MYX – UBS rates the stock as Neutral

Mayne Pharma has entered into a supply agreement with Chinese base manufacturer Novast Laboratories for 13 US generic oral contraceptive products, including five not previously marketed.

UBS estimates annualised cost savings of around US$ 3-5m per annum and assumes realisation from FY22.

While this comprehensive portfolio positions the company to compete effectively, the broker notes the market for oral contraceptives is very competitive.

Neutral rating maintained. Target rises to $0.44 from $0.42.

Sector: Pharmaceuticals, Biotechnology & Life Sciences.

Target price is $0.44.Current Price is $0.43. Difference: $0.01 – (brackets indicate current price is over target). If MYX meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →