The company has signed an exclusive licence and supply agreement to commercialise a combined oral contraceptive in the US for total consideration of US$295m. The product is to be launched in the second half of FY21, subject to FDA approval.Credit Suisse assesses, not only does the agreement provide a platform for Mayne Pharma to generate synergies and improve earnings potential in its generic women’s health portfolio, it also provides an opportunity to expand specialty brands.Credit Suisse values the deal at $0.30 a share and increases the target to $0.73 from $0.60. Neutral maintained.Sector: Pharmaceuticals, Biotechnology & Life Sciences.Target price is $0.73.Current Price is $0.62. Difference: $0.11 – (brackets indicate current price is over target). If MYX meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
If the deal is truly worth $0.30/share, we should have seen $0.80 then?!
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