In today’s briefing:
- Mayne Pharma (MYX AU): High Risk/Reward as an FDA Letter Causes a Tailspin
- Insignia Financial (IFL AU): Bain Walks Due To “Macro Uncertainty”. CC Capital’s Still In. For Now
- Mayne Pharma (MYX AU): Firm Support From Cosette Would Be Welcome About Now
- Webjet (WJL AU) In Play: BGH/Weiss’ NBIO And Helloworld’s Substantial Stake
Mayne Pharma (MYX AU): High Risk/Reward as an FDA Letter Causes a Tailspin
- Mayne Pharma (MYX AU) shares declined 15.76% after the public disclosure of an untitled FDA letter relating to NEXTSTELLIS promotional materials.
- Mayne opines that the letter is not price sensitive as it does not prevent ongoing NEXTSTELLIS sales. Its response will likely withdraw the problematic presentation and adopt a compliance program.
- The scheme is unlikely to be derailed, as I estimate that the MAC clause should not be triggered in the worst-case scenario of no NEXTSTELLIS sales. Risk/reward is attractive.
Insignia Financial (IFL AU): Bain Walks Due To “Macro Uncertainty”. CC Capital’s Still In. For Now
- You could see this coming. With due diligence expected to close on the 15th May, Bain has notified Insignia Financial (IFL AU) it won’t proceed due to macro uncertainties.
- Discussions remain ongoing with CC Capital. No fixed timeline on those talks, although it appears negotiations will extend beyond the 15th May.
- NBIOs were not an ideal place to hide amid Trump’s trade war. They still aren’t. Insignia is down 14.9% as I type.
Mayne Pharma (MYX AU): Firm Support From Cosette Would Be Welcome About Now
- They say bad things come in threes. First, Mayne Pharma (MYX AU)announced TherapeuticsMD (TXMD US)‘s legal lawsuit. Then shares buckled in the wake of Trump’s executive order on pharma.
- The final straw was the FDA accusing Mayne of giving misleading impression of the risks of its oral birth control pill. Shares are now a whopping 29% adrift of terms.
- Mayne reckons the lawsuit and the FDA letter are not materially price sensitive; and it intends to move forward with the Scheme. A similar intention from Cosette would be welcome.
Webjet (WJL AU) In Play: BGH/Weiss’ NBIO And Helloworld’s Substantial Stake
- In Webjet (WJL AU): Undisclosed Buyer Buying, I addressed the rumours that an undisclosed buyer with ~5% was seeking to add an additional 5% (19.6mn shares).
- On the 12th May, Helloworld Ltd (HLO AU) emerged with a 5.015% stake. The same day, BGH said it had 10.76%. BGH followed with a A$0.80/share NBIO.
- BGH wants a controlling stake in Webjet (WJL AU), and potentially maintaining the listing; suggesting an off-market Offer, with say, a 50% acceptance hurdle being one possibility.
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