Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — FY2023 Earnings Presentation
26 slides from Mayne Pharma's earnings presentation, Aug 31, 2023
Slide 1: Mayne Pharma Group Limited FY23 Results Presentation
Mayne Pharma Group Limited FY23 Results Presentation 31 August 2023 Shawn Patrick O’Brien, CEO Aaron Gray, CFO 1
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 Preliminary Financial Report and other market disclosures. This material is not intended to be relied upon as advice to investors or potential
Slide 3: FY23 Performance Highlights
FY23 Performance Highlights Refocused on core businesses and reset capital structure ✓ Completed sale of Metrics Contract Services and US Retail Generics for a combined sale price of US$565m ✓ Created scale in US Women’s Health business via TXMD transaction1 ✓ Transformed balance sheet – net cash of
Slide 4: Mayne Pharma at a Glance
Mayne Pharma at a Glance Capitalising on commercial opportunities across three attractive business units Putting the right people, products, and processes in place to address the needs of patients and drive long-term sustainable growth in each of our three segments Branded Products (Women’s Health)
Slide 5: FY24 Outlook
FY24 Outlook Positive momentum continues into FY24 ✓ Completion and integration of FY23 transactions ✓ Another year of focused execution ✓ All three business units delivering positive contribution margins ✓ Return Company to positive EBITDA in FY24 Women’s Health Dermatology International • NEXTSTEL
Slide 6: Group Financial Overview
Group Financial Overview • Results are presented from continuing operations to exclude Metrics Contract Services (MCS) which was divested on 4 October 2022 and to exclude the US Retail Generics business (previously included in the Portfolio Products (PPD) segment) which was divested on 7 April 2023.
Slide 7: Segmental Performance
Segmental Performance Refocused business delivering improved momentum and positive contribution in 2H Reported results (A$m) 1HFY23 2HFY23 FY23 FY22 1HFY23 2HFY23 FY23 FY22 Revenue Gross profit Portfolio Products 11.1 45.9 57.0 92.2 Portfolio Products -2.6 13.3 10.7 45.4 Branded Products 13.4 48.5 6
Slide 8: FY23 Underlying Results
FY23 Underlying Results Reconciliation of reported to underlying profit and loss (A$ million) REPORTED ATTRIBUT- ABLE TO Earn-Out Derivative MEMBERS Reassess- Doubtful Supply Chain Asset Insurance Fair Value ADJUSTED JUNE 2023 ments Restructuring Debt Disruption Impairments Recovery Adjustment INTI
Slide 9: Group Financial Overview: Reconciliation of reported to underlying EBITDA
Group Financial Overview Reconciliation of reported to underlying EBITDA A$ million1 Adjustments – FY23 Comments Reported EBITDA (102.0) Earn-out assessment (23.9) Non-cash movement arising from change in fair value of earn-out liabilities Restructuring 12.1 Related to organisational transformation
Slide 10: Group Financial Overview: EBITDA to cash reconciliation
Group Financial Overview EBITDA to cash reconciliation A$ million FY23 EBITDA attributable to members - ADJUSTED (95.3) Restructuring (12.1) Litigation costs (5.1) Transaction costs (21.7) ● Generated positive operating cash flow Total working capital movements 145.4 $14.1m 2HFY23 in line with impro
Slide 11: Consolidated balance sheet
Group Financial Overview Consolidated balance sheet A$ million FY23 FY22 Change ● Working capital reductions reflective of Cash and equivalents 92.6 96.7 (4.1) MCS and RGx divestments and Inventory 82.7 108.9 (26.2) transformation journey of the company. Receivables 194.9 268.2 (73.3) ● Payables ref
Slide 12: Cost adjustments delivering some results – more work to do
Cost adjustments delivering some results – more work to do ● FY23 OPEX without mitigating measures would total $194.4M ● Cost savings focus delivers $5.8M in FY23 12
Slide 13: Reducing costs to enable investment in growth
Reducing costs to enable investment in growth ● FY23 investments: (3.5%)* - $16.9m NEXTSTELLIS® DTC + AU FY23 costs FY23 (5.5%)* (2.0%)* FY24 added(2) reduction FY24 Further investment(3) launch reduction FY23 costs realized in process/ FY24 - $18m TXMD added(2) budgeted reduction - $4.5m disinterme
Slide 14: Branded Products Division (BPD)
Branded Products Division (BPD)
Slide 15: Women’s Health / Branded Products Division (BPD)
Women’s Health / Branded Products Division (BPD) FY23 highlights ● Segment performance reflects 2HFY23 contribution from licensed WH A$million 1H23 2H23 FY23 FY22 products as well as improved performance of NEXTSTELLIS® following refreshed marketing strategy. Reported revenue 13.4 48.5 61.9
Slide 16: NEXTSTELLIS® Update
NEXTSTELLIS® Update ● Monthly cycle count increased to 33,100 in July 2023 (+2.5x from July 2022) ● Unit sales growth of 267% on FY22 – total units of 256,330 for FY23 ● Growth of prescriptions through improved commercial effectiveness and efficiency NEXTSTELLIS® monthly cycles 16 Cycle totals based
Slide 17: Women’s health expansion portfolio update
Women’s health expansion portfolio update ● Women’s health expansion portfolio is delivering to expectation in demand units (scripts) ● Momentum building into FY24 as investment in sales and marketing is gaining traction in the menopause including targeting specialist HCPs IMVEXXY® Units ANNOVERA® U
Slide 18: Portfolio Products Division (PPD) - Dermatology
Portfolio Products Division (PPD) - Dermatology
Slide 19: Portfolio Products Division (PPD) - Dermatology
Portfolio Products Division (PPD) - Dermatology FY23 highlights A$million 1H23 2H23 FY23 FY22 ● 2HFY23 sales reflecting improved sales as inventories normalised and pricing stabilised Reported revenue 11.1 45.9 57.0 92.2 Reported Gross Profit (2.6) 13.3 10.7 45.4 ● Continued conservative ap
Slide 20: Disintermediating the Pharmaceutical Value Chain
Disintermediating the Pharmaceutical Value Chain Pharmaceutical Value Chain The pharmaceutical value chain is filled with Plan Sponsor inefficiencies and pain points • Multiple stakeholders with opposing financial interests cause inefficiencies, higher costs, lack of transparency, and lack of trust
Slide 21: Disintermediation Strategy
Disintermediation Strategy Mayne Pharma’s unique platform spans the entire value chain, allowing for the ability to create a comprehensive, frictionless, transparent, and cost-effective experience Why Dermatology? Why Mayne Pharma? 130 territory representatives ✓ There is great desire for ✓ Drug sou
Slide 22: International
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Slide 23: International
International FY23 highlights ● Solid progress as new management team commenced business improvement initiatives at Salisbury manufacturing facility including product throughput efficiency, procurement initiatives and building International business development opportunities A$million 1H23 2H23 FY23
Slide 24: Strategy for Growth
Strategy for Growth Addressing the needs of patients across 3 segments while driving sustainable profitability and growth Near term initiatives Broaden Women’s Health and Dermatology portfolios, leveraging sales infrastructure and Patients distribution platforms Continue to find ways to disintermedi
Slide 25: Business Outlook and Priorities for FY24
Business Outlook and Priorities for FY24 ● The Company expects to complete integration of the licensed women’s health assets in FY24 with a focus on growth and improving net selling prices. The Company is pursuing a growth strategy with the expected launch of low strength BIJUVA® and by leveraging o
Slide 26: Q&A
Q&A You deserve tomorrow. 26