The S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start. In afternoon trade, the benchmark index is up 0.1% to 7,264.4 points.

Four ASX shares that are climbing more than most today are listed below. Here's why they are starting the month strongly:

Allkem Ltd (ASX: AKE)

The Allkem share price is up 5% to $11.95. Investors have been buying this lithium miner's shares amid a rebound in the industry. In addition, a note out of Goldman Sachs may have given its shares a boost. The broker has reiterated its buy rating with a $15.40 price target. This implies potential upside of 29% from current levels.

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is up 3.5% to 72 cents. This morning, this lithium developer announced that it has made further progress at the Rincon Lithium Project in Argentina. Argosy revealed the commencement of lithium carbonate batch production works, where 5.1 tonnes of battery quality product has currently been produced.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is up 21% to $4.02. This appears to have been driven by recent news that it has signed an agreement for the sale of its US generics business. Management expects the transaction to create a leaner organisation and free up working capital to focus on core areas of business growth/value drivers. Another positive is management's belief that it is on course to return to profit.

NextDC Ltd (ASX: NXT)

The NextDC share price is up over 3% to $10.60. This follows the release of a number of bullish broker notes this morning in response to the data centre operator's half-year results. Citi was pleased with the company's performance, noting that "NextDC reported underlying EBITDA of $97.5 million, up +17% yoy, and +5%/6% ahead of CitiE/Visible Alpha consensus." It has a buy rating and $12.60 price target on the company's shares.

The post Why Allkem, Argosy Minerals, Mayne Pharma, and NextDC shares are racing higher appeared first on The Motley Fool Australia.

The share price of S&P/ASX 300 Index (ASX: XKO) stock Mayne Pharma Group Ltd (ASX: MYX) has soared since the company dropped its half-year earnings on Tuesday morning.

Right now, the pharmaceutical manufacturer's stock is trading at $4 – 27% higher than it was before it broke a trading halt with news of its results, a divestment, and its capital return.

Let's take a closer look at what's been going right for the ASX 300 share this week.

ASX 300 share Mayne Pharma rockets 27% in 2 sessions

Here are the key takeaways from Mayne Pharma's first-half earnings:

• $101.2 million of revenue excluding discontinued segments – a 33% drop on that of the prior comparable period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a $99.2 million loss
• $129.2 million net loss after tax – down from a $66.3 million loss in the pcp
• Basic earnings per share (EPS) came in at 17.6 cents
• No dividend declared

The company's earnings were dinted by lower revenues, driven by higher inventory levels, discontinued products, and foreign exchange losses.

The company's branded products division saw revenue more than triple to $13.4 million last half amid strong growth in NEXSTELIS sales. Its portfolio products division saw revenue fall 49% to $60.1 million. Finally, its international segment's revenue was flat at $27.6 million.

What else did the company announce this week?

The Mayne Pharma share price was put into a trading halt on Monday morning, returning to trade on Tuesday, as the ASX 300 company prepared to release news of a material divestment and its capital management.

Later that day, it announced the sale of its US retail generics portfolio business for up to US$90 million cash and up to US$15 million of contingent milestone payments.

The move supports the company's aim to transform into a speciality pharmaceutical company with leading positions in women's health and dermatology.

It also announced the cancellation of its $113 million capital return on Tuesday. It said the return was no longer in the company's best interests.

What did management say?

Mayne Pharma CEO Shawn Patrick O'Brien commented on the news seemingly driving the ASX 300 share sky-high in recent sessions, saying:

We have taken decisive action this half to address the issues that have created the disappointing results in both our PPD and International businesses.

We are creating a leaner company with strong commercial and sales execution capabilities and [with the sale of the US retail generics business] we move a step closer to achieving our goal of generating operating cash and returning the business to profitability.

The board is supportive of our strategy and ambition, and the cancellation of the capital return is a prudent step to retain balance sheet flexibility whilst we drive improved operating performance, and the board considers the appropriate capital structure to support profitable growth and a restoration of shareholder value.

What's next?

The company heralded an encouraging start to the second half. It flagged improvement in its dermatology segment and positive impacts from the scaling up of its US women's health business.

The latter is on track to exit financial year 2023 with a positive run rate contribution. Meanwhile, the newly acquired TherapeuticsMD portfolio is expected to deliver positive earnings in the second half.

At the same time, launches of various products are expected to drive growth across the company.

Maybe Pharma share price underperforms the ASX 300

Despite this week's surge, the Mayne Pharma share price is still in the longer-term red.

It has fallen 5% so far this year and 13% over the last 12 months.

