The launch of new generic drugs fentora and efudex has been strong, with 40% and 30% market share respectively. Yet Credit Suisse suspects this has not been enough to offset competition and earnings decline in the first half.
While the company has three core drugs driving earnings growth beyond FY21 the market needs evidence of successfully executed product launches before becoming comfortable and incorporating these in valuations, in the broker’s view.
Neutral rating maintained. Target is reduced to 65c from 73c.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $0.65.Current Price is $0.56. Difference: $0.09 – (brackets indicate current price is over target). If MYX meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).