Pharmaceutical company, Mayne Pharma (ASX:MYX) has flagged a challenging start to the calendar year with competitive pressure impacting its key products.
The company's reported revenue is down 15 per cent on the year earlier period to $154.1 million, while reported gross profit has fallen 20 per cent to $78.6 million.
Mayne Pharma says sales have been impacted by additional competition by key generic products and generic market trading pressures.
The company has also faced typical wholesaler destocking in the retail channel in the first calendar quarter, one-off failure-to-supply penalties emanating principally from products supplied by third party manufacturers, together with shelf stock adjustments resulting from price changes on some products.
Looking forward Mayne expects stronger financial year 20 results driven by recent specialty brand launches, growth of the generic and proprietary dermatology and women’s health portfolios, potential market supply disruptions and the pipeline of committed Metrics Contract Services business.
Shares in Mayne Pharma (ASX:MYX) are trading 12.03 per cent lower at 58 cents.