For comparison, the ASX 300 has gained 4% year to date and 2% over the last 12 months.

The post Guess which ASX 300 share has rocketed 27% in 2 days since reporting appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

De Grey Mining Limited (ASX: DEG)

The De Grey Mining share price is up 5% to $1.36. This appears to have been driven largely by a broker note out of Macquarie this morning. According to the note, the broker has retained its outperform rating and $1.90 price target on the gold developer's shares.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 5.5% to $3.69. Investors have been buying this ecommerce company's shares since the release of its half-year results on Monday. However, one broker that isn't buying is Credit Suisse. It is feeling pessimistic about the company's future given Amazon Australia's significant market share gains and Kogan's inability to compete with the size of its range. The broker expects Kogan to have to focus on a core range to avoid inventory issues, which could limit its growth.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price almost 7% to $3.36. This is despite the pharmaceutical company reporting a large first-half loss and announcing the cancellation of its proposed capital return. Investors appear to be responding well to news of the sale of its US generics business and management's belief that it is on course to return to profit.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 4% to 96.7 cents. This morning, this biotech released its half-year results. But as the company is barely generating revenue, it is likely to be a separate announcement that has got investors excited. That announcement reveals that the results from the phase 3 chronic heart failure trial, DREAM-HF, in patients with reduced ejection fraction (HFrEF) highlight the potential for rexlemestrocel-L to make a key difference in patient outcomes, including mortality, heart attack, or stroke.

The post Why De Grey, Kogan, Mayne Pharma, and Mesoblast shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price is down over 3% to $1.78. This follows the release of the gold miner's production update this morning. Gold Road revealed that its Gruyere operation delivered annual production of 314,647 ounces. This means the company only achieved the low end of its annual guidance range of 300,000 ounces to 340,000 ounces.

MA Financial Group Ltd (ASX: MAF)

The MA Financial share price is down almost 9% to $4.52. Investors have been selling this diversified financial services company's shares following the release of a profit update. The company, formerly known as Moelis, advised that it expects to report underlying earnings per share growth of 28% to 30% in FY 2022. While this is strong, it has fallen short of its prior guidance of 30% to 40% growth. Management blamed this on delays in completing multiple corporate advisory transactions.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 5.5% to 21.7 cents. This morning, the specialty pharmaceuticals company announced that it would be delaying its impending $65.5 million capital return by at least two months. It also warned that it reserves the right to further defer, reduce, or cancel the capital return.

Westgold Resources Ltd (ASX: WGX)

The Westgold share price is down over 4% to $1.09. This morning, Macquarie downgraded this gold miner's shares to a neutral rating with a $1.10 price target. The broker made the move largely on valuation grounds after some strong gains in recent weeks.

The post Why Gold Road, MA Financial, Mayne Pharma, and Westgold shares are dropping today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price is down 5.5% to 41.5 cents. This has been driven by the company's institutional placement. The rare earths developer has received firm commitments for a $121 million placement to accelerate the Nolans Project development schedule. These funds are being raised at a 15.9% discount of 37 cents per new share.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down over 10% to 21.5 cents. This morning the pharmaceutical company announced that it has signed a transaction agreement and related license agreement for a portfolio of on-market women's health products from TherapeuticsMD for US$140 million. The products' net revenue in the third quarter of 2022 were US$20.9 million and gross profit was US$17.1 million.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 4.5% to $4.64. This is despite the lithium giant being added to the ASX 50 index at the quarterly rebalance. Investors appear to have concerns about lithium prices following a couple of bearish broker notes and news of a new major lithium mine development.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 5.5% to $1.62. Investors have been selling this payments company's shares following the release of a transaction update. According to the release, transaction value growth slowed to 16% during the month of November. This is a sharp slowdown compared to its year to date growth rate of 43%.

The post Why Arafura, Mayne Pharma, Pilbara Minerals, and Tyro shares are dropping today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Coronado Global Resources Inc (ASX: CRN)

The Coronado share price is down 3% to $2.02. This follows the release of a market update from the coal miner this morning. That update revealed that ongoing wet weather in the Bowen Basin in Queensland has impacted its previously communicated production and cost guidance.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is down 3% to $28.48. This appears to have been driven by a broker note out of Morgans. This morning the broker downgraded the language testing and student placement company's shares to a hold rating with a $30.75 price target. The broker made the move on valuation grounds.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 3.5% to 23.2 cents. Investors have been selling this pharmaceutical company's shares this week following the release of a disappointing trading update. Mayne Pharma revealed that for the four months ended 31 October, its revenue from continuing operations came to $59 million. This is down 29.5% over the prior corresponding period.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 1.5% to $111.74. This may have been driven by a broker note out of Citi. According to the note, the broker has downgraded the mining giant's shares to a neutral rating with a $115.00 price target. This follows the release of lower than expected iron ore guidance for FY 2023.

