Mayne Pharma Group Ltd. · ASX:MYX
Mayne Pharma — Investor Presentation (February 2021)
26 slides from Mayne Pharma's investor presentation, Feb 24, 2021
Slide 1: Mayne Pharma Group Limited 1HFY21 Results Presentation
Mayne Pharma Group Limited 1HFY21 Results Presentation 24 February 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: Executive summary
Executive summary ● Reported revenue of A$209m, reported EBITDA of A$40.5m and underlying EBITDA of A$39.9m ● Constant currency underlying EBITDA of A$44m down 7% on 1HFY20 ● Reported net loss after tax of A$181.3m impacted by non-cash intangible asset impairment Financial ● Operating cash flow of A
Slide 4: Key financials
Key financials1 A$million 1HFY21 1HFY20 Change 1HFY21 Change Reported currency Constant currency5 Reported revenue 208.8 227.2 (8%) 219.4 (3%) Reported gross profit2 96.9 106.4 (9%) 101.9 (4%) Reported EBITDA 40.5 34.6 17% 44.5 29% Reported net loss after tax (181.3) (18.2) Nm Nm Underlying EBITDA3
Slide 5: Adjustments to earnings – 1HFY21
Adjustments to earnings1 – 1HFY21 EBITDA adjustments PBIT A$million Non cash 1HFY21 1HFY20 1HFY21 Comments Reported 40.5 34.6 (211.8) Abnormal level of gross to net charges (eg. returns Gross to net adjustments Yes - 9.3 - and govt rebates) relating to a change in accounting methodology and estimate
Slide 6: Actively rebalancing the business to more sustainable categories
Actively rebalancing the business to more sustainable categories Reported gross profit by type 1HFY19 1HFY20 1HFY21 10% 17% 23% 20% 32% 24% 54% 7% 6% 34% 16% 34% 9% 3% 11% 46% 68% 77% CDMO1 / Contract services Dermatology Women’s health Infectious disease / ROW US retail generic ● On a constant curr
Slide 7: Key strategic priorities and anticipated milestones
Key strategic priorities and anticipated milestones 1 ○ FDA approval and successful launch of NEXTSTELLIS™ in the U.S. Commercialisation of novel oral contraceptive ○ Recruit new women’s health team in the U.S. NEXTSTELLIS™ ● TGA filing of NEXTSTELLIS™ in Australia 2 ○ Successful launch of products
Slide 8: Commercialisation of novel oral contraceptive NEXTSTELLIS (E4/DRSP)
1 Commercialisation of novel oral contraceptive NEXTSTELLIS™ (E4/DRSP) Branded contraceptive containing a new estrogen – Estetrol (E4) and the progestin – drospirenone (DRSP) • Novel estrogen – Estetrol is a low impact estrogen with a unique mechanism of action that offers potential advantages over
Slide 9: Commercialisation of novel oral contraceptive NEXTSTELLIS (E4/DRSP)
1 Commercialisation of novel oral contraceptive NEXTSTELLIS™ (E4/DRSP) ● NDA accepted for filing by FDA in June 2020 with April 2021 PDUFA date Regulatory ● TGA filing in August 2020 with potential approval 2HCY21 ● Two positive FDA meetings in September 2020 and January 2021 ● Labelling discussion
Slide 10: Significant progress made in preparing for the commercial launch of NEXTSTELLIS in the U.S.
1 Significant progress made in preparing for the commercial launch of NEXTSTELLIS™ in the U.S. Key management supporting NEXTSTELLIS™ launch Donald Pearl Dr Gerard Nahum EVP, Women’s Health Chief Medical Officer Allergan, Ipsen Bayer, FDA, Duke University 30+ years of industry experience 30+ years o
Slide 11: US combined hormonal contraceptive (CHC) market remains attractive
1 US combined hormonal contraceptive (CHC) market remains attractive Combined oral contraceptive monthly EUTRx ● Value of CHC market is US$4b: (million) 9% 300 Oral 23% 250 Ring 200 68% Patch 150 ● The contraceptive coverage mandate 100 of the Affordable Care Act is expected to expand under the new
Slide 12: Expanding dermatology and women's health portfolio
2 Expanding dermatology and women’s health portfolio Aug 2016 Oct 2018 Oct 2020 Launched DORYX® MPC Acquired LEXETTE® foam Launched DORYX® 80mg tablets 120mg tablet Branded Feb 2015 Aug 2016 Nov 2019 Nov 2020 DORYX® brand acquired from Acquired FABIOR® foam and Licensed NEXTSTELLIS™ Acquired SOLTAMO
Slide 13: Continued investment in dermatology and women's health pipeline
2 Continued investment in dermatology and women’s health pipeline ● Two high impact rare disease programs - Global phase II study with trifarotene in patients with lamellar ichthyosis underway. 49 patients enrolled with top line results expected FY22 - SUBA-itraconazole to treat BCCNS/Gorlin’s Syndr
