Analysts Expect Breakeven For Mayne Pharma Group Limited (ASX:MYX) Before Long
Mayne Pharma Group Limited (ASX:MYX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Mayne Pharma Group Limited, a specialty pharmaceutical company, manufactures and sells branded and generic pharmaceutical products in Australia, New Zealand, the United States, Canada, Europe, Asia, and internationally. The AU$518m market-cap company posted a loss in its most recent financial year of AU$317m and a latest trailing-twelve-month loss of AU$274m shrinking the gap between loss and breakeven. The most pressing concern for investors is Mayne Pharma Group's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Mayne Pharma Group
Consensus from 2 of the Australian Pharmaceuticals analysts is that Mayne Pharma Group is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of AU$18m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 110% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Mayne Pharma Group given that this is a high-level summary, however, keep in mind that by and large pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 6.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Mayne Pharma Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Mayne Pharma Group's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:
Historical Track Record: What has Mayne Pharma Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Mayne Pharma Group's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
