Mayne Pharma losses blow out to $317 million
Salisbury pharmaceutical company Mayne Pharma has seen its losses worsen by almost $100 million after a financial year of “significant change”.
Photo: Mayne Pharma.
While Mayne Pharma’s revenue received a bit of a boost to $183.6 million in the fiscal year, net losses worsened by 44 per cent to $317.4 million.
CEO Shawn Patrick O’Brien says the company has been ‘successfully refocused’ around core areas of women’s health, dermatology and its international operations during the year.
As such, FY23 has been “one of significant change at Mayne Pharma”, but group earnings were in the red at $102 million – down from a positive result of $9 million last year.
The CEO says the dermatology division had a “disappointing performance” in the first half but rebounded in the last six months due to consistent sales, a stabilised pricing environment and the launch of a new product.
The business as a whole was cash flow positive in the second half, but not enough to outrun first half results taking the full year net operating cash outflow to $42.7 million.
The latest loss follows a $263.3 million loss in FY22, a $201 million net loss after tax in FY21, and a $92 million loss in FY20.
“We ended the year with net cash of $172.6 million, compared to net debt of $317 million at the end of FY22, and nearly half a billion net cash improvement,” O’Brien said.
“Going into FY24, we will continue to maintain a conservative capital structure, allowing us to deliver strong operational and financial performance while we finish working through the final accounting matters associated with the three major transactions we closed during FY23.”
Those ‘major transactions’ were the divestments of the US Retail Generics portion of its Portfolio Products division and contract development organisation Metrics Contract Services, as well as the exclusive licensing of the women’s health expansion portfolio.
This meant Mayne Pharma – one of the state’s top 20 companies according to the 2022 SA Business Index – was able to pay a $47 million special dividend and buy back shares on market.
“With accelerating sales momentum and ongoing cost discipline, Mayne Pharma enters FY24 well positioned for sustainable long-term growth,” CEO O’Brien said.
“As we target positive annual operating cash flow, we will continue seeking accretive opportunities to expand our portfolio and strengthen Mayne Pharma’s market position in women’s health and dermatology.
“We maintain our conservative approach to capital management.”
