Competitive Pressures Test Mayne Pharma Despite Strong Earnings Growth
Mayne Pharma Group Limited reported a robust FY25 with a 5% revenue increase to A$408.1 million and a 105% surge in underlying EBITDA, driven by strong growth in Women’s Health and strategic acquisitions in Dermatology.
- Revenue rises 5% to A$408.1 million
- Underlying EBITDA doubles to A$47.0 million
- Women’s Health segment grows 23%, driving margin expansion
- Acquisition and launch of TWYNEO® and EPSOLAY® dermatology products
- International revenue up 7% with manufacturing upgrades
Strong Financial Performance Amid Competitive Pressures
Mayne Pharma Group Limited delivered a solid FY25 financial performance, reporting a 5% increase in revenue to A$408.1 million and a remarkable 105% jump in underlying EBITDA to A$47.0 million. This growth was underpinned by improved gross margins, which rose to 60.6%, reflecting a favourable product mix and operational efficiencies despite ongoing competitive challenges, particularly in the Dermatology segment.
Women’s Health – The Growth Engine
The Women’s Health division was a standout contributor, with revenue climbing 23% to US$115.5 million. Key products such as NEXTSTELLIS®, BIJUVA®, and IMVEXXY® saw significant demand increases, with NEXTSTELLIS® demand cycles growing 30% year-on-year and net sales up 41%. Strategic investments in sales execution, marketing refreshes, and channel management helped drive these gains, alongside a successful resolution of temporary supply constraints for IMVEXXY®.
Dermatology Segment – Navigating Competition with Innovation
While Dermatology revenues declined slightly due to competitive launches and insurance coverage losses, the segment improved its gross margin to 53.8% through a refined product mix and a disintermediation channel strategy that increased direct sales. The acquisition of TWYNEO® and EPSOLAY® from Sol-Gel Technologies, launched in Q1 FY26, adds promising new branded treatments for acne and rosacea, protected by FDA Orange Book patents until 2041, positioning Mayne Pharma for future growth in this space.
International Expansion and Operational Enhancements
The International segment posted a 7% revenue increase to A$75.6 million, supported by an expanded exclusive distribution agreement for KADIAN® in Canada and completion of a modernised, FDA- and TGA-compliant manufacturing facility in Salisbury. These investments aim to enhance production capabilities and open new revenue streams, reinforcing Mayne Pharma’s global footprint.
Outlook and Strategic Focus
Looking ahead, Mayne Pharma plans to continue leveraging its channel strategy to improve access and reduce friction for patients and prescribers. The company is also focused on maximising the value of its Women’s Health portfolio through targeted marketing and scientific engagement, while exploring capital-efficient growth opportunities. The ongoing Scheme of Arrangement with Cosette Pharmaceuticals remains a key development, with strong shareholder support and court proceedings scheduled.
Bottom Line?
Mayne Pharma’s FY25 results set a strong foundation, but competitive dynamics and integration of new acquisitions will test its growth trajectory in FY26.
Questions in the middle?
- How will Mayne Pharma sustain momentum in Women’s Health amid evolving market dynamics?
- What impact will the new dermatology products TWYNEO® and EPSOLAY® have on revenue and margins?
- How might the outcome of the Cosette Pharmaceuticals Scheme influence Mayne Pharma’s strategic direction?
