Australia's largest stock trading and investment forum Australia's #1 stock forum

MYX

Click for more information

3.13%

$3.95 mayne pharma group limited

Absolutely right and investors must read this article re generic...

First 850 Last

Share
Profile

Follow
justfriendau

1,944 Posts.

406

25/08/17

23:13

Post #: 26774259
Share

Originally posted by LightForce ↑

I had a look at the annual report today and try to foresee what may be the range of the net profit for next year. Thought that I may be able to look for some value here..

If we believe a lot of the industry's talks about generic drug deflation being in the high single digit. Let's say 10% deflation. This will essentially shaved off $42M of gross profit(straight off the bottom line everything else being equal) for MYX assuming same revenue sales in generics division . The other 2 divisions, i.e. MCS and Specialty Brands have combined $90M Gross Profit for FY17. For MYX to maintain same net profit as per FY17, these 2 divisions need to increase by 50%. Not only that, this year's NPAT included $33M gross profit from once-off items. So, to maintain FY17 NPAT, the other divisions need to almost double their profit (i.e. increase by 42+33 = $75M) to make up for the generic drug price deflation impact.

Not a good position to be in indeed for MYX..

Expand

Absolutely right and investors must read this article re generic drug market is at deflation risk in USA which has caused recent crash in medicines companies shares prices

https://www.cnbc.com/2017/08/10/the...risk-now-from-deflation-trade-group-says.html

Last edited by justfriendau: 25/08/17

MYX Price at posting: 67.5¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Brightstar tops votes in 2024 Kalgoorlie Super PITch

From the Floor with Kim Beazley at Diggers and Dealers 2024

Revolutionary inverter technology leads the clean energy charge

RBA keeps rates steady at 4.35%, reflecting expectations

From the Floor with Federal Opposition Leader Peter Dutton at Diggers & Dealers 2024

There are more pages in this discussion • 22 more messages in this thread...

First 850 Last

Add MYX (ASX) to my watchlist

(20min delay)
Last $3.95		Change 0.120(3.13%)		Mkt cap ! $336.0M

Open	High	Low	Value	Volume
$3.80	$4.03	$3.74	$589.4K	150.4K

Buyers (Bids)

No.	Vol.	Price($)
1	572	$3.90

Sellers (Offers)

Price($)	Vol.	No.
$3.95	814	2

View Market Depth

No.	Vol.	Price($)
1	572	3.900
2	715	3.890
5	8915	3.880
1	143	3.870
1	143	3.860

Price($)	Vol.	No.
3.950	814	2
3.960	715	2
3.970	715	2
3.980	4804	4
3.990	143	1

Last trade - 16.10pm 06/08/2024 (20 minute delay)

MYX (ASX) Chart