The post Why Coronado, IDP, Mayne Pharma, and Rio Tinto shares are dropping today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has continued its slide and is down a further 1.5% to 29 cents. This morning, analysts at Bell Potter retained their speculative hold rating and slashed their price target on the struggling infant formula company's shares by 22% to 35 cents. This follows a trading update which revealed that half year revenue is expected be flat despite delivering strong first quarter growth and the much-hyped US expansion.

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is down a further 4% to $7.73. Investors have been selling this quick service restaurant operator's shares since the release of its half year results. Collins Foods revealed solid top line growth but significant margin weakness. Unfortunately, the latter is expected to remain in the second half. Though, it is worth noting that Morgans sees value in Collins Foods' shares after these declines. This morning it retained its add rating with a $9.50 price target.

Dusk Group Ltd (ASX: DSK)

The Dusk share price is down 9% to $1.87. This follows the release of a trading update from the speciality retailer. Dusk revealed that total sales for the first 19 weeks of FY 2023 were up 23.9% on the prior corresponding period. This is a slowdown from 33.2% growth reported for the first 8 weeks of the financial year.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 19% to 22 cents. This has been driven by the release of a disappointing trading update at the pharmaceutical company's annual general meeting. For the four months ended 31 October, Mayne Pharma's revenue from continuing operations came to $59 million. This is down 29.5% over the prior corresponding period.

The post Why Bubs, Collins Foods, Dusk, and Mayne Pharma shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, the pharmaceutical company's shares have crashed 27% to a multi-year low of 20 cents.

Why is the Mayne Pharma share price crashing?

Investors have been selling down the Mayne Pharma share price on Wednesday following the release of a trading update at the company's annual general meeting.

According to the release, the company's revenue has fallen sharply during the first four months of FY 2023.

For the four months ended 31 October, Mayne Pharma's revenue from continuing operations came to $59 million. This is down 29.5% over the prior corresponding period. This is despite the company generating $6.3 million in revenue from its new Nextstellis product, which wasn't on sale a year ago.

The main drag on its performance has been dermatology sales in the Portfolio Products segment. This weakness has offset sales growth from retail generics and led to Portfolio Products revenue almost halving during the four months.

Management blamed this on higher than expected sales and channel inventory levels in June 2022, discontinued products, and higher gross to net charges. The latter includes patient savings (copay card costs).

Outlook

Management's outlook for the remainder of the half also appears to have spooked investors and put pressure on the Mayne Pharma share price.

It advised that first half cash and earnings are expected to be impacted by a number of items. This includes normalised trading patterns with suppliers and customers, higher than expected copay card costs in dermatology, and a Nextstellis direct to consumer campaign in the US.

Though, one positive is that its focus on driving improved profitability and cash flow is expected to lead to a return to positive EBITDA in FY 2024.

Time will tell if that is the case. Nothing Mayne Pharma has done in recent years appears to have gone to plan. As a result, its shares are now down over 90% from 2016's highs.

The post Why is this ASX All Ords share crashing 27% today? appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

CogState Limited (ASX: CGS)

The CogState share price was up 51% to $2.12 before being paused from trade. Investors appear to have been scrambling to buy the neuroscience technology company's shares after Japanese drugmaker Eisai released phase 3 data on its experimental drug for Alzheimer's disease. That data showed that the drug has helped slow cognitive decline in patients in the early stages of the illness. Cogstate has an agreement with Eisai.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is up 6% to 27 cents. This morning this pharmaceutical company announced the appointment of its new CEO. Mayne Pharma has appointed Shawn Patrick O'Brien to the top job. The company notes that O'Brien has more than 35 years of global pharmaceutical industry experience building successful enterprises. This includes several senior leadership roles at AstraZeneca.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price is up almost 5% to $2.01. This follows news that the oncology company has developed a new formulation of Zantrene that enables peripheral (arm or leg vein) intravenous (IV) delivery to patients. Management highlights that this novel and improved formulation provides clinicians with an easier to use alternative to the current central line formulation of Zantrene. It feels the formulation has greater market potential.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 4% to $8.79. This morning the team at Macquarie retained its outperform rating and lifted its price target on the coal miner's shares by 20% to $12.00. Macquarie made the move after upgrading its earnings estimates to reflect stronger than expected thermal coal prices.

