Impairments drive Mayne to $174m H1 loss
Mayne Pharma has slipped to an impairment-driven half-year loss of $174.2m but says that after experiencing challenging conditions over the past year, a recovery is underway.
MELBOURNE - [AAP] Generic drugs supplier Mayne Pharma (ASX: MYX) has slipped to an impairment-driven half-year loss of $174.2 million but says that after experiencing challenging conditions over the past year, a recovery is underway.
Mayne on Friday reported a loss of $174.2 million for the six months to December 31, compared to its previous first half's $72.7 million profit.
The company took a pre-tax charge of $184 million on its Teva assets as well as charges related to stock obsolescence, sales of short-dated stock below cost, and abnormal returns of the drug Doryx.
Mayne's bottom line was also hit by a restatement of deferred tax assets and liabilities following the recently announced US corporate tax cut.
Adjusting for the one-off items, Mayne's revenue would have been down 13 per cent, and earnings before interest, tax, depreciation and amortisation down 36 per cent.
Mayne Pharma chief executive Scott Richards said the company's first half reflected a challenging environment for generic drugs and a disappointing result for the group's specialty brands.
He said Mayne still has some strong performing business segments, products and pipeline opportunities.
"The pipeline is expected to drive growth in future periods driven by key launches including generic NuvaRing and our patented formulation of SUBA-Itraconazole as an anti-fungal in the United States," Mr Richards said.
Mayne said trading momentum was positive over the last three months of 2017 and was well positioned for a stronger second half based on a stabilising generic market, new product launches and expanding distribution channels.
Shares in Mayne Pharma were up four cents, or 5.7 per cent, to 74 cents at 1044 AEDT.
IMPAIRMENTS WEIGH ON MAYNE PHARMA
* First-half loss of $174.2m, compared to profit of $72.7m
* Revenue down 17.5pc to $243.3m
* No interim dividend, unchanged
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