Why are Mayne Pharma and Antara Lifesciences shares flying high today?

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While the benchmark index, ASX200 was marginally down, two Australian healthcare penny stocks were on the move on the back of important announcements. Specialty pharmaceutical company Mayne Pharma Group Limited (ASX:MYX) revealed a significant milestone of obtaining the Food and Drug Administration’s (FDA) approval for a new contraceptive with plant-based estrogen. Another healthcare player, Anatara Lifesciences Ltd (ASX:ANR), announced the grant of an Australian patent.

Following the key updates, MYX and ANR shares rose steeply and were trading at AU$0.510 and AU$0.215, up 10.869% and 19.444%, respectively, at AEST 11:16 AM.

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Joining these two healthcare players, a few other players starting the day on a solid note (at AEST 10:30 AM) included XPED Limited (ASX:XPE), up 25%, UUV Aquabotix Limited (ASX:UUV), up 20%, The Food Revolution Group Limited (ASX:FOD), up 15.151%.

Let us zoom lens and discuss MYX and ANR announcement in detail-

Mayne Pharma receives FDA approval for NEXTSTELLIS

Mayne Pharma Group Limited (ASX:MYX) and Mithra Pharmaceuticals SA  revealed that the FDA had approved the New Drug Application (NDA) for NEXTSTELLIS®. The Company expects the commercial launch of the product by June 2021 end.

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NEXTSTELLIS® is a novel combined oral contraceptive having 3 mg drospirenone (DRSP) and 14.2 mg of estetrol (E4) tablets. NEXTSTELLIS® is developed by Mithra and is the first and only contraceptive pill that comprises estetrol, a native estrogen produced from a plant source.

Scott Richards, CEO Mayne Pharma, commented-

After receiving FDA’s approval for the oral contraceptive, Mayne will pay Mithra approximately US$11 million in cash and issue 85.8 million MYX ordinary shares.

Furthermore, the Company has a 20-year exclusive license and supply agreement for NEXTSTELLIS in Australia and the US. The Company disclosed that the product is under active review at the Therapeutic Goods Administration (TGA).

ALSO READ: Mayne Pharma (ASX:MYX) launches this woman contraceptive in the US

Anatara receives an Australian patent grant

Developer of non-antibiotic oral solutions for gastrointestinal indications, Anatara Lifesciences updated the market with the grant of an Australian patent entitled- ‘Antidiarrhea formulation which avoids antimicrobial resistance’. Anatara fully owns the patent, which will expire on 24 August 2038.

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The animal health product Detach® is produced using the patent as a non-antibiotic method to aid in the control of scour (a diarrheal disease), developed using bromelain (pineapple stems extract).

The Company remains confident given the advancements in the animal health industry, particularly the opportunity to extend into feed products that target the need for products for growth enhancement without antibiotics or zinc oxide.

On the patent grant, Steven Lydeamore, CEO of Anatara, stated-

Commencement of piglet challenge study

The key highlights of the study are-

  • The Company has initiated a BONIFF-SMEC piglet challenge study for enterotoxigenic Escherichia Coli.
  • The study is anticipated to be complete in June 2021.
  • Anatara is performing the BONIFF-SMEC study in partnership with Ridley Corporation. In the study, the formulated feed additive of Anatara is combined with Ridley’s semi-moist extruded creep feed for piglets.
  • The combined formulation’s efficacy on piglet health, welfare, and performance will be determined in the project.

DO READ: 5 ASX penny stocks in healthcare space

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