The post Why Cogstate, Mayne Pharma, Race Oncology, and Whitehaven Coal are charging higher appeared first on The Motley Fool Australia.

ASX healthcare shares have been a mixed bag this earnings season, with some names completely blowing it out of the park, whereas others have left more to be desired.

The S&P/ASX 200 Health Care index (ASX: XHJ) finished up 122 basis points today and has climbed over 1.6% in the past month of trade as well.

Within the basket, these three shares are standouts – but to the downside, not to the upside – after their FY22 results. Let's take a look.

Mayne Pharma Group Ltd (ASX: MYX)

Shares of Mayne Pharma finished the day more than 3% down after its FY22 earnings. Just the day prior, it had nudged past 52-week highs of 38.5 cents.

It now rests at 32 cents at the close on Friday.

In its results, the company reported a 6% gain in revenue. However, this wasn't reflected further down the income statement.

Instead, Mayne printed a net loss after tax of $263 million for the 12 months.

Investors were undoubtedly dissatisfied with the result and sold off shares en masse today, with total volume reaching almost 4.1 million shares.

Atomo Diagnostics Ltd (ASX: AT1)

Shares in Atomo also slipped further into the red today and finished 2% lower at 7.1 cents apiece.

In its report, the company printed an 83.7% year-on-year gain in revenue to $12.34 billion. However, the loss operations worsened by 5% to $5.7 million.

It also left the year with $13 million in cash and no bank debt, putting it in the position to "vigorously pursue its strategic goals in FY23".

Despite the optimism, investors weren't on board with the company today and sold down shares at a volume of more than 158% of the 4-week average.

This brings losses to 76% for the year to date for the company.

MedAdvisor Ltd (ASX: MDR)

Shares in MedAdvisor also finished the day almost 7% down at 14 cents apiece following the release of its FY22 results.

In its report, the company saw operating revenue climb by 75% year on year to $67 million, leading gross margin to climb by 17% to $35 million.

However, in tandem with the other two ASX healthcare shares mentioned above, MedAdvisor saw its loss after tax increase to $17.5 million, worse than last year's result.

Unsurprisingly, therefore, investors punished the share today and drove it back in line with its 52-week closing lows.

It seems that investors were searching for profitability within the ASX healthcare space this earnings season. Those names who failed to demonstrate it or at least a reasonable path to achieving profit are being punished.

The post 3 ASX healthcare shares punished following full-year results appeared first on The Motley Fool Australia.

Three stocks in the S&P/ASX All Ordinaries Index (ASX: XAO) have reached new 52-week highs today.

This comes on a day when the All Ords Index finished 0.55% in the red and the S&P/ASX 200 Index (ASX: XJO) also finished down 0.53%.

The companies are spread across two sectors — healthcare and real estate. Their share prices also defied the downward movement in their respective sectors today.

The S&P/ASX 200 Health Care Index (ASX: XHJ) closed down 1.49% and the S&P/ASX 200 Real Estate Index (ASX: XRE) finished 0.74% lower.

Let's check which ASX companies recorded 52-week highs this Wednesday.

Mayne Pharma Group Ltd (ASX: MYX)  

The Mayne Pharma share price closed 4.41% higher today at 35.7 cents after hitting an intraday high of 42.5 cents just after market open. Today, the pharmaceutical company announced it was selling its Metrics Contract Services business in the US for $679 million.

Today's movement continued the gains the share price made on Monday when Mayne Pharma announced it had received US Food and Drug Agency approval for a hormonal contraceptive ring. The company's stock closed 1.5% higher on that news.

Sigma Healthcare Ltd (ASX: SIG) 

Another ASX healthcare share has reached a new 52-week high today. Sigma Healthcare shares closed up 2.19% at 70 cents each, reaching a high of 70.5 cents in intraday trading. The movement came on no new announcements from the company.

The rally in the pharmacy franchise company's shares started after the stock hit a six-month low in May. More recently, Sigma's share price has gained an impressive 11% over the last two trading sessions.

Vicinity Centres (ASX: VCX) 

Finally today, this retail property group's share price has closed flat at $2.11 after hitting its 12-month high of $2.12 in intraday trade on Wednesday. No news emerged from the company today, suggesting its fundamentals are unchanged but its shares are rallying.

Vicinity Centres shares have gained 12.5% over the last month. 

The post 3 ASX All Ordinaries shares rocking new 52-week highs on Wednesday appeared first on The Motley Fool Australia.

The Mayne Pharma Group Limited (ASX: MYX) share price is up a healthy 5% after rocketing today amid a major company announcement.

