Legal Costs and Competition Cloud Mayne Pharma’s Strong FY25 Earnings Growth
Mayne Pharma delivered a robust FY25 performance with a 105% surge in underlying EBITDA and launched key dermatology products as it outlines a strategic growth path for FY26.
- 105% increase in underlying EBITDA to $47 million in FY25
- Revenue growth to $408.1 million, up 5% from FY24
- Launch of TWYNEO® and EPSOLAY® dermatology products in Q1 FY26
- 1H FY26 shows resilient earnings with margin improvements despite slight revenue dip
- Strategic focus on market share growth, disintermediation, and international expansion
Strong FY25 Financial Performance
Mayne Pharma Group Limited reported a significant financial turnaround in FY25, with revenue climbing 5% to $408.1 million and underlying EBITDA more than doubling to $47 million. This 105% increase in EBITDA was driven by targeted operating expenditure and revenue growth, particularly in the Women’s Health segment, which saw a 76% increase in direct contribution. Operating cash flow from continuing operations surged 460% to $45.4 million, reflecting improved operational efficiency and cash management.
Product Portfolio and Market Dynamics
The company’s portfolio growth was underpinned by strong demand for NEXTSTELLIS®, which experienced a 30% increase in demand cycles, fueled by new patient starts and repeat prescriptions. Licensed products such as ANNOVERA®, IMVEXXY®, and BIJUVA® also contributed with a combined 17% growth in demand. Despite competitive pressures, including the launch of AG ORACEA®, Mayne Pharma maintained gross margin levels through pricing strategies and product mix optimization.
Dermatology Expansion and New Product Launches
In Q1 FY26, Mayne Pharma launched TWYNEO® and EPSOLAY®, expanding its dermatology portfolio. The dermatology segment showed strong margin improvement and operating leverage, with direct-to-patient revenues through the Adelaide Apothecary channel growing 63% year-on-year. The company is advancing a disintermediation strategy aimed at improving patient access and outcomes, with further initiatives planned for the second half of FY26.
1H FY26 Results and Strategic Outlook
The first half of FY26 saw resilient earnings with revenue slightly down 0.5% to $212.1 million but gross margin improving to 66%. Underlying EBITDA declined 8% to $28.6 million, impacted by increased investment in sales activities and legal costs related to ongoing litigation and scheme legal fees. Mayne Pharma’s strategic priorities for FY26 include continuing market share growth in Women’s Health, leveraging the dermatology ecosystem, unlocking international business value, enforcing legal agreements, and pursuing capital-efficient acquisitions.
Operational Enhancements and Manufacturing
Operationally, Mayne Pharma completed a modernization upgrade to its manufacturing capabilities, enhancing production efficiency and delivery performance, with on-time delivery rates improving to 96.5%. The company also expanded a key contract for a new 200mg format of KADIAN® in Canada, targeting indication expansion beyond pain management.
Bottom Line?
Mayne Pharma’s strong FY25 momentum and strategic initiatives set the stage for growth, but legal costs and competitive pressures remain key watchpoints.
Questions in the middle?
- How will Mayne Pharma’s new dermatology launches impact market share and revenue in FY26?
- What is the potential financial impact of ongoing legal and litigation costs on future cash flow?
- How effectively can the company execute its disintermediation strategy to improve patient access and margins?
