Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Corporate Update (May 2023)
31 slides from Mayne Pharma's corporate update, May 10, 2023
Slide 1: May 2023 Market Update
Mayne Pharma Group Limited May 2023 Market Update Shawn Patrick O’Brien, CEO Aaron Gray, 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: Agenda
Agenda ● Introduction and highlights of the last 7 months ● Women’s Health / BPD Update ● Dermatology / PPD Update ● International Update ● Business Transformation; Costs and Capital Management ● Outlook ● Questions 3
Slide 4: Strategic Highlights over the last 7 months
Strategic Highlights over the last 7 months A period of significant structural change to reset Mayne Pharma for profitable growth
Slide 5: Strategic, Operational and Financial Highlights
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 ensure c
Slide 6: Key Observations, Actions And Priorities
Key Observations, Actions And Priorities Organisational alignment to significantly improve sales, commercial and operating performance ● New leadership focused on US women’s health and dermatology and delivering the potential of International ● Our strategy is focused and provides significant scope
Slide 7: Strategic priorities for FY23 & FY24 to drive shareholder value
Strategic priorities for FY23 & FY24 to drive shareholder value # 1 Priority, B/E ASAP Deliver EBITDA Positive WH Improve Margin & Access Secure accretive assets Accelerate AU Growth Successfully Successfully Deliver on the full US channel Broaden portfolio Continued commercialise implement new Wome
Slide 8: Women’s Health / BPD Update
Agenda ● Introduction and highlights of the last 7 months ● Womens Health / BPD Update ● Dermatology / PPD Update ● International Update ● Business Transformation; Costs and Capital Management ● Outlook ● Questions 8
Slide 9: Building a leading US Women’s Health Business (BPD)
Building a leading US Women’s Health Business (BPD) Acquired Portfolio Prenatal Vitamins REPRODUCTIVE HEALTH PRENATAL MENOPAUSE MANAGEMENT Infrastructure in Place ● Experienced sales team of 100 (up from 86) able to reach our target customers ● Reducing access barriers through our unique approach ●
Slide 10: NEXTSTELLIS® growth is accelerating
NEXTSTELLIS® growth is accelerating ● NEXTSTELLIS® has continued to achieve solid growth during 2H-FY23 to date driven by access improvements (Co-Pay) and new targeting strategy implemented in December ● Step change in sales expected during Q4-FY23 as a result of the Q3-FY23 commercial initiatives s
Slide 11: FY23 Q3 NEXTSTELLIS® Field Activity up dramatically over Q2
FY23 Q3 NEXTSTELLIS® Field Activity up dramatically over Q2 11 NRx totals based on IQVIA Exponent Data adjusted for non-reporting pharmacies through 31Mar23
Slide 12: March 2023 NRx up 20% over February 2023
March 2023 NRx up 20 % over February 2023 NEXTSTELLIS® NRx 8000 7000 6,873 6000 5,708 5,423 5000 5,011 4,638 4000 4,094 3,962 4,178 3,598 3,352 3,175 3000 2,164 2,253 2000 1,703 1,491 1,265 1000 829 582 294 421 0 19 121 ● All time high for NRx 9 out of the last 16 weeks, 4 of 7 weeks without all-tim
Slide 13: NEXTSTELLIS® monthly cycles up 27% in March over December
NEXTSTELLIS® monthly cycles up 27% in March over December ● 61% growth in cycles H2 to date first 17 Weeks of H1 vs first 17 Weeks of H2 ● Streaming television ad launched Feb 2023 ● Beginning to see results of retargeting, refocus 13 NRx totals based on IQVIA Rapid Weekly adjusted for non-reporting
Slide 14: NEXTSTELLIS® Website traffic increasing with DTC campaign
NEXTSTELLIS® Website traffic increasing with DTC campaign MONTHLY NEXTSTELLIS.COM U.S. USERS 2023 vs. 2022 200,000 214,000 Projected May website traffic 180,000 176,243 173,419 160,000 140,000 147,857 120,000 TV LAUNCH 13/2 100,000 109,210 80,000 60,000 40,000 48,487 20,000 - January February March
Slide 15: Women’s Health Acquisition: Accelerating Our Vision to Become a Leader
Women’s Health Acquisition: Accelerating Our Vision to Become a Leader Prenatal Vitamins CONTRACEPTION/ DYSPAREUNIA CONTRACEPTION PRENATAL FAMILY PLANNING - VASOMOTOR (Vulvar & Vaginal CARE PERIMENOPAUSE SYMPTOMS Atrophy) REPRODUCTIVE HEALTH MENOPAUSE MANAGEMENT 15
Slide 16: Acquired Women's Health Branded Portfolio adding significant value
Acquired Women's Health Branded Portfolio adding significant value ● Portfolio has performed solidly with no change to overall business acquisition case expectations ● Initial launch date 12 Jan, channel inventory ~45 days. Outstanding rebate claims impacted a clean integration of the portfolio. Mec
Slide 17: Unit sales of acquired assets on track
