Drugs manufacturer Mayne Pharma has more than doubled its full-year losses after the pharmaceutical company struggled during an "extremely challenging" time for the US generic market.
Revenue for the 12 months to June 20 dropped 1.0 per cent to $525.2 million, while the company recorded a writedown of $351.7 million following a detailed review of its "intangible assets".
Mayne Pharma foreshadowed the lacklustre US generic drug market during an announcement in May, which may have helped bolster its share price, up 10 per cent to 52.25 cents at 1148 AEST.
The company has declared no final dividend for a second straight year.
The pharmaceutical maker recorded a FY19 net loss of $280.8 million after a review of its assets took into account current and projected market dynamics.
"Whilst the last two years have been extremely challenging for our business due to competitive pressures in the US generic market, we have undertaken a number of actions to better align our business with market realities and focused the business on sustainable categories and channels," chief executive Scott Richards said.
Reported earnings are down 5.2 per cent to $111.6 million from the prior corresponding period, excluding one-off hits including $13.3 million for abnormal one-off Doryx returns and $16.3 million in restructuring and employee share cancellations.
Doryx is an antibiotic used to treat infection and acne, and to prevent malaria.
The drug company experienced strong growth in its specialty brands segment after both sales and gross profit doubled to $91.6 million, and $79.8 million, respectively.
The company hopes to continue capitalising in this area, launching two new products: Tolsura capsules and Lexette foam.
After expanding the dermatology sales department in 2018, Mayne Pharma experienced growth in drugs Fabior and Sorilux up 54 per cent and 26 per cent, respectively.
The Doryx family more than doubled in USD from the prior corresponding period, excluding the abnormal returns, which negatively effected prior period results.
Mr Richards said the company remains committed to key strategic initiatives of providing value to patients in dermatology, women's health and infectious disease.
MAYNE PHARMA'S FULL-YEAR RESULTS
* Net loss of $280.86m
* Revenue down 1.0pct to $525.2m
* Reported earnings down 4.0pct to $111.6m
* Adjusted earnings down 20pct to $130.9m
* Dividend undeclared.