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Why the Mayne Pharma share price is sinking again today

The Mayne Pharma Group Ltd (ASX: MYX) share price is down 2.3% to 83.5 cents today, although it is up around 15% over a tough couple of years that saw shares change hands for as little as 72 cents this time last year.

The US pharmaceutical drugs retailer has faced problems ever since the November 2016 election of the bombastic US President Donald Trump who has accused wholesale drugs retailers in the US (who are commonly reimbursed by the Federal government via medical aid for veterans for example) of “getting away with murder” in terms of their drugs pricing.

On January 6 the President went on the attack again, but this time via his Twitter feed to some 54 million followers.

Source: President Trump, Twitter.

It seems the President is still determined to bring drug prices down which is a concern for Mayne Pharma and its investors.

Elsewhere the likes of Amazon are looking to get into online drugs distribution via its purchase of PillPack, while others like Apple and Google are also researching ways to reduce healthcare costs for staff and others.

The group recently reported that operating cash flow was down 10% for the first four months of FY 2019 despite revenues growing. Investors may want to watch this business from the sidelines for now.

Motley Fool contributor Tom Richardson owns shares in Amazon, Apple and Google.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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