Unit sales of acquired assets on track ● Q3-FY23 net sales exceeded, prior calendar Q4-2023 reported sales ● Q3 FY23 impacted by channel inventory in integration ● No change to business expectations 17 Unit totals based on IQVIA Rapid Weekly adjusted for non-reporting pharmacies through 28Apr23
Slide 18: Mayne Pharma is supporting acquired brands with targeted DTC
Mayne Pharma is supporting acquired brands with targeted DTC CONTRACEPTION : ANNOVERA MENOPAUSE : BIJUVA & IMVEXXY Annovera.com U.S. Users March – MTD May, 2023 Bijuva.com and Imvexxy.com Users March – MTD May, 2023 5,000 2,500 4,500 4,000 2,000 3,500 3,000 1,500 2,500 2,000 1,000 1,500 1,000 500 50
Slide 19: Dermatology / PPD Update
Agenda ● Introduction and highlights of the last 7 months ● Womens Health / BPD Update ● Dermatology / PPD Update ● International Update ● Business Transformation; Costs and Capital Management ● Outlook ● Questions 19
Slide 20: Overview of the US Dermatology Market
Overview of the US Dermatology Market Building market leadership and scale with pipeline of new products ● Build on strength of market position with a strong and profitable pipeline of new products to meet broader patient needs ● Q3FY23 launch of DORYX MPC® 60 mg tablets and Galderma’s authorized gO
Slide 21: Dermatology – business performance improving
Dermatology – business performance improving; delivering on positive contribution margin ● Improving momentum following 1H-FY23 channel inventory issues which resulted in recalibration of pricing, GTN and lower volumes in some products ● GTN and pricing has stabilised across key products, as expecte
Slide 22: Dermatology Units growing and GTN stabilised
Dermatology Units growing and GTN stabilised ● Growth expected from Q3-FY23 launches ● Gross sales increasing since August - DORYX® MPC 60 February 2023 ● Net Sales growth since October - gORACEA® March 2023 ● GTN stabilised in Q3 22
Slide 23: International Update
Agenda ● Introduction and highlights of the last 7 months ● Womens Health / BPD Update ● Dermatology / PPD Update ●International Update ● Business Transformation; Costs and Capital Management ● Outlook ● Questions 23
Slide 24: International Showing Encouraging Business Progress
International Showing Encouraging Business Progress ● Good growth in international sales as product availability increases following early improvement in manufacturing and supply chain performance 10% ● KAPANOL® /KADIAN® (morphine) market expansion to treat Opioid Substitution Therapy (OST); CDMO -
Slide 25: International Improvement Initiatives
International Improvement Initiatives Manufacturing strategy focused on cost efficiency and reliable supply at the best quality • Organisational design review completed and implemented, focus on key roles in supply chain • Implementation of lean practices and metrics underway to unlock existing capa
Slide 26: Business Transformation; Costs and Capital Management
Agenda ● Introduction and highlights of the last 7 months ● Womens Health / BPD Update ● Dermatology / PPD Update ● International Update ● Business Transformation; Costs and Capital Management ● Outlook ● Questions 26
Slide 27: Costs – good progress and continued focus
Costs – good progress and continued focus ● Progress towards targeted 10-15% of admin cost reductions (excl RGx): - Reductions in office footprints, senior leadership, subscriptions/systems total 9% - Goal remains to save where possible and invest where appropriate. Areas of OPEX investment in FY23
Slide 28: Capital management
Capital management The Company has completed 3 major transactions over the last 6 months and plans to continue to hold a conservative balance sheet while completing this stage of the transformation. ● Current company net cash circa A$135.8m as of April 30, 2023 - A$239m less A$61m receivable facilit
Slide 29: Strategic priorities for FY23 & FY24 to drive shareholder value
Strategic priorities for FY23 & FY24 to drive shareholder value # 1 Priority, B/E ASAP Deliver EBITDA Positive WH Improve Margin & Access Secure accretive assets Accelerate AU Growth Successfully Successfully Deliver on the full US channel Broaden portfolio Continued commercialise implement new Wome
Slide 30: Outlook
Outlook ● FY23 has been one of significant business transition with the completion of the sale of MCS and Retail Generics and the acquisition of the TXMD portfolio. Comparison of prior period statutory accounts will be impacted by the treatment of businesses disposed as discontinued operations. Acco
Slide 31: Q&A
Q&A You deserve tomorrow. 31