Shares in the ASX pharmaceutical company currently trade for 35.7 cents apiece after soaring 25% to an intraday high of 42.5 cents a share just after market open.

They're currently outperforming the broader S&P/ASX 200 Health Care Index (ASX: XHJ) which is down 1.5%. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.37% in late afternoon trade. 

Let's find out more about why the stock is rallying.

What was announced today?

Mayne Pharma announced that it has entered into an agreement with US multinational healthcare company Catalent, Inc. (NYSE: CTLT) to sell its Metrics Contract Services business for $679 million.

Metrics is a contract development and manufacturing company (CDMO) based in North Carolina, US. The company has contracts with international biotech and pharmaceutical companies.

Mayne Pharma will receive approximately $636 million for the sale.

Commenting on the sale, Mayne Pharma chair Frank Condella said:

This transaction unlocks significant value for Mayne Pharma shareholders and creates a leaner and more focused business with financial flexibility to support its strategic priorities. The Board believes the agreement with Catalent represents an attractive opportunity for a business which has reached maturity under Mayne Pharma's ownership.

In conjunction with the sale, Mayne Pharma has agreed on the terms of a five-year supply agreement
with Catalent to ensure supply continuity of products from the Greenville facility.

Mayne Pharma share price snapshot

Shares of Mayne Pharma Group are up 21% year to date.

This price performance is significantly beating the broader market, with the ASX 200 Index down 7.5% over the same period.

At the current share price, the company's market capitalisation is around $622 million.

The post Mayne Pharma share price rockets 25% on $680 million payday appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are racing higher:

Graincorp Ltd (ASX: GNC)

The Graincorp share price is up almost 6% to $8.08. This morning the grain exporter upgraded its earnings guidance for FY 2022. For the 12 months ending 30 September, Graincorp now expects underlying EBITDA to be in the range of $680 million to $730 million (from $590-$670 million) and underlying net profit after tax in the range of $365 million to $400 million (from $310-$370 million).

Imugene Limited (ASX: IMU)

The Imugene share price is up 10% to 29.7 cents. This follows news that the biotech company has dosed the first patient from the third cohort in the Checkvacc study at the City of Hope hospital in the US. The aim of this study is to activate the immune system of cancer patients to treat and eradicate tumours.

iSelect Ltd (ASX: ISU)

The iSelect share price has rocketed 73% higher to 27.75 cents. Investors have been buying this price comparison website operator after it accepted a takeover offer from Innovation Holdings Australia – the owner or rival website www.comparethemarket.com.au. The iSelect board is recommending shareholders vote in favour of the 30 cents per share offer at an upcoming scheme meeting.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is up 6% to 36 cents. This morning this pharmaceutical company announced the sale of its Metrics Contract Services business to Catalent for cash consideration of US$475 million (~A$679 million). Allowing for reinvestment needs, the net proceeds from the sale will be used to repay the syndicated debt facility and to return surplus capital to shareholders.

The post Why Graincorp, Imugene, iSelect, and Mayne Pharma shares are racing higher appeared first on The Motley Fool Australia.

The Mayne Pharma Group Ltd (ASX: MYX) share price is up 4.48% on Monday morning amid news the company has received US regulatory approval.

Shares of Mayne Pharma are currently trading at 35 cents each after opening at 33.5 cents a share this morning.

That's currently beating the S&P/ASX 200 Index (ASX: XJO) which is down 0.28%. Meantime, the S&P/ASX 200 Healthcare Index is 0.47% lower.

Let's check the news from Mayne this morning.

What did Mayne Pharma announce?

Mayne Pharma Group and its Belgian partner Mithra Pharmaceuticals have been granted Food and Drug Agency (FDA) approval for a hormonal contraceptive ring for women that aims to reduce the likelihood of pregnancy.

The device, Holoette, contains the medications etonogestrel and ethinyl estradiol for its contraceptive effects.

It will be a generic alternative to Nuvaring that was approved by the FDA in October 2001.

Nuvaring and other corresponding products on the US market achieved approximately US$580 million in sales for the 12 months ended June 2022.

Mayne Pharma CEO Scott Richards said:

We are very pleased to announce the approval of Haloette in the US and look forward to bringing this drug-device generic to market. Mayne Pharma is proudly committed to providing women with more affordable and accessible contraceptive choices.

The device is the company's third regulatory product approval with its development partner Mithra.

Mithra's role is to develop and manufacture Haloette in its facility in Belgium. According to their contract, Mayne Pharma will pay six million euros to the company now the device has received FDA approval. It will pay another 1.6 million euros when the product is sold in the United States.

