predominantly driven by softer results in its generic business, COVID-19 operating conditions and a weakening U.S. dollar.
Mayne attests it experienced limited benefit from new product launches over the period, describing the U.S. retail generic market as “highly competitive” as new players enter the market.
As a result, the company is eyeing investments in activities focused on pivoting the business away from the retail generic segment into dermatology, women’s health, infectious diseases and contract services.
In some respite, MYX managed to reduce its debt by roughly $40 million to $221 million over the interval, wrapping up with a decreased net operating cashflow of $46 million.
Reported earnings before interest tax depreciation and amortisation (EBITDA) were $40.5 million, illustrating a 17 per cent improvement on 1HFY20, however underlying EBITDA fell by 16 per cent to $39.9 million.
Looking ahead, the ASX-lister has commenced four new products in 1HFY21, and says it has made significant investments to increase capacity and capability of its global contract service platforms.
Investors appear to have responded unfavourably to the announcement, with MYX shares trading 6.45 per cent lower at 29 cents at 2:36 pm AEDT.
