Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — H1 FY2012 Earnings Presentation
16 slides from Mayne Pharma's earnings presentation, Feb 28, 2012
Slide 1: Results Presentation for six months ended 31 December 2011
For personal use only Mayne Pharma Group Limited Results Presentation for six months ended 31 December 2011 28th February 2012 www.maynepharma.com
Slide 2: Executive Summary
Executive Summary For personal use only • US Doryx® orders stabilised and volumes up on last year Doryx® • Doryx® maintained marketing exclusivity in the US • Doryx® patent trial concluded - decision expected in March • Refining the US SUBACAP® clinical trial program SUBACAP® • Collaborating with th
Slide 3: Key financials
Key financials For personal use only • Revenue $27.1m consistent with pcp – despite continued strengthening of A$ • Gross profit $12.5m, down 5.2% due to FX and changes in product mix • Reported earnings up on pcp – EBITDA $8.8m, up 73.4% – NPAT $3.9m, up 242.3% – EPS 2.55 cps, up 235.7% • Underlyin
Slide 4: Earnings comparison
Earnings comparison For personal use only $ millions HY12 HY12 HY12 HY11 Change reported adjustments underlying reported (underlying) Revenue 27.1 27.1 27.1 0.1% Gross profit 12.5 12.5 13.2 (5.2%) EBITDA 8.8 (2.5) 6.3 5.1 24.4% Depreciation (0.9) (0.9) (0.8) 9.8% EBITA 7.9 (2.5) 5.4 4.2 27.2% Amorti
Slide 5: Key features of the financial result
Key features of the financial result For personal use only • Doryx® sales decline (in A$) offset by growth in other products including Astrix®, Kadian®, Eryc® and contract manufacturing • Continued strengthening of the AUD reduced earnings by approximately $0.9m • Targeted cost savings on track • Ad
Slide 6: Balance sheet position
Balance sheet position For personal use only $ millions As at As at As at Change 31/12/11 30/6/11 31/12/10 31/12/11 over 30/06/11 Cash 6.1 5.8 13.4 4.6% Inventory & receivables 14.7 12.1 14.0 21.7% PP&E 22.2 21.5 21.3 3.6% Intangibles 6.3 8.2 11.2 (23.3%) Other assets 6.1 6.1 3.9 (0.8%) Total assets
Slide 7: Key features of the financial position
Key features of the financial position For personal use only • Debt repaid; new US$5m 3-year bill facility now in place if required • Cash rebuild started – Solid operating cash flow of $4.1m drove net cash increase of $2.6m • Earn-out reduced by $2.5m (net) reflecting $3.1m reduction in valuation a
Slide 8: Cash flow
Cash flow For personal use only $ millions 1HY12 1HY11 EBIT – reported 6.0 1.1 Amortisation / depreciation 2.8 4.0 Reduction in earn-out liability (3.1) 0.0 Net interest paid 0.0 0.0 Tax paid 0.0 (2.9) Other (1.6) (1.4) Net operating cash flow 4.1 0.8 Capex (1.7) (1.1) Repayment of borrowings (2.3)
Slide 9: Group sales breakdown
Group sales breakdown For personal use only Product sales Regional sales 10% 16% 7% 46% 42% 21% 41% 17% Change pcp Change pcp Doryx® -6.9% Australia 5.5% Astrix® 5.6% USA -6.3% Contract manufacturing 12.8% Korea 18.7% Other 5.9% Other 2.1% 9
Slide 10: Doryx®
Doryx® For personal use only • Doryx® our key proprietary product represents 46% of revenue • Doryx® revenue up 70.7% on six months to 30 June 2011 due to a return to more normalised ordering patterns by Warner Chilcott • Doryx® revenue down 6.9% on pcp driven by the stronger AUD – Actual settled ra
Slide 11: Doryx® Patent Update
Doryx® Patent Update For personal use only • Doryx® patent hearing concluded in the US District Court on 9 February 2012 – Two defendants (Mylan Pharmaceuticals Inc, Impax Laboratories Inc) arguing that the Doryx® patent is invalid, unenforceable or not infringed by their generic product – Outcome o
Slide 12: Astrix®
Astrix® For personal use only • Astrix® and Mayne Pharma-branded aspirin represents 17% of revenue and up 5.6% • Number 1 prescribed low-dose aspirin in Australia • Growth driven by international sales – Korean partner, Boryung, continues to actively market Astrix® and grow sales at double digits •
Slide 13: Contract manufacturing
Contract manufacturing For personal use only • Contract manufacturing of liquids and creams represents 21% of sales and up 12.8% • New product lines introduced by customers are continuing to drive this part of the business • Several new business development opportunities are being explored to utilis
Slide 14: SUBACAP®
SUBACAP® For personal use only • In the process of refining the proposed US clinical trial program – Meeting with the US FDA to confirm the design, clinical endpoints, scope and size of a trial in Onychomychosis – Feedback from the FDA will be used to refine the US strategy for SUBACAP® • Responding
Slide 15: Multiple growth drivers
Multiple growth drivers For personal use only 1. Expanded sales and marketing effort of the Australian proprietary product portfolio 2. Expansion of proprietary products into new markets / territories 3. Bring to market new formulations of existing products 4. Utilise excess capacity and grow contra
Slide 16: Key milestones
Key milestones For personal use only Achieved • Debt paid down • Doryx® maintained marketing exclusivity in the US • Doryx® Paragraph IV settlement with Sandoz Inc • On track with forecast cost savings • New Adelaide-based CEO appointed Ongoing • Regulatory approval of SUBACAP® • Clarity around Dory