Mayne Pharma’s profit for the first four months of the financial year has slipped by a third, with the drugs manufacturer blaming the pressures of a volatile US market and declining to issue full-year guidance.
The company says revenue from July to October fell 16 per cent to $153.6 million compared to the same period a year ago, while gross profit dipped 33 per cent to $72.3 million as disruption in the US generic drugs industry continues to hurt its bottom line.
Chairman Roger Corbett will express his disappointment in his company’s financial performance at Friday’s annual general meeting in Melbourne, which follows a doubling of the company’s full-year losses in FY19 and a 76 per cent share price decline over the space of 13 months.
Mayne’s ASX-listed shares fell another 10.1 per cent to a fresh two-month low of 49 cents at Friday’s open.
“Your board and management team, who are significant shareholders in Mayne Pharma, are well aware of this and remain focused and highly motivated to turnaround performance and generate shareholder value,” Mr Corbett will say.
Mayne’s three-year share price decline from an historic high of $2.11 follows its fraught expansion into the US generic drugs market, with the company’s 2016 acquisitions from Teva Pharmaceutical Industries and Allerga since weighed down by continued disruption and stiff competition.
Mayne slumped to a net loss of $280.8 million last year as it continued to struggle during an “extremely challenging” time for the US generic market, while also being forced to make a writedown of $351.7 million following a detailed review of its “intangible assets”.
Scott Richards said in light of continued volatility, Mayne Pharma would not provide full-year earnings guidance.
“As you know, in the last few years our results have been volatile due to the many factors that can impact performance in any period such as the timing of FDA approvals, competitor launches and withdrawals on key products,” Mr Scott says in his address to shareholders.
The company says it is confident the company’s medium-term outlook will be improved by the recent 20-year supply and licence agreement with Belgium-based Mithra Pharmaceuticals to commercialise a “next generation” contraceptive pill.
AAP
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