Price Prediction, page-8

With the current level of support and closing consistently at daily highs on the back of good volumes my guess is that it could get close to $1.80.

The Mayne Pharma story is really the "Rise of the Phoenix". This is the rebirth of F H Faulding, the iconic indigenous South Australian pharmaceutical company under another badge. All that was really left of the original Faulding operations after the takeover by Mayne Nickless and the sell off of most of its components (including the Faulding name) was the Salisbury R & D group, intellectual property and manufacturing plant. The resurrection as the spin off Mayne Pharma has followed a similar strategy to what F H Faulding board and management did in the late 1970's & 1980's. That was to establish some USA markets for their key products (Eryc & Doryx), set up a company there (Faulding Inc), buy and existing generic firm as a means of increasing market share and having distribution channels for any new products coming out of Faulding R & D know how. Faulding Pharmaceuticals (as it became) USA growth and in fact global expansion was cut off at the knees when the late Ed Tweddell, the Faulding CEO and Mayne Nickless's Peter Smedley hatched the deal that was selfishly centered around Smedley's desire to establish a supreme broad health logistics business. He had little or no interest in the local or international pharmaceutical R & D, manufacturing and F H Faulding products. It was the wholesaling, distribution to pharmacy and hospitals primarily that he saw as the perfect fit. The funds he would get from selling off the other components meant he would get the F H Faulding logistics operations and network for nothing. Somehow, I think unintentionally Mayne got stuck with the F H Faulding operations at Salisbury. Perhaps there was not a buyer, after all reestablishing a vertically integrated Australian pharmaceutical company was not any easy thing, particularly when all the existing international operations would be separately sold off.

Of course Scott Richards has come a long way and gained a lot of experience since his early days at Faulding in the 1980's but it looks like what worked then is working well again.