Credit Suisse reviews script volume trends for the company’s key generic and specialty brands. With limited improvement in the final six weeks of FY19 the broker envisages downside risk to consensus forecasts.
The broker also suspects Mayne Pharma will record an impairment of the carrying value of generic assets at the results. Despite forecasting a decline in generics revenue and gross profit in FY20, Credit Suisse expects a 12% increase in group operating earnings (EBITDA) in FY20.
Neutral rating maintained. Target is reduced to 58c from 64c.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $0.58.Current Price is $0.51. Difference: $0.07 – (brackets indicate current price is over target). If MYX meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
