Mayne shares fall to two-and-a-half year low Nassim Khadem...

Mayne shares fall to two-and-a-half year low

Nassim Khadem Fairfax an hour ago

Specialty pharmaceutical company Mayne Pharma is the biggest loser among the top 200 stocks, falling more than 8 per cent to 74 cents, its lowest since February 2015.
The stock plunged again on Wednesday following the group's earnings downgrade on Tuesday for fiscal 2017 amid fierce competition in the United States' generic drug sector.
The company said chief executive Scott Richards would relocate to the US from late September "to focus on the critical growth drivers of the business and help lead and execute the company's various strategic initiatives".
Mayne said on Tuesday revenue for the 2016-17 year would be $581 million.
Underlying earnings before interest, tax, deprecation and amortisation will be between $212 million and $216 million.
Net profit will come in at between $92 million and $95 million.

The company said chief executive Scott Richards would relocate to the US from late September "to focus on the critical growth drivers of the business and help lead and execute the company's various strategic initiatives".

Mayne has been battling against cheaper generic pricing and a US price-fixing lawsuit filed by 20 states accusing six companies, including Teva and Mayne, of conspiring to artificially inflate prices of an antibiotic and a diabetes drug.
The company said it would write down $25 million in the 2017 accounts the value of generic drugs it acquired from global pharma group Teva, but that these changes "do not affect the cash flow or underlying profitability of the company".