Mayne Pharma’s DistributeRx Launch Drives Prescription Growth and Cash Surge

DistributeRx Launch Surpasses Expectations

Mayne Pharma (ASX:MYX) kicked off 3Q FY26 with a bang as its newly launched DistributeRx platform dramatically outperformed internal prescription volume forecasts by 72%. Despite the sales force being only 70% of target headcount, DistributeRx processed around 6,400 prescriptions in March, representing a 73% increase over the prior month and a 92% jump compared to the same period last year. This healthcare solutions business, which streamlines prescription distribution for dermatology products, has already added approximately 1,600 new prescribers, with existing prescribers increasing their prescription volumes by over 80% relative to pre-launch levels. The platform currently offers a portfolio of 31 Mayne Pharma dermatology products alongside 178 non-Mayne Pharma items, positioning it as a significant growth driver for the company.

Within the dermatology segment, generic ACCUTANE® gained market share, rising from 51% to 61% against competitors, supported by a strategic digital health partnership. Other products like RHOFADE® and TWYNEO® maintained steady performance, with TWYNEO® benefiting from favourable formulary coverage accelerating patient access. However, AG ORACEA® continues to face generic competition, holding a 47% market share. Overall, dermatology revenue grew modestly by 1% to US$20.5 million, but gross profit surged 34% to US$12.8 million, lifting gross margin 16 percentage points to 63%, and direct contribution jumped 55% to US$4.7 million.

Women’s Health Portfolio Gains Momentum

Mayne Pharma’s Women’s Health segment also delivered solid growth, with total prescriptions for BIJUVA® up 30% and NEXTSTELLIS® demand cycles rising 12% compared to the prior corresponding period. BIJUVA® benefitted from a regulatory boost when the FDA updated its boxed warning in February 2026, removing references to cardiovascular risk, breast cancer, and probable dementia. This label change is expected to enhance healthcare provider confidence and prescribing rates, although a temporary supply disruption in late April may briefly temper sales. NEXTSTELLIS® net sales increased 19% to US$11.7 million, supported by ongoing marketing efforts and field force optimisation.

The Women’s Health business reported revenue of US$26.4 million, a 7% increase, with gross profit up 8% to US$21.1 million and a stable gross margin of 80%. Direct contribution rose 6% to US$7.1 million. The company plans to prioritise investment in this segment, especially targeting women earlier in their treatment journey to capture growth opportunities in the expanding menopause market.

Financial Performance Reflects Operational Discipline

Group revenue edged up 1% to A$85.2 million, while gross profit rose 8% to A$53.4 million, lifting gross margin by 400 basis points to 63%. Total direct contribution improved 11% to A$17.9 million, underpinned by the dermatology segment’s gains and disciplined operating expense management. Underlying EBITDA loss narrowed 57% to A$1.4 million, reflecting improved earnings quality. The company’s adjusted operating cash flow from continuing operations nearly doubled to A$28.3 million, driven by timing effects on gross-to-net cash payments expected to settle in the coming quarter. This strong cash generation boosted net cash flow to A$19.3 million and lifted cash and marketable securities by 29% to A$86.7 million since December 2025.

Mayne Pharma’s CEO Aaron Gray, who took over leadership earlier this year, highlighted the launch of DistributeRx as a tangible execution of the company’s disintermediation strategy, delivering prescription volumes well ahead of plan. This momentum, combined with regulatory tailwinds from the FDA’s hormone therapy label update and robust cash flow, sets a positive tone entering the final quarter of FY26. Gray’s leadership continuity follows his elevation from CFO earlier in 2026, a transition noted for its smoothness and strategic steadiness.

International Expansion and Capital Strategy

Internationally, Mayne Pharma saw revenue rise 19% to US$17.7 million, led by NEXTSTELLIS® sales growth following its PBS listing in Australia and expanded distribution of KADIAN® in Canada. NEXTSTELLIS® prescriptions in Australia surged approximately 160% in 3Q FY26 compared to the previous quarter, reflecting growing patient and prescriber awareness. The company is also exploring new manufacturing partnerships in Asia, leveraging its recently upgraded Salisbury facility, and plans to engage with stakeholders at upcoming conferences in Japan, China, and Korea.

Looking ahead, Mayne Pharma aims to sustain growth in Women’s Health and Dermatology through targeted commercial investments and further build-out of the DistributeRx ecosystem. The company is actively considering capital allocation options, including a potential on-market share buy-back, while pursuing capital-efficient business development opportunities. This approach suggests a focus on balancing shareholder returns with reinvestment in growth areas.

While Mayne Pharma’s 3Q results show encouraging operational progress and financial discipline, the temporary supply disruption for BIJUVA® and the timing of gross-to-net cash payments introduce some near-term uncertainty. Investors will be watching how these factors play out alongside the company’s strategic initiatives and regulatory developments.

Mayne Pharma’s recent leadership transition and ongoing legal disputes over acquisitions add layers of complexity to its path forward, underscoring the importance of execution in translating commercial momentum into sustained profitability. The company’s ability to scale DistributeRx and capitalize on regulatory tailwinds will be critical to watch in the coming quarters.

For additional perspective on Mayne Pharma’s leadership changes, see the CEO transition details. The company’s prior efforts to boost dermatology earnings and launch new products provide useful context for the current momentum in that segment, as outlined in the FY25 EBITDA growth report.