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 Reports and Commentary from the Investment World

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Mayne Pharma Group


Mayne Pharma Group Limited (MYX:ASX)

When we see company insiders buying up large tranches of shares it is often an indicator that the company directors are expecting a pick up in the company's fortunes. This is what has been happening recently at Mayne Pharma Group.

Mayne Pharma Group Limited is an Australian specialist pharmaceutical company. Mayne Pharma has a long and successful history of developing and commercializing improved pharmaceuticals and has launched and marketed numerous products through partnerships with licensees in various countries around the world. Mayne Pharma focuses on delivering to patients improved versions of existing drugs in order to advance safety, efficacy or ease of administration.

Mayne Pharma has a significant product portfolio and pipeline, global reach through distribution partners in Australia, USA, Europe and Asia and a manufacturing facility based in Salisbury, South Australia that employs over 150 people on 30 acres. The operations in Salisbury are capable of developing products from formulation and clinical trial stages through to validation and registration and on to commercial scale manufacture of packaged goods.

Some of the many drugs that Mayne has registered are:

Astrix™ aspirin capsules are the only enteric coated pelletised form of low-dose aspirin on the market.
Their enteric coat allows the release of aspirin to be delayed, until the pellets reach the small intestine, thereby reducing the risk of gastric ulceration that may be experienced with longer term use of immediate release aspirin. Astrix™ is currently licensed and sold in Australia, Hong Kong, Korea, Mauritius, Singapore and Sri Lanka. Opportunities remain for licensing in many more international territories.

Doryx™ capsules and tablets are delayed release oral formulations of doxycycline (a tetracycline class of antibiotic), that can be used treat certain types of infections, as adjunctive treatment of severe acne and as an anti-malarial. Doryx™ capsules and tablets contains enteric-coated pellets of doxycycline hyclate and is the only delayed release pelletised doxycycline product on the market. Doryx™ capsules are currently licensed and sold in Australia, USA and Singapore.

Eryc™ capsules are a delayed release erythromycin (a macrolide antibiotic) produced by Mayne Pharma using proprietary pellet technology. Indicated for the treatment of a wide variety of bacterial infections, Eryc™ erythromycin is formulated to protect erythromycin degrading in the acidic environment of the stomach, for optimal absorption in the intestine.  Eryc™ erythromycin capsules are currently licensed and sold in Australia, Canada, Sweden and the United Kingdom.

Magnoplasm™ paste has been on the Australian market for decades and is Australian made and owned. It is registered with the Therapeutic Goods Administration and is a magnesium sulfate-glycerol paste.Magnoplasm™ paste exerts a powerful osmotic action on living cells. It is a useful initial treatment for abscesses, boils, blind pimples and carbuncles.  It is commonly known as a 'drawing ointment' and can also be used to remove splinters and other foreign bodies.

On the 17th of December 2010, Mayne Pharma submitted a marketing authorisation application in the European Union for SUBACAP, an improved version of an existing drug called Itraconazole, which treats fungal infections. This will be marketed initially into the UK, France, Germany, Spain and Sweden if permission is granted.The EU market for Itraconazole is in excess of $120 million. Applications to the FDA, to market the drug into the US with its estmimated market of $600 million will be commenced shortly. In the US it will replace the current drug called Sporanox.

The expansion of the company's drugs into Europe and the US in the next year and the fact that the insiders have been buying large quantities of shares, indicates a good prognosis for the company in the near future. Add to this the handy dividend of over 2% and the shares look good value at the moment.

Buy Mayne Pharma Group Limited (MYX:ASX) up to $1.00


Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.