Mayne Pharma expects that the new contraceptive device will launch in early 2023.

Mayne Pharma share price snapshot

Mayne Pharma shares have gained 17% since the start of 2022 and 13% in the past year.

That's far outperformed the broader healthcare index. It's dropped almost 3.2% year to date and 5% since this time last year.

The company's shares have now gained 21% in just the last month, giving Mayne a current market capitalisation of $608 million.

The post Mayne Pharma share price lifts on FDA approval appeared first on The Motley Fool Australia.

The Mayne Pharma Group Ltd (ASX: MYX) share price finished in the red today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the closing bell, the Mayne Pharma share price was 2% down at 24.5 cents.

Mayne Pharma share price tanks as earnings hit hard

Key takeouts from the pharmaceutical company's 1H FY22 earnings results today include:

• Reported revenues of $196.4 million, down 6% year on year (YoY)
• Reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $48.8 million, up 20% YoY from a non-cash deferred consideration reassessment due to COVID
• Reported net loss after tax of $50.4 million driven by intangible asset impairment
• Underlying EBITDA of $23.7 million, down 38% on 1H FY21
• International division delivered 29% revenue growth on the previous year
• Entered into five new supply agreements during the half with leading pharmaceutical companies.

What else happened this half for Mayne Pharma?

Drilling down into its individual components, Mayne reports that its Metrics business outperformed other sections of the portfolio with revenues up 20% YoY to $46 million.

This carried through to a 33% gain in gross profit while direct contribution was also up 37% to $22.1 million in response.

Perhaps most of the strength was seen in the company's international operating segment, which contributed almost $28 million to the top line. This was a growth of almost 30% on the prior corresponding period (pcp).

In fact, all of Mayne's business lines delivered double-digit growth. Its Australian product revenues were up 15% to $10 million due to the launch of Solarize (diclofenac) gel to treat "actinic keratoses".

Contract development and manufacturing organisation (CDMO) turnover also widened by 39%. This was helped by new development contracts and growing sales of the Kapanol label in Canada and Switzerland.

Taking a more broader view of the company's earnings, there was a slowdown in the pace of growth this half. Reported revenue was 6% behind last year whereas the company's net loss after tax came in at over $50 million.

Mayne ended the half with net debt of $272.6 million bolstered by cash of $114.7 million on the balance sheet at 31 December 2021. It also had another $387.3 million in available liquidity from borrowings and has more than 7x cover over the interest on its debt.

Management commentary

Speaking on the results that might have impacted the Mayne Pharma share price today, CEO Scott Scott Richards said:

At a group level, our underlying results this half have incorporated our significant investment in commercial infrastructure to support the launch of NEXTSTELLIS. Pleasingly, excluding our NEXTSTELLIS investment, underlying EBITDA was up 11% on the 1H FY21 and up 35% on the 2H FY21 despite our retail generics business segment continuing to erode as a result of the sustained competitive pricing environment.

Encouragingly, Metrics Contract Services, International and our dermatology portfolio delivered double-digit earnings growth versus pcp. At the bottom line, we reported a net loss after tax which was impacted by a non-cash intangible asset impairment of the generic portfolio.

What's next for Mayne Pharma?

The company touts its upcoming catalysts as "growth in the dermatology portfolio from recent product launches, the launch of a number of new products in international markets, the potential launch of a generic version of Nuvaring and further growth of Metrics Contract Services".

Aside from it, management is most excited about the Nextstellis segment, in which the company is seeking to enter the "US$3.4 billion short-acting combined hormonal contraceptive market with nearly 10 million American women using CHCs for their contraceptive needs".

Mayne Pharma share price summary

In the last 12 months the Mayne Pharma share price has collapsed by more than 14%. It is also down 17% this year to date. In fact, Mayne is down in the red across all major time frames.

The post Mayne Pharma (ASX:MYX) share price slides on 38% EBITDA slump appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is falling again and down almost 5% to $7.11. Investors have been selling the auto parts retailer's shares after the surprise announcement of the exit of its Chief Executive Officer and Managing Director, Darryl Abotomey. Mr Abotomey is stepping down after a decade leading the company on 28 February 2022.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 3% to 29.2 cents. This appears to have been driven by the pharmaceutical company's annual general meeting update this week. At the event, management was unable to provide guidance for the full year. It also warned that its performance has not been in line with expectations so far in FY 2022.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price has sunk 13% to $3.30. This means the oncology company's shares have now given back all of yesterday's gains and some more. Race's shares jumped notably higher yesterday following the release of a study update.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price has continued to slide and is down a further 9% to $11.42. Investors have been selling the enterprise software company's shares since the release of its full year results on Tuesday. TechnologyOne delivered a 43% increase in SaaS ARR to $192.3 million and a 19% lift in profit before tax to $97.8 million. However, this wasn't enough for a couple of brokers. This morning both Macquarie and UBS downgraded the company's shares to the equivalent of sell ratings. These downgrades were made largely on valuation grounds.

