MYX, Mayne Pharma was yet another case of a business hit hard by a small amount of bad news. The US DoJ announced they were investigating a number of companies including MYX for potential price fixing relating to generic drugs. In this case MYX got caught in the net due to a business they recently acquired, TEVA. When the details are looked into the maximum fine they would be likely to face if found to be liable, would be in the range of $10m - the impact on the bottom line would be tiny even in this worst case scenario so the over reaction of the market is likely purely emotionally driven.
In fact the acquisition of TEVA will add much more to the bottom line this year than any potential fine will cost!
Got in at $1.255.
Price taker, no moat
They closed the week at 1.35 so heading in the right direction already!
HY1 18 A pretty dismal half, but obviously better than expectations despite a significant loss mainly due to writedowns. This is one I got wrong, leapt in with too little research, which meant i got in too early, have been in the red most of the time. I suspect the core busines will overcome the problems and the SP will eventually recover. Still a poor decision to buy when i did. Its a pattern with my buying distressed businesses - jumping in too early.
FY 2018 A better than expected result despite another loss, so SP has bounced quite strongly, back in the profit on this one, in two minds about whether to continue holding or not.
H1 19 a return to cash flow positive and profitable, business looks to have turned the corner.
