Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — FY2017 Earnings Presentation
27 slides from Mayne Pharma's earnings presentation, Aug 25, 2017
Slide 1: FY17 Results Presentation
For personal use only Mayne Pharma Group Limited FY17 Results Presentation 25 August 2017 Scott Richards, Chief Executive Officer Nick Freeman, Group Chief Financial Officer 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 Preliminary Financial Report and other market disclosures. This material is not intended to be relied upon as advice t
Slide 3: Executive summary
Executive summary For personal use only ● Revenue up 114%, reported EBITDA up 165% and reported NPAT up 137% on the prior corresponding period (pcp) driven by acquisitions, new product launches and Financial continued growth in Metrics Contract Services results ● Achieved positive operating cash flo
Slide 4: FY17 key financial metrics
FY17 key financial metrics1 For personal use only Reported basis Reported basis EBITDA NPAT Reported basis A$204.0m, +165% A$88.6m, +137% Revenue A$572.6m, +114% Underlying basis Reported basis EBITDA2 EPS A$206.5m, +133% 6.2 cents, +30% • (1) EBITDA and NPAT is profit attributable to member
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: US generic industry dynamics
US generic industry dynamics For personal use only ● Acceleration of generic approvals by FDA ● Consolidation of customers and payers ● Aggressive competition and pricing activities impacting the generic market ● Accelerated price deflation being reported by US generic peers ● Shift to complex gener
Slide 7: Generic Products Division (GPD)
Generic Products Division (GPD) Generic Products Division (GPD) For personal use only ● GPD revenue up 306% on pcp to US$315.6m A$million FY17 FY16 Change FY17 v FY16 - GPD revenue (excl. acquired Teva portfolio) grew 74% to US$135m driven by dofetilide and new product Revenue 418.7 106.8 292% launc
Slide 8: Diversified portfolio of products
Generic Products Division (GPD) Diversified portfolio of products For personal use only FY17 GPD revenue by family FY17 GPD revenue by number of Gx competitors1 Mayne Pharma only generic supplier Other (45+ 4% Dofetilide Five plus Gx products) 18% competitors 27% One Gx competitor 33% US$316m Microg
Slide 9: Specialty Brands Division (SBD)
Specialty Brands Division (SBD) Specialty Brands Division (SBD) For personal use only ● SBD revenue was US$46.6m, down 18% on pcp A$million FY17 FY16 Change impacted by the loss of exclusivity on Doryx® 50mg and FY17 v FY16 200mg in May 2016 Revenue 61.9 77.8 (20%) ● 2HFY17 revenue was US$26.4m up 3
Slide 10: Successful launch of three new specialty brands
Specialty Brands Division Successful launch of three new (SBD) specialty brands For personal use only 7,000 6,000 Launch of Launch of Ave TRx ~5,300 Ave TRx ~ 4,600 Doryx® MPC Fabior® and Sorilux® (pre generic event) Generic event 5,000 on Doryx® 50mg and 200mg 4,000 3,000 2,000 1,000 0 Doxycycline
Slide 11: Metrics Contract Services (MCS)
Metrics Contract Services (MCS) Metrics Contract Services (MCS) For personal use only ● MCS revenue was US$43.6m, up 22% on pcp A$million FY17 FY16 Change FY17 v FY16 ● Growth in revenue and gross profit has been driven by repeat business with existing clients, operating efficiencies Revenue 57.8 48
Slide 12: MCS client activities at all stages of development
Metrics Contract Services MCS client activities at all stages of (MCS) development1 For personal use only Potential pipeline of future commercial manufacturing contracts Phase I Phase II Phase III Commercial Products 35 37 30 28 Clients 27 27 23 17 16 commercial manufacturing quotes with peak unit d
Slide 13: Mayne Pharma International (MPI)
Mayne Pharma International (MPI) Mayne Pharma International (MPI) For personal use only ● Australia – benefited from sales growth in Lozanoc® A$million FY17 FY16 Change and oxycodone; offset by softer Kapanol® and FY17 v FY16 injectable sales as the Company divested a number of marketed oncology pro
Slide 14: Product pipeline update
Product pipeline update For personal use only ● R&D spend was A$35m with 16% directed to brand FY17 product approvals, launches and filings programs and the remainder focused on complex generic programs Approvals Launches Filings US – • Methylphenidate 37 1 ● 40+ pipeline products in the US targetin
