I am in Mayne since 2013, following every single story over this period. Seeing the management very closely.
Business was doing great until the Trump administration changed the regulations to open up US drug market. That has had a massive hit on Mayne's business. Continuous falling of generic business and asset impairment. Old and known story.
But you look into the latest FY report carefully, you will probably get an indication that the worst part (generic segment) is bottomed out. Revenue and Margin stabilised.
Contract manufacturing has been in continuous growth.
Most promising part is the Specialty Segment, margin is higher, amazing pipeline.
I remember a famous quote from Warren Buffet ..."If a company has a lousy track record, but a very bright future, we will let go the opportunity. This has worked as a charm for us."
No offence to anyone's belief, just my personal strong belief ... Mayne will do better from here and has a huge potential.
Happy business for all.
MYX Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
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