Slide 1: 1HFY17 Results Presentation
For personal use only Mayne Pharma Group Limited 1HFY17 Results Presentation 24 February 2017 Scott Richards, Chief Executive Officer Mark Cansdale, Group CFO 1
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: Key highlights
Key highlights For personal use only ● Exceptionally strong half with revenue and reported EBITDA up 132% and 217% respectively on the prior corresponding period (pcp) driven by Generic Products, Metrics Contract Services and Mayne Pharma International ● Specialty Brands business performed well desp
Slide 4: 1HFY17 key financial metrics
1HFY17 key financial metrics1 For personal use only Reported basis Reported basis EBITDA NPAT Reported basis A$129.2m, +217% A$72.7m, +278% Revenue A$294.8m, +132% Underlying basis Reported basis EBITDA2 EPS A$108.5m, +158% 5.2 cents, +109% All key performance indicators trending strongly (1
Slide 5: Mayne Pharma business units
Mayne Pharma business units US Business Units Rest of World For personal use only Generic Products Division Specialty Brands Division Metrics Contract Services Mayne Pharma (GPD) (SBD) (MCS) International (MPI) ● Develops, markets and ● Develops, markets and ● Provides contract ● Develops, markets a
Slide 6: Generic Products Division (GPD)
Generic Products Division (GPD) For personal use only ● GPD revenue up 420% on pcp to US$167.8m A$million 1HFY17 1HFY16 Change 1HFY17 v - Acquired Teva products contributed US$100.5m in 1HFY16 revenue with gross profit margin exceeding 50% Revenue 222.6 44.6 399% - GPD revenue (excl. acquired Teva p
Slide 7: Top generic products performance
Top 5 generic products performance For personal use only 1HFY17 GPD revenue by family Top 5 product families 1 2 3 4 5 Other (45+ Microgestin® / products) 1 Dofetilide Family Dofetilide Microgestin® Fe BAC Methylphenidate Clonidine 17% Indication Arrhythmia Contraceptive Pain ADHD Hypertension Form
Slide 8: Dofetilide performance since launch
Dofetilide performance since launch For personal use only Dofetilide weekly prescriptions (TRx)1 10,000 9,000 8,000 7,000 Market share 6,000 61% 5,000 4,000 3,000 2,000 22% 17% 1,000 0 17-Jun-16 17-Jul-16 17-Aug-16 17-Sep-16 17-Oct-16 17-Nov-16 17-Dec-16 17-Jan-17 Total market Total generic Mayne Ph
Slide 9: Teva generic portfolio acquisition update
Teva generic portfolio acquisition update For personal use only ● Successful transition of the acquired portfolio - No supply chain disruptions or material loss of business outside normal market competition - 99% of products SKU’s now in Mayne Pharma labelling - Positive feedback from customers and
Slide 10: Specialty Brands Division (SBD)
Specialty Brands Division (SBD) For personal use only ● SBD revenue was US$20.2m, down 36% on pcp A$million 1HFY17 1HFY16 Change impacted by the loss of exclusivity on Doryx® 50mg 1HFY17 v and 200mg in May 2016 1HFY16 - 2QFY17 revenue was US$12.7m up 68% on 1QFY17 Revenue 26.8 43.4 (38%) benefiting
Slide 11: Foam asset acquisition update
Foam asset acquisition update For personal use only ● Fabior® and Sorilux® foam products launched as Fabior weekly prescriptions (TRx) Mayne Pharma launches Fabior planned in Jan 2017 following acquisition in August 800 700 ● Fabior® is a patent-protected foam product 600 indicated for the topical t
Slide 12: Metrics Contract Services (MCS)
Metrics Contract Services (MCS) For personal use only ● MCS revenue was US$21.2m, up 25% on pcp A$million 1HFY17 1HFY16 Change 1HFY17 v ● Growth in revenue and gross profit has been driven 1HFY16 by repeat business with existing clients and increased late-stage development work Revenue 28.1 23.5 20%
Slide 13: Mayne Pharma International (MPI)
Mayne Pharma International (MPI) For personal use only ● Australia - Lozanoc® and generic oxycodone grew A$million 1HFY17 1HFY16 Change offset by softer Kapanol® sales 1HFY17 v 1HFY16 ● Rest of world (ROW) - benefited from sales growth in Astrix® and Lozanoc® partner sales Revenue 17.3 15.8 10% ● Li
Slide 14: R&D update
R&D update For personal use only ● R&D spend was A$15.6m as the Company focused on US Pipeline statistics – IMS market size (US$bn)1 higher value and differentiated product opportunities in 8.0 the US 5.0 6.0+ 6.0 ● 40+ pipeline products in the US targeting markets with IMS Health sales >US$6bn1 4.0
Slide 15: Strategic alliances driving future growth
Strategic alliances driving future growth Alliance established For personal use only British multinational speciality chemicals and sustainable 2008 technologies company Contract, development and manufacturing organisation (CDMO) 2013 specialising in solid dose and non-sterile liquid pharmaceuticals
Slide 16: Greenville site expansion on track for completion in 2018
Greenville site expansion on track for completion in 2018 For personal use only February 2017 January 2017 16
Slide 17: Leadership team has been restructured with new talent also recruited
Leadership team has been restructured with new talent also recruited For personal use only Global USA Stefan Cross John Ross Chief Commercial Officer President, Mayne Pharma USA Hospira, FH Faulding & Co CPL, Eli Lilly 20+ years of industry experience 20+ years of industry experience Joined Mayne Ph
Slide 18: Capital management
Capital management For personal use only ● Solid financial position: ~1.0x gearing (net debt / annualised EBITDA) ● US$400m syndicated debt facility negotiated for the Teva product acquisition - US$170m of undrawn debt - Average borrowing cost 3.7% (includes undrawn line fee) ● Maintain flexibility
Slide 19: Five strategic pillars that drive growth
Five strategic pillars that drive growth For personal use only ● Optimise manufacturing network to drive cost efficiencies ● Create best in class R&D organisation US Generic ● Increased investment in Paragraph IVs ● Supply chain excellence Operational Products efficiency expansion ● Complementary bu
Slide 20: Appendix
For personal use only Appendix
Slide 21: Earnings comparison – attributable to members
Earnings comparison – attributable to members For personal use only Half year ending Change ● Reduced gross profit margins reflect changing portfolio mix following the Teva A$million 31 Dec 16 31 Dec 15 $m portfolio acquisition and greater contribution from dofetilide which has a Revenue 294.8 127.3
Slide 22: Balance Sheet position
Balance Sheet position For personal use only As at As at Change ● Growth in inventory, receivables and payables reflect the inclusion of the Teva A$million 31 Dec 16 30 Jun 16 $m product portfolio Cash 80.8 47.5 33.3 ● Intangibles and goodwill increased by Inventory 108.9 38.9 69.9 A$964.2m reflecti
Slide 23: Cash flow
Cash flow For personal use only Half year ending Change ● A$171m additional working capital investment driven by the Teva portfolio A$million 31 Dec 16 31 Dec 15 $m acquisition and growth in the base EBITDA - underlying 108.5 42.1 66.4 business1 Other (0.8) (5.9) 4.0 - A$65.7m increase in inventorie