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Why the Mayne Pharma (ASX:MYX) share price is pushing higher

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The Mayne Pharma Group Ltd (ASX: MYX) share price is pushing higher on Thursday morning.

In morning trade the pharmaceutical company’s shares are up 3% to 36 cents.

Why is the Mayne Pharma share price pushing higher?

There have been a couple of catalysts for Mayne Pharma’s share price gain on Thursday.

The first is improving investor sentiment following positive developments in the US senate overnight. The other is the release of an announcement by Mayne Pharma this morning.

That announcement revealed the commercial launch of Microgestin 24 FE to customers in the United States.

According to the release, Microgestin 24 FE tablets are a generic version of Loestrin 24 FE tablets, which are indicated for the prevention of pregnancy.

The IQVIA estimates that the annual US market sales of the generic equivalents of Loestrin were approximately US$75 million for the twelve months ended October 2020.

Mayne Pharma’s CEO, Scott Richards, commented: “We are very pleased to launch MICROGESTIN 24 FE which complements our existing women’s health portfolio of branded generic contraceptives. As one of the leading suppliers of oral contraceptives in the US, we continue to focus on expanding our portfolio with novel and generic products.”

Mr Richards advised that this will be the first of a number of new contraceptive product launches in 2021.

“Mayne Pharma expects to launch up to seven new contraceptive products over the coming year including the novel oral contraceptive NEXTSTELLIS (E4/DRSP), a generic version of NUVARING and a further five generic products.”

This is expected to give Mayne Pharma a strong position in the US market.

“Mayne Pharma’s women’s health portfolio includes 27 marketed and pipeline products which cover more than 85% of US oral contraceptive prescription volumes. MICROGESTIN 24 FE is the first of five anticipated new product launches sourced from the recently announced strategic partnership with Novast Laboratories,” the CEO concluded.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.