The Mayne Pharma Group Ltd (ASX: MYX) share price has continued its strong run and is up over 2.5% to 76 cents in early trade.
This brings the pharmaceutical company's week-to-date return to an impressive 13%.
Why are its shares higher?
Today's gain is the result of an announcement released this morning which reveals that Mayne Pharma has received approval from the Therapeutic Goods Administration to release two specialty products into the Australian market.
The first product is Monurol (fosfomycin). Monurol granules are used for the treatment of urinary tract infections.
The single dose antibiotic, which has been licensed from Zambon, is the only one of its kind approved for this indication in Australia and has global brand and generic sales of $220 million.
The second product is Urorec (silodosin). These capsules are used for the relief of lower urinary tract symptoms associated with benign prostatic hyperplasia in men.
Mayne Pharma licensed the Australian rights to Urorec from Recordati. The product is currently approved for marketing in over 50 countries and has global brand and generic sales estimated to be in the region of $750 million.
The benign prostatic hyperplasia market for alpha blockers like Urorec is worth over $45 million per year in Australia, according to research by QuintilesIMS.
Should you invest?
While these products are unlikely to move the needle too much for Mayne Pharma, I believe they are just two of a number of new drugs the company will release this year.
Combined, they may help to cushion the blow of the pricing pressures being faced in the lucrative U.S. generic drugs market.
Whilst it is a little too soon for an investment for me, I do think it is well worth keeping the company on your watchlist.
In the meantime, I would suggest investors consider industry peer CSL Limited (ASX: CSL) instead.
