Mayne Pharma and Starpharma report losses

Mayne Pharma (ASX: MYX) has reported its results for the 12 months to June 2013, which include a seven and a half month contribution for its $103 million Metrics acquisition. Based on management’s adjusted net profit after tax, Mayne earned $9.6 million from $83 million in revenues. That equates to adjusted earnings per share of 3.7 cents per share (using a weighted average of the shares on issue).

The US Generic Products division, which manufactures and distributes generic pharmaceutical products in the US, was the largest contributor to revenue followed closely by the Mayne Pharma Global (MPG) division. The MPG division is gearing up to launch the highly anticipated SUBACAP product into Europe in financial year (FY) 2014 – the estimated market size for SUBACAP in Europe is US$80 million.

Given Mayne Pharma increased its invested capital by over $110 million in FY 2013, investors will no doubt be watching management closely to see that its strategy and recent acquisitions ultimately value add and create shareholder wealth.

Starpharma (ASX: SPL), whose share price is trading well off its $1.75 52-week high at $1 per share, has also released its full year results. The biotech, which is developing a wide range of products with diverse applications spanning sexual health to agriculture, has reported revenues of $2.4 million and an after tax loss of $5.2 million. With a current cash position of nearly $34 million and a cash burn rate during the year of $9 million, the company would appear to be reasonably capitalised for the next couple of years as it continues its research and development spend.

Starpharma continued to advance its products through the necessary trial phases during the year including the completion of phase 2 and phase 3 for two BV treatments. The company also has a number of important milestones approaching in the coming months.

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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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