Slide 1: FY12 Results Presentation
For personal use only Mayne Pharma Group Limited FY12 Results Presentation 21st August 2012
Slide 2: Executive summary
For personal use only Executive summary ● Double digit revenue growth across the portfolio ● Strong results delivered EBITDA $14.3m, up 81%; NPAT $6.2m, up 265% Underlying EBITDA $11.5m, up 25% ● Cost savings from operational restructure improved margins and earnings growth ● Robust net operatin
Slide 3: Earnings comparison
Earnings comparison Change For personal use only $ millions FY12 FY11 $m % Sales revenue 51.9 47.0 4.9 10.4 Gross margin 22.6 20.1 2.5 12.4 EBITDA – Underlying 11.5 9.2 2.3 25.0 Adjustments 2.8 (1.3) 4.1 Nm EBITDA 14.3 7.9 6.4 81.0 Depreciation (1.8) (1.8) 0.0 0.0 EBITA 12.5 6.1 6.4 104.9 Amortisati
Slide 4: Key features of the financial result
For personal use only Key features of the financial result ● Expanded sales across all segments of the portfolio US Doryx® sales up 10.7% despite strong AUD and reduced shipments following the launch of a generic Sales of non-US Doryx® products represented 61% of the portfolio, up 10.5% ● Averag
Slide 5: Balance sheet position
Balance sheet position Change For personal use only As at As at $ millions 30/06/12 30/6/11 $m % Cash 11.6 5.8 5.8 100.0 Inventory & receivables 11.1 12.1 (1.0) (8.3) PP&E 22.2 21.5 0.7 3.2 Intangibles 4.2 8.2 (4.0) (48.8) Other assets 4.8 6.1 (1.3) (21.3) Total assets 53.9 53.7 0.2 0.4 Interest bea
Slide 6: Key features of the financial position
For personal use only Key features of the financial position ● Solid operating cash flow of $13.4m drove net cash increase of $8.1m ● US$10m loan facility for the acquisition of Mayne Pharma International Pty Ltd in November 2009 repaid ● Earn-out reduced by $5.8m reflecting ● $2.9m payment of earn-
Slide 7: Cash flow
Cash flow $ millions FY12 FY11 For personal use only PBIT 8.7 0.0 Amortisation / depreciation 5.6 7.9 Reduction in earn-out liability (3.9) - Net interest received 0.2 0.0 Tax received / (paid) 0.8 (2.9) Other 2.0 (0.9) Net operating cash flow 13.4 4.1 Capex (2.5) (2.1) Repayment of borrowings (2.3)
Slide 8: Group sales breakdown
Group sales breakdown Channel sales Regional sales For personal use only Out-licensed Australia 8% 22% 7% USA Direct / MPA 59% 46% Korea 19% 39% Contract Manufacturing Other Change pcp Change pcp Direct (MPA) +5.6% Australia +6.9% Out-licensed +13.0% USA +10.7% Out-licensed (excl. Doryx) +17.8% Kore
Slide 9: Mayne Pharma Australia (direct sales)
For personal use only Mayne Pharma Australia (direct sales) ● Mayne Pharma Australia represents $9.8m or 19% of sales and up 5.6% on pcp ● New pricing program implemented for key products in final quarter of FY12 ● New aspirin tablet press validated and first shipments of Salisbury manufactured Astr
Slide 10: Out-licensed sales
For personal use only Out-licensed sales ● Out-licensed sales represent $30.6m or 59% of total sales and were up 13.0% on pcp ● Out-licensed sales excluding Doryx® up 17.8% to $10.2m ● Mayne’s Korean partner, Boryung, continues to actively market Astrix® and grow sales at double digit levels ● Teva
Slide 11: US Doryx
For personal use only US Doryx ● Mayne Pharma FY13 US Doryx sales are expected Warner Chilcott Doryx® 150 mg tablet to be significantly below FY12 sales due to timing (Weekly prescription volume) of generic launch and destocking of the pipeline in 16,000 line with the new underlying demand profile G
Slide 12: US Doryx - litigation update
For personal use only US Doryx - litigation update Patent non-infringement ● Appeal on the non-infringement judgement on the Doryx® ‘161 patent has been filed with the US Court of Appeals Anti-trust ● In July 2012, Mylan filed an anti-trust suit against Warner Chilcott LLC and Mayne Pharma in the U.
Slide 13: Contract manufacturing services
For personal use only Contract manufacturing services ● Contract manufacturing of liquids and creams represents $11.4m or 22% of sales and up 9.0% on pcp ● New product lines introduced by customers are continuing to drive this part of the business ● Recently renegotiated more than 50% of contract ma
Slide 14: R&D pipeline
R&D pipeline For personal use only Current Tier 1 product candidate pool representing US$5.8 billion in annual sales (1) Size of market(1) Key patent R&D program focused on the development Product Indication US$m expiry of generic and proprietary complex modified MPG patent release oral products S
Slide 15: SUBACAP—market update
For personal use only SUBACAP®—market update SUBACAP® European approval on track for FY13 Europe ● MHRA announced in June that SUBACAP® approvable in the UK ● Mayne Pharma submitting response to reactivate the Decentralised Procedure in Germany, Spain and Sweden • Process commenced to secure marketi
Slide 16: Outlook
For personal use only Outlook Milestones ● SUBACAP® approvable in UK R achieved ● Debt paid down R ● Appointment of Adelaide–based CEO and Sales and Marketing Director R ● Commencement of two new R&D projects R ● Renegotiated major contract customer for a further 3 years R ● Manufacture of aspirin t