Mayne Pharma Group (MYX) Investor update summary

Company Transformation and Business Model Evolution

• Transitioned from a retail generics-focused company to a differentiated branded pharmaceutical business, with women's health and dermatology now the largest revenue contributors due to strong growth and margin profile.

• Branded product sales represent 84% of net sales in 1H FY26, driving gross margin expansion to 65%.

• Achieved a 76% increase in direct contribution year-over-year, emphasizing profitable growth and improved gross margin through a higher mix of branded products.

• U.S. operations, especially in dermatology and women's health, are the primary revenue drivers, with a significant presence in both the U.S. and Australia.

• FY25 sales reached $408.1 million, with $47.0 million underlying EBITDA and $67.4 million in cash and marketable securities as of December 2025.

Disintermediation Strategy and DistributeRx Launch

• Disintermediation removes intermediaries (wholesalers, PBMs, payers) in the U.S. pharma channel, increasing non-wholesale prescription volumes to 59% in 1H FY26 and improving gross-to-net outcomes.

• DistributeRx, a wholly owned subsidiary, enables direct manufacturer-to-patient transactions with transparent and predictable pricing, reducing product abandonment and supporting cash-pay fulfillment via Adelaide Apothecary.

• DistributeRx contracts directly with manufacturers, engages clinicians, and routes prescriptions efficiently, offering cash pricing when insurance is unavailable.

• Benefits include tighter inventory control, lower fees, improved gross margins, and higher patient compliance.

• The model is capital-light, highly scalable, and leverages existing staff and infrastructure with minimal incremental costs.

Market Opportunity and Operational Scalability

• The U.S. cash pay market for pharmaceuticals is projected to reach $252 billion by 2030, with increasing consumer adoption of digital pharmacy and home delivery.

• Cash market for prescriptions has doubled in three years, with 61% of insured individuals paying out of pocket in 2022.

• DistributeRx operates a capital-light, scalable model, utilizing existing resources and infrastructure.

• 59% of group volume in H1 FY26 went through non-wholesale channels, and cash-paying prescriptions have grown at an 83% CAGR since FY23.

• Direct-to-patient and virtual pharmacy fulfillment markets are expanding, driven by digital adoption and telehealth.