The Mayne Pharma Group Ltd (ASX: MYX) share price is leaping higher today, up 7.58% in late afternoon trading.
This will come as welcome news to shareholders who saw Maybe Pharma’s share price fall 11% in the 4 days following the release of its full year 2020 financial results on 21 August. Investors sold off shares after the company reported a 13% fall in revenue and a net loss after tax of $93 million.
Mayne Pharma’s share price, like most shares on the ASX, was savaged during the COVID-19 panic selling earlier this year, falling 59% from 20 January through to the low on 19 March. Since that low, the Mayne Pharma share price has rebounded to gain 74%. Year-to-date it’s down 23%.
By contrast the All Ordinaries Index (ASX: XAO) is down 11% in 2020.
At the current price of 36 cents per share, Mayne Pharma has a market cap of $596 million.
What does Mayne Pharma do?
Mayne Pharma Group is a technology driven pharmaceutical company. It applies its drug delivery expertise to commercialise branded and generic pharmaceuticals with expertise in formulating complex oral and topical dose forms. The company also provides contract development and manufacturing services to more than 100 clients worldwide.
Mayne Pharma has product development and manufacturing facilities in Salisbury, Australia and Greenville, North Carolina in the United States. The company has a global reach through its distribution partners in Australia, North America, Europe and Asia.
Mayne Pharma shares first traded on the ASX in 2007.
Why is the Mayne Pharma share price up today?
The Mayne Pharma share price is surging today on no major breaking news.
Large daily share price swings aren’t all that unusual for Mayne Pharma. Today’s surge is likely due to several factors.
Following the recent selloff, investors are seeing value at the company’s current share price. While its revenues were down over FY19, its international sales grew 4% year-on-year.
Investors may also be buying shares ahead of any news on Mayne Pharma’s Nextstellis contraceptive product. The company has already received US FDA filing acceptance and is in the process of completing the licensing procedures in the US and here in Australia.
With other projects in the pipeline also progressing, today’s share price rise could indicate good news to come. Or, at least, expectations thereof.