Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — H1 FY2016 Earnings Presentation
18 slides from Mayne Pharma's earnings presentation, Feb 26, 2016
Slide 1: 1HFY16 Results Presentation
For personal use only Mayne Pharma Group Limited 1HFY16 Results Presentation 26 February 2016 Scott Richards, Chief Executive Officer Mark Cansdale, Group CFO
Slide 2: Disclaimer
Disclaimer For personal use only ● 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 inve
Slide 3: Executive summary
Executive summary For personal use only ● Delivered a strong financial result with revenue, EBITDA, NPAT and operating cashflow up significantly on the prior corresponding period (pcp) driven by the growth in generic products and contract services, foreign Strong exchange benefits and the transforma
Slide 4: 1HFY16 key financials
1HFY16 key financials1 For personal use only Reported basis Reported basis Reported basis Revenue EBITDA NPAT A$127.3m, +114% A$40.7m, +201% A$19.2m, +380% Reported basis Underlying basis Underlying basis Gross margin EBITDA2 NPAT A$80.4m, +160% A$43.3m, +197% A$20.4m, +278% Reported bas
Slide 5: Mayne Pharma's new segment structure
Mayne Pharma’s new segment structure For personal use only Generic Products (GPD) Specialty Brands (SBD) Metrics Contract Services (MCS) Mayne Pharma International (MPI) Description Develops, manufactures, markets Markets and distributes specialty Provides contract pharmaceutical Develops, manufactu
Slide 6: Generic Products Division (GPD)
Generic Products Division (GPD) For personal use only ● GPD revenue up 33% on pcp to US$32.3m A$million 1HFY16 1HFY15 Change 1HFY16 v ● Directly distributed products now represent 83% of 1HFY15 GPD revenue up from 72% in the pcp and grew 52% on pcp to US$26.7m driven by BAC, oxycodone, Revenue 44.6
Slide 7: Specialty Brands Division (SBD)
Specialty Brands Division (SBD) For personal use only ● SBD revenue was US$31.4m for the 1HFY16 A$million 1HFY16 1HFY15 Change 1HFY16 v ● Monthly Doryx™ EBITDA exceeded the US$2.7m 1HFY15 guidance given in February 2015 Revenue 43.4 1.2 Nm ● Doryx™ franchise averaged >5,000 TRx / week and Gross Prof
Slide 8: Metrics Contract Services (MCS)
Metrics Contract Services (MCS) For personal use only ● MCS revenue was US$17.0m up 26% on pcp A$million 1HFY16 1HFY15 Change benefiting from a more diversified customer base 1HFY16 v and a greater proportion of later stage, higher value 1HFY15 development work Revenue 23.5 15.1 55.4% ● Contract ser
Slide 9: Mayne Pharma International (MPI)
Mayne Pharma International (MPI) For personal use only ● Whilst MPI overall sales were flat, Australian sales A$million 1HFY16 1HFY15 Change were up 11% to A$12.9m and international sales 1HFY16 v were down 34% to A$2.8m 1HFY15 ● Australian sales growth was driven by: Revenue 15.8 15.9 -1.0% - Launc
Slide 10: Development pipeline expected to drive long term sustainable growth
Development pipeline expected to drive long term sustainable growth For personal use only ● R&D spend was A$14.2m up 64% on pcp as the Market value of US filed pipeline (US$m)1 company focused on higher value and high barrier to 1,200 entry product opportunities in the US 960 1,000 ● 35+ pipeline pr
Slide 11: Business development activities delivering value to both on-market portfolio and pipeline
Business development activities delivering value to both on-market portfolio and pipeline For personal use only Date Transaction Country Comments On- Feb 2015 Acquired US Doryx™ assets from Actavis US Exceeded earnings guidance in market 1HFY16 Acquired methamphetamine tablet and Exceeded earnings g
Slide 12: Outlook
Outlook For personal use only Generic Products ● Growth in GPD driven by recent product launches, price optimisation and continued market Division (GPD) share gains ● Upsides will include FDA approvals and business development activity Specialty Brands ● SBD team has the strategies in place to prote
Slide 13: Appendix
For personal use only Appendix
Slide 14: Earnings comparison – attributable to members
Earnings comparison – attributable to members For personal use only ● Gross profit margins were significantly Half year ending Change stronger than the pcp driven by inclusion of the Doryx™ acquisition A$million 31 Dec 15 31 Dec 14 $m ● Underlying adjustments made to Revenue 127.3 59.5 67.8 1HFY16 E
Slide 15: Balance Sheet position
Balance Sheet position ● For personal use only Growth in payables and receivables reflect As at As at Change the growing Doryx™ franchise with A$million 31 Dec 15 30 Jun 15 $m receivables reported on a gross sales basis Cash 49.7 59.2 (9.5) Inventory 28.6 22.4 6.2 ● Net debt increased by $12.5m ― A$
Slide 16: Cash flow
Cash flow For personal use only Half year ending Change ● Strong EBITDA to cash conversion A$million 31 Dec 15 31 Dec 14 $m ● Net operating cash flow pre tax and interest was A$44.4m up A$33.7m EBITDA - underlying 43.3 14.6 28.7 from 1HFY15 WC movements & other 1.1 (3.9) 5.0 ● Notable cashflows duri
Slide 17: Reconciliation of reported NPAT to underlying NPAT attributable to members
Reconciliation of reported NPAT to underlying NPAT attributable to members For personal use only A$million 1HFY16 1HFY15 NPAT - Reported 19.2 4.0 Remove impact of HedgePath 1.3 0.8 Distributor settlement 4.7 - SBD set up costs - 0.5 Impact of earn-out (4.8) 0.1 NPAT - Underlying 20.4 5.4 17
Slide 18: 1HFY16 Profit & Loss impact of HedgePath Pharmaceuticals
1HFY16 Profit & Loss impact of HedgePath Pharmaceuticals For personal use only A$million HPPI Mayne (excl. HedgePath) Total Revenue - 127.3 127.3 EBITDA – underlying - 43.3 43.3 EBITDA – reported (1.2) 40.7 39.5 NPAT – underlying - 20.4 20.4 NPAT – reported (1.3) 19.2 17.9 Depreciation & Amortisatio