Hey Formuso, Not sure about accurate predictions but I am baffled as to why a positive revaluation has not happened. I don't think it will happen in future either. In FY223 Dermatology assets were negatively impaired by A$60M on the back of these assets declaring a -$21M contribution in FY23, now the tables have turned, same assets (plus Rhofade) have now delivered A$44.3M in contributions and the FY23 impairment remains.
I have looked into it in depth and it appears that under GAAP accounting reporting (US uses this), intangible assets which are negatively impaired cannot be positively reevaluated in future. However under IFRS accounting (Australian reporting) they can be reevaluated under certain conditions (eg reasonable expectations of future profit improvements).
I am baffled that an asset which is delivering A$44m in contributions has a recoverable value of A$88.4M. I am sure that if they were to sell this business unit they would receive more than that.
MYX Price at posting:
$5.13 Sentiment: Buy Disclosure: Held
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