Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Investor Presentation (August 2022)
34 slides from Mayne Pharma's investor presentation, Aug 26, 2022
Slide 1: FY22 Results Presentation
Mayne Pharma Group Limited FY22 Results Presentation 26 August 2022 Scott Richards, CEO Peter Paltoglou, CFO
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 Metrics Contract Services
Proposed sale of Metrics Contract Services
Slide 4: Transaction summary
Transaction summary Proposed sale of Metrics Contract Services (Metrics) for US$475m to Catalent ● Cash consideration of US$475m (~A$679m), with estimated net proceeds of US$445m (A$636m) after transaction and restructuring costs and customary closing adjustments Overview ● Compelling valuation at ~
Slide 5: Strategic rationale
Strategic rationale 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 2 management initiatives More focused: Creating a more focused sp
Slide 6: Capital management
Capital management ● Mayne Pharma expects to receive approximately US$445m (A$636m) of net proceeds after transaction and restructuring costs ● At completion, Mayne Pharma will repay the syndicated debt facility – A$342m outstanding at 30 June 2022 ● Mayne Pharma intends to maintain a strong balance
Slide 7: Strategy update
S pharma Strategy update
Slide 8: Mayne Pharma Tomorrow
Mayne Pharma Tomorrow Driving Growth in Specialty Pharmaceuticals Expanding the International Footprint US women’s health US dermatology International ● Accelerating growth of NEXTSTELLIS® ● One of the leading dermatology ● Continued growth of Australian based oral contraceptive offerings in the US
Slide 9: Approximately 80% of group gross profit in non US retail generic categories
Approximately 80% of group gross profit in non US retail generic categories Reported gross profit (excl. depreciation) by type FY22 FY22 (excluding Metrics)1 18% 20% 4% 38% 7% 12% 56% 17% 28% Branded Products International Metrics US dermatology2 US retail generics2 1. Adjusted for illustrative inte
Slide 10: NEXTSTELLIS oral contraceptive: US highlights
US women’s health NEXTSTELLIS® oral contraceptive: US highlights ● ~70,000 cycles in FY22 with 35,000 cycles in 4QFY22 up 69% from 3QFY221 ● 4,760 NEXTSTELLIS new writers since launch; averaging 100 new writers / week and ~1,000 return writers on a weekly basis ● Productivity / writer is increasing
Slide 11: NEXTSTELLIS: cumulative US writers
US women’s health NEXTSTELLIS®: cumulative US writers 4,754 4,348 3,855 3,402 2,960 2,480 2,105 1,700 1,311 937 647 353 135 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 >85% of HCPs who wrote NEXTSTELLIS® in 1HFY22 have returned in 2HFY22 11 Source: IQVI
Slide 12: NEXTSTELLIS US prescriptions
US women’s health NEXTSTELLIS® US prescriptions NEXTSTELLIS® weekly performance metrics NEXTSTELLIS® monthly performance metrics 4,000 16,000 3,500 14,000 3,000 12,000 2,500 10,000 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 - Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22 Aug-22 Jul-21 Sep-21
Slide 13: US direct-to-consumer campaign launched
US women’s health US direct-to-consumer (DTC) campaign launched www.nextstellis.com Facebook Instagram Game/ Quiz Since launch of the DTC campaign, monthly NEXTSTELLIS.com users have increased 200% to 37,0001 13 1. June/July 2022 average monthly NEXTSTELLIS.com users versus April/May 2022
Slide 14: Strategic collaboration with GoodRx
US women’s health Strategic collaboration with GoodRx ● GoodRx is a leading US consumer-focused digital healthcare platform - Reach includes ~6m monthly active consumers and >825,000 HCPs have used Direct-to- the platform since June 2021 consumer campaign ● Mayne Pharma and GoodRx delivering an enha
Slide 15: Affordable Care Act (ACA) compliance
US women’s health Affordable Care Act (ACA) compliance ● In July 2022, the US tri-agencies, Department of Labor, Potential impact on NEXTSTELLIS® Health and Human Services and Treasury issued new guidance that contraceptive coverage is guaranteed at Greater patient access no additional cost under th
Slide 16: Record US dermatology performance driven by new product launches
US dermatology Record US dermatology performance driven by new product launches ● Launched 12 new dermatology products in FY22 contributing Dermatology financial performance2 strong growth in revenue (up 77%) and direct contribution (up (US$m) 88%) on pcp in USD terms 84 ● Direct contribution margin
Slide 17: International delivering growth across all business lines
International International delivering growth across all business lines ● Diversified CDMO and specialty pharmaceutical International historical revenue business (A$m) 54.4 ● Largest Australian owned full service solid oral dose + 10% plant manufacturing TGA and FDA registered CAGR 42.8 pharmaceutic
Slide 18: NEXTSTELLIS Australian commercial launch commenced
