Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Investor Presentation (February 2023)
48 slides from Mayne Pharma's investor presentation, Feb 28, 2023
Slide 1: Mayne Pharma Group Limited 1HFY23 Results Presentation
Mayne Pharma Group Limited 1HFY23 Results Presentation 28 February 2023 Shawn Patrick O’Brien, CEO Aaron Gray, CFO 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: Proposed Sale of Retail Generics Business to Dr Reddy's
Proposed Sale of Retail Generics Business to Dr Reddy’s US$90 million upfront cash consideration US$20-30 million to be received for working capital US$ 15 million in aggregate potential earnouts in year 1 & 2
Slide 4: Proposed Sale of Retail Generics Business to Dr Reddy's Laboratories
Proposed Sale of Retail Generics Business to Dr Reddy’s Laboratories US$90 million upfront cash consideration, US$20-30 million receipt for working capital and up to US$15 Million in earnouts ● Sale of portfolio of commercial, pipeline and approved non-marketed products for upfront cash consideratio
Slide 5: 1HFY23 Strategic, Operational and Financial Highlights
1HFY23 Strategic, Operational and Financial Highlights A period of significant structural change to reset Mayne Pharma for profitable growth
Slide 6: 1HFY23 Strategic, Operational and Financial Highlights
1HFY23 Strategic, Operational and Financial Highlights A period of significant structural change to reset Mayne Pharma for profitable growth ● Cash consideration of US$475m (~A$722.5m) Sale of Metrics ● Transaction closed on 4 October 2022 Contract Service ● 5 year supply agreement with acquirer to
Slide 7: 1HFY23 Strategic, Operational and Financial Highlights
1HFY23 Strategic, Operational and Financial Highlights Increasing momentum in Branded Products Division and difficult trading across Portfolio Products Division • The company has increased A$ million 1HFY23 2HFY22 1HFY22 1HFY23 2HFY22 1HFY22 NEXTSTELLIS® investment Revenue Gross profit • 1HFY23 derm
Slide 8: Branded Products Division
1HFY23 Strategic, Operational and Financial Highlights Branded Products Division ● Continued NEXTSTELLIS® momentum with refreshed sales leadership and marketing strategies helping to deliver month on month growth ● ~ 50% increase in monthly cycle count from 13.1k (Jan) to 20.9k (Dec) and ~ 50% incre
Slide 9: Key Observations, Actions And Priorities
Key Observations, Actions And Priorities Organisational alignment to significantly improve sales, commercial and operating performance ● Our strategy is robust and provides significant scope for profitable growth ● Reduce complexity and right size our cost structure ● Ensure our people and culture a
Slide 10: Trading Update and FY23 Outlook
Trading Update and FY23 Outlook Encouraging start to 2HFY23 with Dermatology improvement and growing momentum in Women’s Health Branded Products Division ● Week on week records for NEXTSTELLIS® through February ● Salesforce expansion via select TMXD hires, with updated targeting, refreshed messaging
Slide 11: Financial and Operational Results
Financial and Operational Results Restatement of FY22 US Dermatology Financial Results
Slide 12: Restatement of FY22 US Dermatology Financial Results
Restatement of FY22 US Dermatology Financial Results Implementing a new methodology to determine Co-Pay accrual liability ● 2022 AGM Trading Update highlighted negative net Dermatology sales July – Oct 22 ● Elevated sales in June 22 created excess channel inventory levels (associated with new produc
Slide 13: Restatement of FY22 U.S. Dermatology Financial Results
Restatement of FY22 U.S. Dermatology Financial Results Summary of adjustments to FY22 financial metrics 13
Slide 14: 1HFY23 Financial and Operational Results
1HFY23 Financial and Operational Results Group Financial Performance Overview
Slide 15: Group Financial Overview
Group Financial Overview A$million1 1H23 1H22 1H23 v 1H22 Reported Revenue 101.2 150.4 (33%) Reported Gross Profit 7.9 64.6 (88%) Reported EBITDA (99.2) 66.1 (250%) Reported Net Loss After Tax (129.2) (208.4) (38%) Underlying EBITDA2 (53.1) 63.5 (184%) Underlying EBITDA (excl. NEXTSTELLIS®)3 (25.9)
Slide 16: Group Financial Overview
Group Financial Overview Reconciliation of Reported to Underlying Profit and Loss 16
Slide 17: Group Financial Overview
Group Financial Overview Reconciliation of Reported to Underlying EBITDA EBITDA adjustments A$ million1 H1FY23 Comment Reported EBITDA (99.2) Earn-out assessment (0.3) Non-cash debit arising from an increase in fair value of earn-out liabilities Restructuring 9.3 Personnel restructuring charges & re
