Australia - Mayne Pharma Group Limited (ASX: MYX) provides an update on trading for the first quarter of FY24 (Q1 24).

This information is based on unaudited management accounts and is provided on continuing operations following the disposal of Metrics Contract Services (MCS) and US Retail Generics businesses during FY23. Mayne Pharma generated revenue of $A92.3 million, an increase of 35% on Q4 23 driven by strong growth in Net Sales in the BPD/Women's Health and Dermatology segments. Gross Margin of A$53.4 million was 81% higher than Q4 23.

Each operating segment BPD/Women's Health, Dermatology, and International generated positive Direct Contribution (Gross Margin less direct selling expenses). Operating EBITDA which includes direct and indirect allocated operating expenses was a loss of A$0.18 million, a significant improvement on Q4 23 which was a loss of $A18.6 million. This result reflects tight cost control in both direct and indirect costs and revenue leverage. 'Cash' EBITDA is a new metric that includes the impact of earn out liabilities/royalties and lease payments. This metric improved from a loss of A$19.5 million in Q4 23 to a loss of A$1.7 million in 1Q 24.

Outlook

Mayne Pharma confirms that it expects all three business segments to deliver positive contribution margin in FY24, with positive EBITDA and operating cash flow for the Group.

The targeted breakeven run rate for NEXTSTELLIS is expected to be achieved by the end of 1HFY24, with the impact of lower cost offsetting the lagging script growth, and an expected stabilisation of net selling price. The cost and efficiency program will continue through the year to drive financial returns.

The Board will seek shareholder approval to increase the on-market share buy-back to up to 15% of issued capital in the 12 months following the AGM and expects to increase the pace of execution.

Mayne Pharma CEO Shawn Patrick O'Brien said: 'We are very pleased to report the progress of Mayne Pharma as we continue our transition phase and simplify our business. The first quarter of FY24 reflects the hard work undertaken to improve operating performance and drive revenue and margin. Our team are engaged to deliver on the potential of our portfolio in the markets we operate in.'

Board Chair Frank Condella said: 'The Board is encouraged with the trends seen during the first quarter of FY24. We are focussed on revenue growth and reducing costs. The Board expects cash generation from operations to improve moving into the second half of the year and this will support our planned expansion of the on-market share buy-back program.'

Following the acquisition of rights to ANNOVERA, IMVEXXY, BIJUVA and RHOFADE, Mayne Pharma has a portfolio of products that will generate positive EBITDA and cash flow in FY24. The Company is focussed on growing returns from its current suite products and maximising the value of its existing pipeline and commercial relationships and does not currently intend to deploy capital on acquisitions. Mayne Pharma's CEO Shawn Patrick O'Brien and CFO Aaron Gray will host a webcast for investors and analysts today (Wednesday, 18 October) at 10.00am AEDT.

Contact:

Craig Haskins

Tel: +61 421 029 843

Email: ir@maynepharma.com

About Mayne Pharma

Mayne Pharma is an ASX-listed specialty pharmaceutical company focused on commercialising novel pharmaceuticals, offering patients better, safe and more accessible medicines. Mayne Pharma also provides contract development and manufacturing services to clients worldwide. Mayne Pharma has a 40- year track record of innovation and success in developing new oral drug delivery systems. These technologies have been successfully commercialised in numerous products that continue to be marketed around the world.

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