Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Investor Presentation (August 2021)
30 slides from Mayne Pharma's investor presentation, Aug 27, 2021
Slide 1: FY21 Results Presentation
Mayne Pharma Group Limited FY21 Results Presentation 27 August 2021 Scott Richards, CEO Peter Paltoglou, 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 audited Financial Statements and market disclosures. This material is not intended to be relied upon as advice to investors or potential inves
Slide 3: Business and strategy update
Business and strategy update
Slide 4: Operating momentum through a challenging year
Operating momentum through a challenging year1 A$401m A$66m A$75m A$26m reported sales reported EBITDA underlying EBITDA2 opex2 reduction (-3% YOY in (-5% YOY in (-10% YOY in (-13% YOY in constant constant currency) constant currency) constant currency) currency) 1 80 11 70 ‘first pass’ NDA personne
Slide 5: Achieved strategic rebalance of the business to more sustainable categories
Achieved strategic rebalance of the business to more sustainable categories Gross profit by type1 FY19 FY21 18% 27% 29% 44% 9% 10% 16% 26% 5% 14% 2% 56% 82% Dermatology Women’s health Infectious disease US Contract Services International US retail generic 1. Reported gross profit adjusted for the in
Slide 6: Our key priorities to return Mayne Pharma to sustainable growth
Our key priorities to return Mayne Pharma to sustainable growth Women’s health Dermatology US Contract Services International 16% 29% 26% 9% of of of of GP GP GP GP ● Successful commercialisation ● Broaden dermatology offering ● Invest in broader capabilities ● Establish dermatology and of NEXTSTELL
Slide 7: 'First pass' FDA approval of NEXTSTELLIS with commercial launch on track
Women’s health ‘First pass’ FDA approval of NEXTSTELLIS® with commercial launch on track ● FDA approval of NEXTSTELLIS® in April 2021 and on-time launch in June 2021 ● New women’s health national sales team in field - 120+ years of women’s health experience in sales leadership team - >80% of 70-pers
Slide 8: NEXTSTELLIS offers a predictable cycle with minimal impact on the body
Women’s health NEXTSTELLIS® offers a predictable cycle with minimal impact on the body Estetrol (E4) is the first newly approved Drospirenone (DRSP) is a proven progestin estrogen in a contraceptive in 50 years • Closely resembles natural progesterone • Derived from a plant source • Anti-mineralocor
Slide 9: Commercialisation objectives for NEXTSTELLIS
Women’s health Commercialisation objectives for NEXTSTELLIS® Educate Differentiate Access Experience ● Establish E4 as ● Solidify ● Secure best in ● Seamless patient preferred NEXTSTELLIS® as class market experience estrogen in the contraceptive access contraceptives without compromise ● 10 million
Slide 10: NEXTSTELLIS launch tracking to business plan
Women’s health NEXTSTELLIS® launch tracking to business plan On track with plan Market access ✓ Commercial coverage : 50% formulary access, 38% unrestricted 1 ✓ Medicaid: 88% formulary access, 24% unrestricted ✓ US$2.8m of net sales in June 2021 (inventory stocking) Supply chain ✓ ~30% with patients
Slide 11: Building a women's health franchise
Women’s health Building a women’s health franchise Today Future ● One of the largest suppliers of oral ● Addition of complementary branded contraceptives (OC) in the US with more products to leverage existing than 20 marketed products infrastructure - OC portfolio covers ~75% of US contraceptive vol
Slide 12: Evolving US dermatology model
Dermatology Evolving US dermatology model ● Marketed portfolio of brand and generic products ● Supported by 52-person field force team to promote entire portfolio ● Model aims to provide benefits to stakeholders: - Patient – improved convenience and price transparency - Prescriber - reduced administ
Slide 13: Acceleration of dermatology product partnerships with leading generic companies
Dermatology Acceleration of dermatology product partnerships with leading generic companies1 Deal Supply partner # of approved IQVIA market Target launch completion dermatology details2 date products Aug 2021 Undisclosed 2 >US$100m market 1HFY22 Jul 2021 7 >US$100m market 1HFY22 Jul 2021 1 >US$150m
Slide 14: Expanding dermatology portfolio
Dermatology Expanding dermatology portfolio ● Entered into four new supply agreement to US dermatology portfolio launch up to 11 generic dermatology products (number of products) targeting addressable markets of US$500m1 ● Dermatology portfolio covers key therapeutic conditions including acne, psori
Slide 15: Consistent track record of US Contract Service growth
US contract services Consistent track record of US Contract Service growth ● Metrics Contract Services (Metrics or MCS) is one of US Contract Services historical sales (US$m) a few potent solid oral dose CDMOs with a single site for early-stage development through to 70 commercialisation 60 ● 100+ a
Slide 16: Global CDMO market dynamics