Slide 18: Consolidated cash flow – EBITDA to cash reconciliation
Consolidated cash flow – EBITDA to cash reconciliation A$ million H1 FY 2023 Reported EBITDA attributable to members1 (99.2) Share-based expense (non-cash) 5.0 Movement in provisions (non-cash) 3.3 Total working capital movements 49.9 Tax paid (3.8) Discontinued operations (10.6) Loss on INTI (non-c
Slide 19: Group Financial Overview
Group Financial Overview Consolidated balance sheet A$ million 31 Dec 2022 30 Jun 2022 Change • Reduction in PP&E related to sale of MCS. (Restated) • Intangibles recognised on TXMD assets of Cash 175.5 96.7 78.8 $380m. Inventory 125.3 108.9 16.4 • Payables increase includes $45m attributable to Rec
Slide 20: Adjusting cost base for executing on accretive growth
Adjusting cost base for executing on accretive growth Operating expenses1 ● Continued investment to support growth of NEXTSTELLIS® in US market ● Admin expenses increase is attributable to increase in IT A$million 1H23 2H22 1H22 NEXTSTELLIS® marketing & distribution 35.7 26.6 21.7 expenses, professi
Slide 21: Segmental Financial Performance
Financial and Operational Results Segmental Financial Performance
Slide 22: Branded Products Division (BPD)
Branded Products Division (BPD) NEXTSTELLIS® ● NEXTSTELLIS® net revenues were US$7.1m A$million 1H23 2H22 1H22 Reported revenue 13.4 6.3 4.2 - Up 122% on 2HFY22 (US$3.9m) Reported Gross Profit 10.7 5.1 3.3 - Up 545% on 1HFY22 (US$6.1m) Gross Profit % 80% 81% 79% ● NEXTSTELLIS® direct operating expen
Slide 23: Portfolio Products Division (PPD)
Portfolio Products Division (PPD) Dermatology ● Revenue and contribution materially impacted by inventory A$million 1H23 2H22 1H22 work through following 2HFY22 sales activities Reported revenue 59.1 125.6 118.6 - 1HFY23 Revenue of US$7.5m down 80% on 2HFY22 sales Reported Gross Profit (12.7) 26.5 5
Slide 24: Portfolio Products Division (PPD)
Portfolio Products Division (PPD) Dermatology performance impacted by 2H22 sales strategy and competitive pressure Dermatology • Competitive pressures impacted price across certain products with ~12% gross price reduction in 1HFY23 vs 2HFY22. Dermatology unit sales 160000 • Gross Margin decline in 1
Slide 25: Restatement of FY22 U.S. Dermatology Financial Results
Restatement of FY22 U.S. Dermatology Financial Results MYX Dermatology - Sales and GTN % 60,000,000 180% 50,000,000 158% 160% 144% 140% 40,000,000 120% 30,000,000 100% 96% 20,000,000 87% 87% 86% 80% 81% 79% 79% 78% 80% 77% 77% 75% 77% 75% 72% 74% 71% 73% 73% 10,000,000 66% 67% 65% 67% 66% 65% 64% 61
Slide 26: International
International ● International benefited from growth in all business lines A$million 1H23 2H22 1H22 - CDMO revenue up 27% on FY21 Reported revenue 27.6 26.8 27.6 - Australian product revenue up 14% on FY21 Reported Gross Profit 8.9 8.8 8.8 - International product revenue up 62% on FY21 Gross Profit %
Slide 27: Business Overview and Strategy
Business Overview and Strategy
Slide 28: Our Simple and Clear Strategy across 3 attractive businesses
Business Overview and Strategy Our Simple and Clear Strategy to commercialise sales opportunities across 3 attractive businesses U.S. Women’s Health U.S. Dermatology International • Distributes medically • Markets portfolio of • Australian product • NEXTSTELLIS® (E4/DRSP) oral differentiated special
Slide 29: Our US Disintermediation Strategy
Business Overview and Strategy Our US Disintermediation Strategy seeks to tackle Patient and Provider pain points Consumer / patient Prescriber / HCP • Rising costs and quality of • Less choice in patient treatment insurance coverage is decreasing • Greater administration burden • Lack of trust in o
Slide 30: The Mayne Pharma Solution
The Mayne Pharma Solution ● Mayne Pharma boasts a unique mix of capabilities across the supply chain, including drug sourcing, pharmacy network, and sales access Drug Sourcing Pharmacy Network Customer Coverage • Strong Rx portfolio covering 1/3 of • Adelaide Apothecary for cash-pay • 130+ territory
Slide 31: Strategic Collaboration with GoodRx
Business Overview and Strategy Strategic Collaboration with GoodRx ● GoodRx is a leading U.S. digital direct-to- consumer (DTC) healthcare platform ● Consumer reach includes ~ 6m monthly active customers Direct-to- ● >825,000 HCPs have used the platform since June Consumer 2021 Campaign ● Mayne Phar
Slide 32: Overview of the US Women's Health Market
