Mayne Pharma shares fall as earnings update disappoints [IMG]...

Mayne Pharma shares fall as earnings update disappoints

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Mayne Pharma chief executive Scott Richards will relocate to the United States.
Shares in drug maker Mayne Pharma have fallen almost more than 5.5 per cent in early trade after the company said revenue and underlying earnings would come in under market consensus.
Mayne said on Tuesday morning that revenue for the 2016-17 year would be $581 million, well below the consensus for revenue of $624 million from analysts surveyed by Bloomberg.
Underlying earnings before interest, tax, deprecation and amortisation will be between $212 million and $216 million, compared with consensus forecasts of $226 million, while reported net profit will come in at between $92 million and $95 million. Analysts had been expecting profit of $118 million.
Shares in Maybe Pharma fell 5.6 per cent shortly after trading opened to 84.5¢. The stock has now tumbled from a high of $2.11 on August 15, 2016.

The company said that the highly competitive nature of the United States generic drug market will see it write down the value of generic drugs it acquired from global pharma group Teva by $25 million in the 2017 accounts.
"Considering the generic market environment and asset specific factors, the company has reduced the useful life of the Teva related intangible assets from 20 to 15 years commencing January 1. 2017."
The changes to the treatment of the Teva portfolio "do not affect the cashflow or underlying profitability of the company".
Mayne said it was working to offset the "competitive pricing pressure in the retail channel" of the US generic drugs market by slashing costs by $US12 million and pushing into the government and speciality pharmacy channels.
Mayne will also double the size of its sales force in its speciality brands unit, which focuses on a suite of acne drugs.

"The company is confident it can further accelerate market share and the contribution of these three patent-protected dermatology brands as well as supporting any future brands that are added to the dermatology portfolio."
Mayne also announced chief executive Scott Richards will relocate to the US from late September.
"By being based in the US, Mr Richards will be able to focus on the critical growth drivers of the business and help lead and execute the company's various strategic initiatives."


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