Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Shareholder Meeting (November 2022)
32 slides from Mayne Pharma's shareholder meeting presentation, Nov 30, 2022
Slide 1: Mayne Pharma Group Limited Annual General Meeting
Mayne Pharma Group Limited Annual General Meeting 9.00am (Melbourne time) 30 November 2022 1
Slide 2: Disclaimer
Disclaimer The information provided is general in nature and is in summary form only. It is not complete and should be read in conjunction with the company’s audited Financial Statements and market disclosures. This material is not intended to be relied upon as advice to investors or potential inves
Slide 3: How to ask a question
How to ask a question ● To ask a written question select the Q & A icon ● Select the topic your question relates to from the drop-down list ● Type your question in the text box and press the send button ● To ask a verbal question follow the instructions below the broadcast window 3
Slide 4: How to vote
How to vote ● When the poll is open, select the vote icon at the top of the screen ● To vote, select either For, Against or Abstain ● You will see a vote confirmation ● To change or cancel your vote “click here to change your vote” at any time until the poll is closed 4
Slide 5: Introduction
Introduction Frank Condella Prof Bruce Robinson David Petrie Shawn Patrick O’Brien Chair Non-Executive Director Non-Executive Director CEO & Managing Director Dr Carolyn Myers Dr Katie Macfarlane Ann Custin Patrick Blake Aaron Gray Non-Executive Director Non-Executive Director Non-Executive Director
Slide 6: Agenda
Agenda 1 Chair’s Address 2 Business Update 3 Formal Business 4 Closing 6
Slide 7: Chair's Address
Chair’s Address Frank Condella
Slide 8: Board transformation agenda
Board transformation agenda ● Board refresh with the addition of five new directors - Frank Condella, appointed to the Board in 2018, appointed Chair effective 30 September 2021 - Shawn Patrick O’Brien, appointed to the Board 1 October 2022 Board and - Carolyn Myers, PhD, appointed 4 October 2021 ma
Slide 9: Metrics Contract Services sale
Metrics Contract Services sale Strengthened balance sheet: paydown of syndicated debt facility strengthens the 1 balance sheet to support Mayne Pharma’s strategic priorities Unlock shareholder value: return value to shareholders through capital management 2 initiatives More focused: Creating a more
Slide 10: Use of funds from sale of Metrics Contract Services
Use of funds from sale of Metrics Contract Services ● Received sale proceeds of US$475m (~A$722m) Indicative use of funds1 A$m US$m ● Repaid syndicated debt facility - A$361m Metrics proceeds 722 475 ● Reducing receivables facility – US$35m at completion of Metrics Transaction / restructuring costs
Slide 11: FY22 financial overview
FY22 financial overview1 Change A$million FY22 FY21 FY22 v FY21 Reported revenue 424.8 400.8 6% Reported gross profit2 171.0 182.0 (6%) Reported EBITDA 87.4 66.1 32% Reported net loss after tax (263.3) (208.4) nm Underlying EBITDA3 45.7 63.5 (28%) Underlying EBITDA (excl. NEXTSTELLIS®)4 89.7 72.2 24
Slide 12: Business update
Business update Shawn Patrick O’Brien, CEO and Managing Director Aaron Gray, CFO
Slide 13: Observations from my first days
Observations from my first 60 days ● Ensure NEXTSTELLIS® is a success ● Comprehensive dermatology franchise ● Operational and commercial excellence ● Reduce complexity ● Focus on generating operating cash and returning the Patients business to profitability - Metrics EBITDA contribution was ~A$46m1
Slide 14: Strategic priorities to drive shareholder value
Strategic priorities to drive shareholder value Successfully Broaden portfolio Continued growth US commercialise with of Australian based disintermediation NEXTSTELLIS® in complementary specialty the US and products that pharmaceutical Australia leverage existing and CDMO commercial business infrast
Slide 15: NEXTSTELLIS US prescription performance
NEXTSTELLIS® US prescription performance NEXTSTELLIS® weekly performance metrics1 IQVIA leading edge growth 6,000 Last 4 weeks v prior 4 weeks (18 Nov 2022) NRx TRx 5,000 NEXTSTELLIS® 10% 11% 4,000 ANNOVERA® 10% 10% TYBLUME® 4% 10% 3,000 TWIRLA® 12% 8% 2,000 SLYND® 7% 5% NATAZIA® 3% 4% 1,000 LO LOES
Slide 16: NEXTSTELLIS US oral contraceptive: FY23 highlights