Slide 14: Maximise SUBA-itraconazole franchise
3 Maximise SUBA®-itraconazole franchise ● TOLSURA® (SUBA®-itraconazole) capsules TOLSURA Units, TRx and NRx1 experienced solid growth across FY20 until the 600 COVID-19 pandemic 500 - Key prescribers (eg. Infectious disease / respiratory physicians) directly involved in 400 treating COVID-19 patient
Slide 15: U.S. and AU contract service platforms continue to grow
4 U.S. and AU contract service platforms continue to grow ● 100+ customers including 11 of the top 20 US contract services revenue by type (US$m) global pharma companies R 60 12% CAG ● 50+ molecules in development 50 40 ● 5 commercial products 30 20 ● 150+ scientists 10 0 ● 25+ years of history in n
Slide 16: Investing in global contract service platform to drive continued growth
4 Investing in global contract service platform to drive continued growth Increased capacity & expanding capabilities Commercial and operational excellence ● US$10m expansion of production space in the ● Overhaul of sales capability to drive new U.S. adding 3,760 sqft adding further potent business
Slide 17: Optimisation of cost base
5 Optimisation of cost base Operating expenses1 ● Opex expenses reduced by A$12m or 18% A$million 1HFY21 1HFY20 Change $ Change % versus pcp with the reorganization of the dermatology division delivering US$5m of Marketing & distribution 28.8 39.7 (10.9) (27%) the cost savings All other admin2 25.3
Slide 18: 1HFY21 segment and financial information
1HFY21 segment and financial information
Slide 19: Metrics Contract Services (MCS)
Metrics Contract Services (MCS) ● MCS revenue was US$27.8m, up 6% on pcp Change benefiting from new manufacturing revenues US$million 1HFY21 1HFY20 1HFY21 v 1HFY20 ● MCS supports 55+ projects across the Reported revenue 27.8 26.3 6% pharmaceutical value chain: Gross Profit 13.4 12.0 12% - 20 project
Slide 20: Specialty Products Division (SPD)
Specialty Products Division (SPD) ● SPD revenue was US$29.1m, down 6% on pcp, Change but up 32% on 2HFY20 benefiting from US$million 1HFY21 1HFY20 1HFY21 v 1HFY20 improvements to gross to net charges Reported revenue 29.1 30.8 (6%) ● Key products were impacted by unfavourable changes to managed care
Slide 21: Generic Products Division (GPD)
Generic Products Division (GPD) ● GPD reported revenue was US$78.7m, down 8% Change on pcp impacted by continued competition across US$million 1HFY21 1HFY20 1HFY21 v 1HFY20 the portfolio Reported revenue 78.7 85.3 (8%) ● Ongoing pricing pressure due to additional competition on existing portfolio wi
Slide 22: Mayne Pharma International (MPI)
Mayne Pharma International (MPI) ● MPI performance was up 10% on pcp driven by Change stronger third-party income A$million 1HFY21 1HFY20 1HFY21 v 1HFY20 ● Contract services and manufacturing revenue Reported revenue 21.3 19.3 10% increased 35% on pcp and benefited from additional formulation develo
Slide 23: Reported to underlying earnings attributable to members
Reported to underlying earnings attributable to members Reported Earn-out Drug pricing Underlying A$million Restructuring Impairment INTI NEXTSTELLIS 1HFY21 reassessment investigations 1HFY21 Revenue 208.8 1.3 210.1 Gross profit 96.9 1.3 98.2 Gross profit % 46.4% 46.7% EBITDA 40.5 (5.6) 1.9 1.4 0.3
Slide 24: Consolidated balance sheet position
Consolidated balance sheet position A$million As at 31 Dec 20 As at 30 Jun 20 Change $m ● Reduced balance sheet gearing with net debt down A$40m Cash 131.5 137.8 (6.3) Inventory 95.4 94.0 1.4 ● Net assets decreased A$266m on a Receivables 188.3 195.9 (7.6) reported currency basis driven by PP&E 205.
Slide 25: Consolidated cash flow – EBITDA to cash reconciliation
Consolidated cash flow – EBITDA to cash reconciliation Half Year ending Change ● Cash flow working capital movements based on average A$million 31 Dec 20 31 Dec 19 $m AUD/USD exchange rate for the Reported EBITDA attributable to members1 40.5 34.6 5.9 period whereas the June balance Minority share o
Slide 26: Capital structure
Capital structure ● Net debt of $221m or $210m excluding lease liabilities Net debt As at As at ● Company has A$132m of cash and A$125m of undrawn debt A$million 31 Dec 20 30 Jun 20 Change $ facilities Syndicated facility 300.1 347.7 (47.6) ● Dual currency debt facility Deferred borrowing (4.6) (3.2
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