Business Overview and Strategy Overview of the US Women’s Health Market
Slide 33: Overview of the US Women's Health Market
Overview of the US Women’s Health Market A highly attractive market that offers attractive organic and inorganic growth opportunities ● Women’s Health offers a compelling opportunity for strong and profitable growth ● Favourable regulatory settings support increased access and affordability to contr
Slide 34: TXMD Acquisition: Accelerating Our Vision to Become a Leader in Women's Health
TXMD Acquisition: Accelerating Our Vision to Become a Leader in Women’s Health Prenatal Vitamins CONTRACEPTION/ DYSPAREUNIA CONTRACEPTION PRENATAL FAMILY PLANNING - VASOMOTOR (Vulvar & Vaginal CARE PERIMENOPAUSE SYMPTOMS Atrophy) REPRODUCTIVE HEALTH MENOPAUSE MANAGEMENT 34
Slide 35: Building a leading US Women's Health Business
Building a leading US Women’s Health Business TXMD Portfolio Prenatal Vitamins REPRODUCTIVE HEALTH MENOPAUSE MANAGEMENT PRENATAL Infrastructure in Place ● Experienced sales team of 100 able to reach our target customers ● Reducing access barriers through our unique approach ● Able to leverage the fu
Slide 36: Overview of the U.S. Women's Health Market
US Women’s Health Overview of the U.S. Women’s Health Market Growth opportunities and initiatives to drive financial performance ● Continue to drive HCP sales performance with targeting and improved brand messaging in line with our portfolio brand strategies to leverage our expanded national footpri
Slide 37: Overview of the US Dermatology Market
Business Overview and Strategy Overview of the US Dermatology Market
Slide 38: Overview of the US Dermatology Market
Overview of the US Dermatology Market A highly attractive market that offers attractive organic and inorganic growth opportunities ● U.S. Dermatology is estimated to be ~ US$10 billion with a forecast annual growth rate of 7% -9% over the coming decade Attractive ● Growth in dermatology is driven by
Slide 39: Overview of the US Dermatology Market
Overview of the US Dermatology Market Building market leadership and scale with a pipeline of new generic products with renewed sales discipline ● Build on strength of market position with a strong and profitable pipeline of new products to meet broader patient needs ● Planned launch of DORYX MPC® 6
Slide 40: International
rand pharma International
Slide 41: Overview of the International Business Opportunity
Overview of the International Business Opportunity A leading Australian-based specialty pharmaceutical and CDMO1 business servicing international markets Concept to ● Single site for development and commercial manufacture, full-scale FDA-certified plant commercialisation ● Australia’s favourable reg
Slide 42: International Historical Growth Now Flat
International International Historical Growth Now Flat ● Diversified CDMO and specialty pharmaceutical International historical revenue business (A$m) ● Largest Australian owned full service solid oral dose 54.4 plant manufacturing TGA, MHRA, and FDA registered 42.4 42.8 pharmaceuticals 40.7 36.8 34
Slide 43: Accelerating International Growth and Profitability
International Accelerating International Growth and Profitability 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 CDMO business ● Double di
Slide 44: International Key Actions
International International Key Actions ● Appointed new General Manager, Grant Swart, a turn-around operational leader ● Continued growth of Australian based specialty pharmaceutical and CDMO business ● Advanced pipeline of new product launches including NEXTSTELLIS® oral contraceptive in Australia
Slide 45: Summary and Outlook
rand pharma Summary and Outlook
Slide 46: FY22 Actuals – Adjusted for Structural Changes, Restatement
FY22 Actuals – Adjusted for Structural Changes, Restatement * Mayne Pharma FY22 Results **** TXMD H2 FY21, H1 FY22 Results Retail Group less: ** TXMD Mayne Group - FY Restmt Generics MCS, FY22 pro OPEX TXMD go 2022 A$ millions BPD PPD Intl MCS Group FY 2022 therein restmt, RGx forma additions forwar
Slide 47: Strategic Priorities for FY23 & FY24 to Drive Shareholder Value
Strategic Priorities for FY23 & FY24 to Drive Shareholder Value Better Derm Assets & # 1 Priority, B/E ASAP Deliver EBITDA Positive WH Improve Margin & Access WH roll up Accelerate AU Growth Successfully Deliver on the full Successfully US Broaden portfolio Continued commercialiseWomen’s Health comm
Slide 48: Q&A
Q&A You deserve tomorrow. 48
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