US contract services Global CDMO market dynamics ● CDMO market valued at US$100b and growing 7% Global CDMO forecast market performance per annum, outpacing the broader pharma industry US$b 200 ● Continued increase in outsourcing of development 150 and manufacturing activity 100 ● Growing number of
Slide 17: Consistent track record of International growth
International Consistent track record of International growth ● 175 years of history in the Australian pharmaceutical Mayne Pharma International (A$m) market - First Australian company to receive FDA approval for 45 a New Drug Application (NDA) 40 ● 40+ years of expertise in drug delivery 35 ● Large
Slide 18: Select international pipeline for growth
International Select international pipeline for growth Target Market Potential launch Product Country Therapeutic Area Regulatory status Value1 (A$m) timing ACTIKERALL® (5FU / Australia Actinic Keratosis Approved 18 FY22 salicylic acid) solution NEXTSELLIS® Australia Contraception Filed 70 FY22 (E4/
Slide 19: Realignment of cost base to improve profitability
Cost base Realignment of cost base to improve profitability Opex reduction1 (A$m) ● Opex reduced by ~A$26m or 20% v pcp1 140 - A$18m or 13% v pcp on a 130 constant currency basis 120 -9 -11 FY21 110 achievements ● Streamlined generic R&D and 100 129 -7 reduced gross spend by A$9m 90 102 v pcp 80 FY2
Slide 20: Financial results
and pharma Financial results
Slide 21: Key financials
Key financials1 A$million FY21 FY20 Change FY21 Change Reported currency Constant currency4 Reported revenue 400.8 457.0 (12%) 441.2 (3%) Reported gross profit2 182.0 211.5 (14%) 200.4 (5%) Reported EBITDA 66.1 80.6 (18%) 76.3 (5%) Reported net loss after tax (208.4) (92.8) Nm Nm Underlying EBITDA3
Slide 22: Adjustments to earnings – FY21
Adjustments to earnings1 – FY21 EBITDA adjustments PBIT A$million Non cash FY21 FY20 FY21 Comments Reported 66.1 80.6 (230.9) Abnormal level of gross to net charges (eg. returns Gross to net adjustments Yes - 14.6 and govt rebates) relating to a change in accounting methodology and estimates Relate
Slide 23: Metrics Contract Services (MCS or Metrics)
Metrics Contract Services (MCS or Metrics) ● Strong growth in commercial manufacturing now Change US$million FY21 FY20 representing 20% of MCS revenue up from 8% in FY21 v FY20 the pcp Reported revenue 61.3 55.6 10% - 2HFY21 revenue up 20% on 1HFY21 Gross Profit 31.3 26.4 18% ● Completed US$10m expa
Slide 24: Mayne Pharma International (MPI or International)
Mayne Pharma International (MPI or International) ● MPI benefited from growth in Australian products Change A$million FY21 FY20 and CDMO revenue offset by decline in FY21 v FY20 international products Reported revenue 42.8 42.4 1% ● In Australia, UROREC® (silodosin) and oxycodone contributed to grow
Slide 25: Specialty Products Division (SPD)
Specialty Products Division (SPD) ● Launched two new women’s health products - Change US$million FY21 FY20 NEXTSTELLIS® (E4/DRSP) and SOLTAMOX® FY21 v FY20 (tamoxifen) oral solution Reported revenue 53.3 52.9 1% ● Dermatology sales were negatively impacted by COVID-19 and reduced access to physician
Slide 26: Generic Products Division (GPD)
Generic Products Division (GPD) ● GPD impacted by ongoing pricing pressure due to Change additional competition across the portfolio US$million FY21 FY20 FY21 v FY20 ● Two new competitors launched on liothyronine Reported revenue 152.8 169.8 (10%) with sales down 60% in 2HFY21 v 1HFY21 Gross Profit
Slide 27: Reported to underlying earnings attributable to members
Reported to underlying earnings attributable to members Reported Earn-out Drug pricing Underlying A$million Restructuring Impairment INTI FY21 reassessment investigations FY21 Revenue 400.8 1.3 402.1 Gross profit 182.0 6.0 188.0 Gross profit % 45% 47% EBITDA 66.1 (20.6) 15.5 2.1 0.4 63.5 Depreciatio
Slide 28: Consolidated balance sheet position
Consolidated balance sheet position A$million As at 30 Jun 21 As at 30 Jun 20 Change $m ● Net assets decreased A$270m on a reported currency basis driven by Cash 98.0 137.8 (39.8) intangibles asset impairment of A$229m Inventory 102.5 94.0 8.5 - A$71m decrease to foreign currency Receivables 183.3 1
Slide 29: Consolidated cash flow – EBITDA to cash reconciliation
Consolidated cash flow – EBITDA to cash reconciliation Full year ending Change ● Cash flow working capital movements based on average A$million 30 Jun 21 30 Jun 20 $m AUD/USD exchange rate for the Reported EBITDA attributable to members1 66.1 80.6 (14.5) period whereas the June balance Minority shar
Slide 30: Capital structure
Capital structure ● Dual currency debt facility Key financial metrics - US$200m, 5 year revolving facility, matures As at As at November 2023 A$million 30 Jun 21 30 Jun 20 Change $ - US$100m, 4 year bullet facility, matures November 2024 Syndicated facility 298.8 347.7 (48.9) - US$50m, 364 days rece
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