Keenova Therapeutics (MNK) Jefferies London Healthcare Conference 2024 summary

Business overview and recent performance

• Operates in specialty brands and generics, with three main U.S. brands: Acthar Gel, TERLIVAZ, and INOmax.

• Generics business achieved seven consecutive quarters of growth, with strong API production and compliance systems.

• Q3 revenue reached $505 million and EBITDA $161 million, reflecting significant operational improvement.

• Acthar Gel stabilized and forecasted to grow 10% year over year for the first time in eight years.

• Divestiture of Therakos for $925 million expected to close soon, reducing net debt to below one times EBITDA.

Strategic restructuring and financial transformation

• Underwent two restructurings, with the latest Chapter 11 completed in November 2023, significantly reducing debt.

• Post-restructuring, guidance for 2024 is $1.9–$2 billion in revenue and $590–$620 million EBITDA, excluding Therakos.

• Focused on stabilizing key brands and paying down debt to enable a return to growth.

• Net debt to EBITDA expected to fall below one after Therakos sale, a historic low for the company.

Product innovation and pipeline focus

• TERLIVAZ approved in late 2022 after a lengthy FDA process; EVOLVE nitric oxide delivery system approved end of 2023.

• Acthar SelfJect, a self-delivery device, launched in August, with over 800 scripts and 70% for new patients.

• Pipeline strategy centers on controlled substances and hard-to-formulate products, aiming for 2–3 new launches per year.

• No plans to expand into commodity generics or significantly broaden the pipeline.