The post Why Bapcor, Mayne Pharma, Race Oncology, and TechnologyOne shares are sinking appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Integral Diagnostics Ltd (ASX: IDX)

The Integral Diagnostics share price is down 15% to $4.60. This is despite the diagnostic imaging provider reporting a 27.2% increase in revenue to $350.9 million and a 25.3% jump in net profit to $38.1 million in FY 2021. Management revealing that some of its businesses have been hit with COVID-19 related restrictions and closures in FY 2022 appears to be weighing on its shares.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price has crashed 10% to 26.7 cents. This follows the release of a disappointing full year result by the pharmaceutical company. It reported a 12% decline in revenue to $400.8 million and an 18% reduction in EBITDA to $66.1 million. This was due to FX headwinds and weak generic products sales. Finally, due to another non-cash impairment of its generics business, Mayne Pharma posted a loss after tax of $208.4 million.

NEXTDC Ltd (ASX: NXT)

The NEXTDC share price is down over 5% to $12.79. Investors have been selling the data centre operator's shares despite it announcing a record result in FY 2021. NEXTDC reported a 23% lift in revenue to $246.1 million and a 29% increase in EBITDA to $134.5 million. Looking ahead, more strong growth is expected in FY 2022. Management is guiding to revenue growth of 16% to 20% and EBITDA growth of 19% to 23%.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is down 3% to $62.13. This follows the release of the conglomerate's full year results. Although Wesfarmers delivered strong profit growth in FY 2021 and announced a $2.3 billion capital return, its FY 2022 trading update looks to have concerned investors. Management revealed that Bunnings sales are down 4.7% financial year to date and combined Kmart and Target sales are down 14.3%.

The post Why Integral Diagnostics, Mayne Pharma, NEXTDC, & Wesfarmers are dropping appeared first on The Motley Fool Australia.

At the time of writing, the pharmaceutical company's shares are down 10% to 26.5 cents.

This leaves the Mayne Pharma share price trading within touching distance of its multi-year low of 26 cents.

Mayne Pharma share price sinks after posting $208.4 million loss

• Revenue down 12% to $400.8 million
• Reported earnings before interest, tax, depreciation and amortisation (EBITDA) down 18% (or 5% in constant currency) to $66.1 million
• Underlying EBITDA down 10% to $86.5 million
• Loss after tax of $208.4 million

What happened in FY 2021 for Mayne Pharma?

FY 2021 was another tough year for Mayne Pharma. Currency headwinds and weak generic products sales led to a 12% year on year decline in revenue to $400.8 million. Management notes that its generic products business was impacted by new competition on key products and ongoing pricing pressures across the portfolio.

And due to Nextstellis set-up costs, the company's EBITDA fell harder. It was down by 18% on a reported basis to $66.1 million. If you exclude these set-up costs, EBITDA would have been down just 10%. This was thanks also to operating expenditure reductions of $18 million.

But no amount of cost savings could stop Mayne Pharma from posting a loss after tax in FY 2021. It declared a loss of $208.4 million for the year. This was driven by a $229.3 million non-cash intangible asset impairments of the generic portfolio. This follows a $99 million impairment to the generics business in FY 2020.

What did management say?

Mayne Pharma's CEO, Scott Richards, commented: "At a group level, results have been impacted by the weakening USD which had a $10m adverse impact on EBITDA, the COVID-19 pandemic and ongoing challenges in the US retail generic sector."

"On a constant currency basis, reported revenue was down 3%, reported EBITDA down 5% and underlying EBITDA down 10% excluding NEXTSTELLIS set up costs. Pleasingly, all segments other than the Generic Products segment contributed to EBITDA growth compared to the prior corresponding period (pcp)."

What's next for Mayne Pharma?

One possible glimmer of hope for the Mayne Pharma share price is management's positive view on the long term. This is thanks to its pipeline of products with large addressable markets.

Mr Richards said: "The Company has significantly strengthened its US dermatology pipeline in recent months signing four supply and distribution agreements with leading suppliers for eleven dermatology products which treat key skin conditions such as acne, psoriasis and rosacea. Our partnering success validates our unique go-to-market approach in dermatology which focuses on providing better outcomes for patients, prescribers, and specialty pharmacies."

