Mayne Pharma’s FY26 results reveal a 6% revenue dip and 33% EBITDA fall, offset by strong Women’s Health momentum and a major distribution capacity boost.
- FY26 revenue down 6% to $383.7 million
- Women’s Health portfolio prescriptions grow notably
- DistributeRx expands capacity seven-fold with new facility
- Underlying EBITDA declines 33% due to legal and investment costs
- Cash position steady at $80 million
Financial Performance Highlights and Legal Cost Recovery
Mayne Pharma (ASX:MYX) closed FY26 with a 6% drop in revenue to $383.7 million and a 33% plunge in underlying EBITDA to $31.7 million, reflecting a challenging year marked by legal distractions and strategic investments. The company received a notable $14.4 million from Cosette Pharmaceuticals in June, covering court-ordered legal costs and interest related to a protracted dispute, with the appeal decision still pending. Despite the revenue decline, gross margin improved to 65%, driven by disciplined pricing and product mix.
Women’s Health Portfolio Gains Traction
The Women’s Health segment stood out as a bright spot, maintaining flat revenue in 4Q FY26 and delivering a 2% revenue increase for the full year to US$118.2 million. Prescription volumes surged, with BIJUVA® total prescriptions up 21% in the quarter and 26% over the year, while NEXTSTELLIS® demand cycles rose 16% in 4Q and 15% annually. This growth comes amid strategic commercial investment, including an 8% expansion of the sales force and targeted campaigns to boost market share from a low base. The removal of the FDA black box warning for BIJUVA® earlier in the year has supported prescriber confidence.
Dermatology Faces Competitive Headwinds but DistributeRx Expands
Dermatology revenue declined 14% in the quarter to US$22 million, pressured by generic competition, notably the recent market entry of a generic RHOFADE®, and share erosion for DORYX®. However, Mayne Pharma’s direct-to-patient distribution platform, DistributeRx, launched in March 2026, showed strong early momentum. The platform more than doubled new prescriptions year-on-year and engaged over 5,000 unique prescribers. The company is investing up to US$2 million to expand its Adelaide Apothecary facility in Lexington, Kentucky, boosting annual capacity approximately seven-fold to over 2.5 million prescriptions from early 2027. DistributeRx has also secured its first third-party commercial partnership, distributing Resilia Pharmaceuticals’ RECEDO® product, and is in talks with multiple pharmaceutical companies for further onboarding, potentially broadening its portfolio beyond dermatology.
International Segment Transition and Outlook
The International segment saw a 31% revenue decline in 4Q FY26 to $16 million, influenced by a portfolio shift towards higher-margin products and increased investment in sales and marketing, particularly for NEXTSTELLIS® in Australia following PBS approval. The segment is also exploring new manufacturing partnerships in Asia after upgrading its Salisbury facility. Mayne Pharma anticipates providing a detailed FY27 outlook alongside its audited results in late August.
Cash Position and Operational Challenges
Despite a net cash outflow of $6.7 million in the quarter, largely due to timing of payments, Mayne Pharma ended FY26 with a solid cash and marketable securities balance of $80 million. The year was marked by operational disruptions linked to the Cosette legal proceedings and increased investment in Women’s Health marketing, which weighed on profitability but aim to underpin future growth. Foreign exchange headwinds and incentive payments also contributed to the EBITDA decline.
Bottom Line?
Mayne Pharma’s FY26 results reflect a business in transition, balancing near-term earnings pressure from legal and investment costs against promising growth in Women’s Health and a bold expansion of its direct distribution capabilities.
Questions in the middle?
- How will the outcome of the Cosette appeal affect Mayne Pharma’s financial trajectory?
- Can DistributeRx scale successfully to offset competitive pressures in dermatology?
- Will increased investment in Women’s Health sales translate into sustained market share gains?