NEXTSTELLIS® US oral contraceptive: FY23 highlights ● >6,000 NEXTSTELLIS® new writers since launch ● Average writer productivity increased to 10.2 cycles in 1QFY23 up from 8.0 cycles in 3QFY22 ● 150,000 NEXTSTELLIS.com users in October up from 20,000 average monthly users in 4QFY22 ● Direct to consu
Slide 17: International
International NEXTSTELLIS® launch in Australia Federal Government grant to modernise Salisbury ● High Speed Encapsulator ● High Speed Blister Packing Line with Serialisation capabilities Continue growth of Australian based CMDO business ● Double digit year to date CDMO1 revenue growth ● >10,000 inte
Slide 18: US dermatology
US dermatology Select partners 1 in every 3 dermatology prescriptions can be supported by Mayne Pharma 18
Slide 19: US dermatology trends
US dermatology trends Dermatology monthly prescriptions (TRx)1 ● Key FY22 dermatology launches continue to hold 80,000 strong underlying product market share: 70,000 60,000 Product unit market 50,000 40,000 share2 30,000 20,000 gABSORICA® 48% 10,000 31% gEPIDUO® FORTE - Jul-19 Jul-20 Jul-21 Jul-22 N
Slide 20: Year to date trading
Year to date trading1 Year to date reported revenue (excluding Metrics) ● NEXTSTELLIS® revenues US$4.2m Jul – Oct 22 Jul – Oct 21 ● Portfolio Products revenue impacted by: A$million (4 months) (4 months) - Higher than expected sales and channel inventory levels - NEXTSTELLIS® 6.3 0.0 in June 2022 -
Slide 21: Net cash
Net cash Cash position – as at 31 October 2022 Theoretical cash position after capital management A$m US$m1 A$m US$m1 Cash 369 236 Net cash 320 205 Receivables facility (37) (24) Dividend declared (47) (30) Lease liabilities (12) (7) Proposed capital return (66) (42) Net cash 320 205 Net cash 207 13
Slide 22: Outlook
Outlook ● FY23 is expected to be focused on resetting the business for growth ● The Company’s objective for NEXTSTELLIS® is to achieve underlying demand of 350,000 cycles1 in FY23 ● 1HFY23 cash and earnings expected to be impacted by: - Normalised trading patterns with suppliers and customers (parti
Slide 23: Formal Business
Formal Business Frank Condella
Slide 24: General business – item 1
General business – item 1 ● To receive and consider the Director’s Report, Financial Statements and the Independent Auditors Report for the financial year ended 30 June 2022 24
Slide 25: Resolutions 1, 2, 3 & 4
Resolutions 1, 2, 3 & 4 Election of Ann Custin Election of Dr Kathryn MacFarlane Election of David Petrie Re-election of Professor Bruce Robinson
Slide 26: Proxy votes – Resolution 1, 2, 3 & 4
Proxy votes – Resolution 1, 2, 3 & 4 OPEN TO PROXY Resolution FOR AGAINST ABSTAIN HOLDERS 809.3 113.9m 6.8m 1.1m 1. Election of Ann Custin 87% 12% 1% 833.3m 90.0m 6.7m 2. Election of Dr Kathryn MacFarlane 1.1m 90% 10% 1% 828.0m 90.1m 6.8m 3. Election of David Petrie 6.2m 90% 10% 1% 830.3m 92.1m 6.8m
Slide 27: Resolutions 5 & 6
Resolutions 5 & 6 Adoption of remuneration report Issue of Performance Rights to Chief Executive Officer and Managing Director under the Long-Term Incentive Plan
Slide 28: Key changes to management incentive program
Key changes to management incentive program ● Short term incentive (STI) - Introduction of STI - 50% of STI in cash and 50% deferred in equity (rights) subject to 1 year of service - Introduction of scorecard. All STI metrics have financial implications ● Long term incentive (LTI) - Three year perfo
Slide 29: Proxy votes – Resolution 5 & 6
Proxy votes – Resolution 5 & 6 OPEN TO PROXY Resolution FOR AGAINST ABSTAIN HOLDERS 669.9m 136.8m 6.7m 5. Adoption of remuneration report 5.8m 82% 17% 1% 874.2m 23.2m 6.9m 6. Issue of performance rights to CEO 26.8m 97% 3% 1% 29
Slide 30: Resolutions 7 & 8
Resolutions 7 & 8 Proposed return of capital to shareholders Share consolidation
Slide 31: General business – Resolution 7 & 8
General business – Resolution 7 & 8 OPEN TO PROXY Resolution FOR AGAINST ABSTAIN HOLDERS 923.3m 0.6m 6.8m 7. Proposed return of capital to shareholders 0.5m 99% 0.1% 1% 914.5m 9.2m 6.8m 8. Share consolidation 0.6m 98% 1% 1% 31
Slide 32: Mayne Pharma Group Limited Annual General Meeting
Mayne Pharma Group Limited Annual General Meeting 9.00am (Melbourne time) 30 November 2022 32
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