"All products have final FDA approval other than two which have tentative FDA approval. The two largest products with combined IQVIA sales of more than US$300m are expected to be meaningful contributors to our business this fiscal year given current market conditions and competitive dynamics. The Company continues to prosecute its other programs pending at the FDA including a generic version of Nuvaring, which is targeting an addressable market of US$680m."

The company also expects its growth to be boosted by the successful commercialisation of Nextstellis in the US and Australia, the launch of more than a dozen dermatology and women's health products in the US targeting markets with IQVIA sales of US$1.5 billion, the accelerating growth of Metrics Contract Services and International, and continued optimisation of its cost base.

Though, judging by the Mayne Pharma share price performance today, some investors aren't sticking around to see if FY 2022 is a big improvement on the last few years.

The post Mayne Pharma (ASX:MYX) share price crashes 10% on $208.4m loss in FY21 appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) fell today by 0.4% to 7,460 points.

Here are some of the highlights from the ASX:

Afterpay Ltd (ASX: APT)

The Afterpay share price surged another 12% today.

Readers may have seen yesterday that the US payments giant Square has proposed to buy Afterpay in an all-share deal for $39 billion.

Under the terms of the deal, Afterpay shareholders will receive a fixed exchange ratio of 0.375 Square shares for each Afterpay share.

Based on a Square share price of US$247.26 on 30 July 2021, that implied a transaction price of $126.21 per Afterpay share. But overnight the Square share price increased around 10% to US$272.38, increasing the value that Afterpay shareholders will receive if it were to stay at this price.

When Afterpay first announced the news, the Afterpay co-CEOs Anthony Eisen and Nick Molnar said:

By combining with Square, we will further accelerate our growth in the US and globally, offer access to a new category of in-person merchants, and provide a broader platform of new and valuable capabilities and services to our merchants and consumers. We are fully aligned with Square's purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers.

It was the top performer in the ASX 200 today.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price increased slightly after releasing its FY21 result.

It said that its FY21 net profit after tax (NPAT) increased by 11% to $88.1 million. The business reported a "strong" US segment result, with net profit doubling to $17.7 million.

The company pointed to a near record purchased debt ledger (PDL) investment outlay of $293 million. It also saw a record second half gross lending volume of $105 million.

Credit Corp said that it has a record committed starting PDL investment pipeline of $150 million for FY22.

The business will pay a final dividend of $0.36 per share.

Credit Corp said that charge off volumes are growing across all markets and the company anticipates further opportunities to grow purchasing over the course of the year.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne share price dropped 6% today after announcing it had been served with a class action in the Supreme Court of Victoria.

It is being brought by Phi Finney McDonald for the plaintiff and on behalf of all people who bought shares between 24 November 2014 and 15 December 2016.

The proceedings alleges misleading or deceptive conduct and breaches of continuous disclosure obligations regarding alleged anti-competitive conduct in the US that has been the subject of investigations by the US Department of Justice and the Office of the Attorney General in the State of Connecticut.

The company will vigorously defend the proceeding, Mayne Pharma said it emphatically denies any and all allegations of wrongdoing.

The post ASX 200 drops, Afterpay jumps again, Credit Corp rises appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are tumbling lower:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 4.5% to 41 cents. Earlier this week analysts at Citi responded to this struggling infant formula company's disappointing quarterly update by retaining its sell rating and cutting its price target down to 33 cents. Citi isn't expecting its performance to improve greatly in the near term, especially while international borders remain closed.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price has fallen 4.5% to 32 cents. This morning the pharmaceutical company announced that it has been hit with an investor class action. According to the release, the class action alleges the company undertook misleading or deceptive conduct and was in breach of continuous disclosure obligations. This relates to alleged anti-competitive conduct in the United States.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

The Paradigm share price has sunk 10% to $2.00. This follows the release of an update on its Investigational New Drug (IND) application submitted to the US Food and Drug Administration (FDA) in March. The release explains that the FDA has one remaining question relating to its application. And while management is confident it can resolve this question, the market seems less convinced.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price has tumbled 12% to $9.95. The catalyst for this was the completion of the sports betting company's institutional placement and entitlement offer. PointsBet has raised $81 million at $8.00 per share and a further $215.1 million at $10.00 per share. It will now push ahead with its retail entitlement offer. These funds will be used to support North American marketing and client acquisition, technology and product development, and US market access and government licensing fees.

The post Why Bubs, Mayne Pharma, Paradigm, & PointsBet shares are tumbling lower appeared first on The Motley Fool Australia.