International NEXTSTELLIS® Australian commercial launch commenced ● Shipment to trade in July 2022 ● Active sample program to HCPs commenced in August 2022 ● Expanded national GP/specialist sales team are now educating healthcare professionals on the unique characteristics of E4 and NEXTSTELLIS® ● N
Slide 19: Marginalisation of consumer and prescriber in the US pharma market
End-to-end solutions Marginalisation of consumer and prescriber in the US pharma market Consumer / patient Prescriber / HCP • Rising costs • Less choice in patient treatment • Quality of insurance coverage is • Greater administration decreasing • Seeking lower cost, access and • Seeking cost effecti
Slide 20: End-to-end solution that effectively solves key pain points for patients
End-to-end solutions End-to-end solution that effectively solves key pain points for patients Real-time insurance Quality and Smooth digital Convenient Trusted HCPs coverage and affordable medicines experience fulfilment processing Fear of high price of Lack of trust in online Uncertainty on Struggl
Slide 21: Financial results
S pharma Financial results
Slide 22: Financial overview
Financial overview1 A$million Change 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% ● G
Slide 23: Adjustments to earnings – FY22
Adjustments to earnings1 – FY22 EBITDA adjustments A$million FY22 FY21 Comments Reported 87.4 66.1 Non-cash credit arising from a decrease in the fair value of earn-out Earn-out revaluation (81.6) (20.6) liabilities of which A$70.6m relates to NEXTSTELLIS® Sale of land (3.7) - Gain on the sale of su
Slide 24: Reported to underlying earnings attributable to members
Reported to underlying earnings attributable to members Underlying excluding Reported Earn-out Discontinued Supply chain Transaction Underlying NEXTSTELLI A$million FY22 reassessment Restructuring products disruption Impairment Litigation Sale of land INTI expenses FY22 NEXTSTELLIS1 S Revenue 424.8
Slide 25: Branded Products (BPD)
Branded Products (BPD) NEXTSTELLIS® Change FY22 v A$million FY22 FY21 FY21 ● NEXTSTELLIS® revenues were US$4.2m, up 50% on FY21 Reported revenue 10.6 7.5 40% - 2HFY22 revenues were US$3.2m, up 200% on 1HFY22 Reported Gross Profit 8.4 6.5 29% - Inventory stocking in June 2021 now normalised Gross Pro
Slide 26: Portfolio Products (PPD)
Portfolio Products (PPD) Dermatology Change FY22 v A$million FY22 FY21 FY21 ● Record dermatology revenue and earnings Reported revenue 269.1 268.4 0% - Revenue up 77% on FY21 to US$84m Reported Gross Profit 97.2 120.4 (19%) - Direct contribution up 88% to US$34m Gross Profit % 36% 45% - Benefited fr
Slide 27: International
International ● International benefited from growth in all business lines Change FY22 v A$million FY22 FY21 FY21 - CDMO revenue up 27% on FY21 Reported revenue 54.4 42.8 27% - Australian product revenue up 14% on FY21 Reported Gross Profit 17.7 13.2 33% - International product revenue up 62% on FY21
Slide 28: Metrics Contract Services (MCS or Metrics)
Metrics Contract Services (MCS or Metrics) ● In USD terms, Metrics revenue was US$66m, up 7% on FY21 Change FY22 v driven largely by new formulation development and A$million FY22 FY21 FY21 commercial manufacturing revenue Reported revenue 90.8 82.1 11% ● Expansion of margins reflecting cost control
Slide 29: Expanding cost base due to US NEXTSTELLIS launch
Expanding cost base due to US NEXTSTELLIS® launch Operating expenses1 ● Operating expenses up A$47m on FY21 due to A$million FY22 FY21 Change $ Change % the US launch of NEXTSTELLIS® NEXTSTELLIS® marketing 48.3 1.4 46.9 3350% & distribution Other marketing & 56.3 56.3 - 0% distribution Marketing & d
Slide 30: Capital structure
Capital structure Key financial metrics ● Dual currency debt facility - US$148m, 5 year revolving facility, matures November As at As at As at 2023 A$million 30 Jun 22 31 Dec 21 30 Jun 21 - US$100m, 4 year bullet facility, matures November 2024 Syndicated facility 341.6 330.6 298.8 - US$65m, 364 day
Slide 31: Consolidated cash flow – EBITDA to cash reconciliation
Consolidated cash flow – EBITDA to cash reconciliation Year ending Change ● Cash flow working capital movements based on average AUD/USD exchange rate A$million 30 Jun 22 30 Jun 21 for the period whereas the December Consolidated EBITDA (100% INTI) 87.3 65.8 21.5 balance sheet balances based on clos
Slide 32: Consolidated balance sheet position
Consolidated balance sheet position As at As at Change A$million 30 Jun 22 30 Jun 21 $m Cash 96.7 98.0 (1.3) Inventory 108.9 102.5 6.4 Receivables 268.2 183.3 84.9 PP&E 218.4 212.5 5.9 Intangibles & goodwill 427.5 636.2 (208.6) Income tax receivable 14.1 20.3 (6.2) Deferred tax assets 118.5 172.2 (5
Slide 33: Historical reported segment information
Historical reported segment information1 Reported results (A$m) FY22 FY21 FY22 FY21 Revenue Gross profit - Dermatology 116.0 63.8 - Dermatology 71.2 52.2 - Retail generics 153.1 204.6 - Retail generics 26.0 68.3 Portfolio Products 269.1 268.4 Portfolio Products 97.2 120.4 Branded Products 10.6 7.5 B
Slide 34: You deserve tomorrow.
Q&A You deserve tomorrow. 34
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