Slide 15: Increasing complexity of dosage forms in product portfolio
Increasing complexity of dosage forms in product portfolio Pipeline products For personal use only Marketed product examples 2012 Today1 Other differentiated dosage Cyclosporine soft gel capsule - 4 forms Development and manufacturing complexity Hormonal device - - 1 Foam Fabior®, Sorilux® - 3 Deliv
Slide 16: Expanding Specialty Brands portfolio through organic and inorganic initiatives
Mayne Pharma will expand its Specialty Brands portfolio through organic and inorganic initiatives For personal use only TODAY FUTURE Dermatology Dermatology Doryx® Doryx® Doryx® MPC Doryx® MPC Fabior® Fabior® Sorilux® Sorilux® Trifarotene Foam products Infectious Oncology Eg. BCCNS1 diseases SUBA®-I
Slide 17: Trifarotene – NCE under development for rare diseases
Trifarotene – new chemical entity (NCE) under development for rare diseases For personal use only Mayne Pharma has entered into a global license agreement with Nestlé Skin Health for trifarotene in rare skin diseases Trifarotene is a new chemical entity (NCE) that is under development as an orphan
Slide 18: SUBA-Itraconazole franchise has multiple growth opportunities
SUBA®-Itraconazole franchise has multiple opportunities for growth For personal use only Anti-fungal Oncology ● Itraconazole is a broad spectrum anti-fungal used to treat ● Itraconazole has anti-cancer properties based on both superficial and systemic infections inhibition of the Hedgehog Signaling
Slide 19: Greenville site expansion on track for completion
Greenville site expansion on track for completion in early 2018 For personal use only ● New solid oral dose 125,000ft2 manufacturing facility in Greenville nearing completion ● Commissioning and validation across 2017 ● Creates new capacity and capability in the US to accelerate growth ● 7 acquired
Slide 20: Our key competitive advantages
Our key competitive advantages For personal use only Supply chain and alliance management Patient and Commercial M&A agility and M&A agility and prescriber execution integration know- integration intimacy and the how linkage to R&D Intellectual property expertise Drug delivery technology Portfolio P
Slide 21: Five strategic pillars to drive sustainable growth
Five strategic pillars to drive sustainable growth For personal use only ● Expansion of generics pipeline through strategic alliances (eg. Mithra, Corium) and other Generic business development Products expansion ● Create best in class R&D organisation with an array of differentiated dosage forms an
Slide 22: Outlook
Outlook For personal use only ● Executing a number of growth initiatives to offset pricing headwinds, including diversifying channels to market, growing share of marketed products, extracting Generic Products product cost savings from optimising the supply network, bringing new products to market an
Slide 23: Appendix
For personal use only Appendix
Slide 24: Profit and Loss – attributable to members
Profit and Loss – attributable to members For personal use only Year ending ● Reduced gross profit margins reflects changing Change portfolio mix following the Teva portfolio acquisition A$million 30 Jun 17 30 Jun 16 $m ● Increased operating leverage from recent Revenue 572.6 267.3 305.3 acquisition
Slide 25: Consolidated Balance Sheet Position
Consolidated Balance Sheet Position For personal use only As at As at Change ● Growth in inventory, receivables and payables reflect the inclusion of the A$million 30 Jun 17 30 Jun 16 $m acquired Teva portfolio Cash 63.0 47.5 15.5 ● Intangibles and goodwill increased by Inventory 106.4 38.9 67.5 A$9
Slide 26: Consolidated Cash Flow
Consolidated Cash Flow For personal use only Year ending Change ● A$181m working capital investment driven by the Teva portfolio acquisition and growth in the base business1 A$million 30 Jun 17 30 Jun 16 $m - A$70m increase in inventories Net operating cash flow pre tax, - A$146m increase in receiva
Slide 27: Debt profile
Debt profile For personal use only ● Dual currency debt facility - US$150m, 3 year bullet facility - US$250m 5 year bullet facility - US$20m 2 year working capital facility - A$10m, 2 year working capital facility ● Liquidity - Total liquidity A$250m - US$155m undrawn debt - Cash A$63m ● Average bor