The S&P/ASX 300 Index (ASX: XKO) is down 0.3% today, but ASX 300 healthcare stock Mayne Pharma Group Ltd (ASX: MYX) is racing in the other direction.
Shares in the Aussie pharmaceuticals company closed on Friday trading for $4.68. During the Monday lunch hour, shares are swapping hands for $5.60 apiece, up 19.7%.
That's enough to lift the Mayne Pharma share price's one-year performance back into the green, up 3.8% over 12 months.
Here's what spurring buying interest in the ASX 300 healthcare stock today.
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ASX 300 healthcare stock rockets on strong growth
The Mayne Pharma share price is going ballistic after the company released its preliminary half-year results for the six months ending 31 December.
The company announced that it expected its H1 FY 2025 revenue to be between $210 million and $215 million. This represents a 12% to 14% year-on-year revenue increase.
On the earnings front, Mayne Pharma said it expected to report 1H FY 2025 underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $30 million to $32 million. This is up a whopping 275% to 300% from the company's H1 FY 2024 earnings.
The company credited the strong half-year earnings boost to continued growth across its Women's Health portfolio with increased operating leverage. The ASX 300 healthcare stock said its Dermatology unit also saw an improvement in margin, primarily through its product mix.
What did management say?
Commenting on the strong half year for the ASX 300 healthcare stock, Mayne Pharma CEO Shawn Patrick O'Brien said:
We have experienced solid trading conditions in the first half as we execute against our corporate strategies, with robust revenue growth recorded particularly within our Women's Health segment.
We look forward to further updating our investors on our progress and plans at the half year results presentation in late February.
Mayne Pharma is scheduled to release its audited half-year financial results on 26 February.
Management noted that Mayne Pharma's performance since the update provided at its annual general meeting (AGM) on 21 November should be reflected across the entire half and not assumed as a two-month run rate going forward.
As for what investors might expect from the ASX 300 healthcare stock in the second half of FY 2025? The company said it expected to see continued growth, with some seasonal cost impacts from patient payment programs as deductibles reset, along with an increase in promotional expenses for its Women's Health products to drive additional growth.
