Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

New Agreement – Is The Mayne (ASX:MYX) Share Price A Buy?

Is the Mayne Pharma Group Ltd (ASX:MYX) share price a buy after revealing a new supply agreement?

Is the Mayne Pharma Group Ltd (ASX: MYX) share price a buy after revealing a new supply agreement?

Mayne Pharma is an Australian specialist pharmaceutical company, creating commericialised and generic products you’ll find in pharmacies across Australia. Mayne Pharma’s history started in South Australia. Today, it develops most of its drugs in Australia and the USA.

Mayne’s New Supply Agreement

The healthcare business said that it has entered into an exclusive license and supply agreement with Mithra Pharmaceuticals to commercialise a “novel” oral contraceptive comprising Estetrol and drospirenone in the United States.

Mayne said that phase 3 clinical studies which enrolled more than 3,700 women have been completed, with approval and launch expected in the first half of the 2021 calendar year.

The US contraceptive market is valued at US$5.4 billion with 10 million American women using short acting hormonal contraceptives. Although Mayne is expecting peak net sales potential to exceed US$200 million per year.

The pharmaceutical business is expecting EBITDA (click here to learn what EBITDA means) to be positive in its first full financial year after approval.

This isn’t the first agreement that Mayne has made with Mithra, they are also partners on the generic NUVARING.

Mayne Pharma CEO Scott Richards said: “This transaction transforms Mayne Pharma and is highly consistent with our stated strategy to build our specialty business with durable, high growth novel products in core therapeutic categories leveraging our commercial capability and know-how in the US.”

If Estetrol is approved it will be the first ‘native’ estrogen approved in a contraceptive product in the US and the first new estrogen introduced in the US in approximately 50 years.

Under the terms of the agreement, Mayne Pharma will pay up to US$295 million comprising US$8.75 million and 4.95% of Mayne Pharma’s shares at closing. It will pay a further US$11 million and 4.65% of Mayne shares following FDA approval, and additional payments based on reaching total net sales targets.

The total US$295 million would be paid if sales exceed US$2.25 billion. There is also a transfer price comprising fixed and variable component based on a percentage of net sales over the term of the license.

Mayne seem very confident about this deal to be paying so much. Time will tell if it’s the right move. The pharmaceutical industry isn’t for me due to reliance on government rules and regulations, I’d rather buy shares of the growth businesses in the free report below.

[ls_content_block id=”14947″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content