The shares of Mayne Pharma Group Ltd (ASX: MYX) jumped almost 3% this morning after the Adelaide-based pharmaceutical company announced the launch of two new patent-protected dermatological products in the United States.
Fabior and Sorilux are complementary dermatology products to Mayne Pharma's Doryx product, which was the first branded product launched by its Specialty Brands segment in the United States in May 2015.
Fabior is a foam product used for the treatment of acne. As acne is the most prevalent skin disease in the United States with over 50 million people affected by it, I believe the product could be a boost to earnings growth moving forward.
Sorilux on the other hand has a much smaller market. It has been designed to be used for the treatment of plaque psoriasis of the scalp and body which affects up to 6 million Americans each year according to the release.
CEO Scott Richards believes both new products participate in attractive and growing markets. Furthermore, he expects the compelling clinical data that both products possess will appeal to both physicians and patients. Especially with their ease of application.
Today's launch is just one of a number in the pipeline that I expect will act as a catalyst to driving earnings growth and a rebound in its share price this year.
With its shares down almost 30% in the last three months over fears of price-fixing allegations and changing hands at just under 15x estimated FY 2017's earnings, I believe it is a bargain buy right now. Especially for those that are willing to buy and hold for the long-term.
In light of this I would put it up there with CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC) as a must-own share in the healthcare sector.
