Mayne Pharma Group Limited

Group revenue was $383.7 million, down 6% versus FY25's $408.1 million, with foreign exchange a major headwind. Gross margin expanded to 64.7%, up 411 basis points, and gross profit was $248.1 million, essentially flat year over year. Underlying EBITDA was $34.2 million, down 27% from $47 million in FY25; reported EBITDA was $141.4 million versus $18.4 million in FY25, affected by one-offs and the release of earn-out liabilities. Operating cash flow from continuing operations was $24.9 million, adjusted operating cash flow was $34.5 million, and cash and marketable securities ended at $80 million, down from $100.4 million a year earlier. Looking ahead, management did not provide formal revenue or EBITDA guidance, but said DistributeRx numbers would likely be shared at the first half of FY27, gross margins should improve in FY27, and one-off costs should be lower year over year. They also flagged support from higher NEXTSTELLIS coverage, continued menopause investment, and international growth tied to the PBS listing and Salisbury capacity expansion.

Aaron Gray framed FY26 as a year of resilience amid distraction from the Cosette transaction, legal matters, and organizational change, while stressing that the company strengthened its commercial foundation. He highlighted the reworked women's health sales force, the launch of DistributeRx, and the expanded focus on menopause as key strategic moves. His tone was constructive and confident, repeatedly pointing to FY27 as a year to convert the groundwork into durable profitable growth.

Griffin Buchanan emphasized that the reported revenue decline was driven by FX, dermatology insurance coverage loss, competitive erosion, and the international portfolio mix shift, while gross profit held flat at $248.1 million. He pointed to $34.5 million of adjusted operating cash flow and said the decline in cash to $80 million from $100.4 million was mainly due to discrete litigation, royalty, and earn-out payments, including $12.6 million of Cosette litigation and transactional costs, $12.5 million in royalties, and a $10.3 million TWYNEO/EPSOLAY earn-out payment. He also said the FY26 EBITDA increase versus the July outlook reflected a change in how share-based retention expense was treated.

Analysts focused on the DistributeRx manufacturer pipeline, menopause economics, gross margin trajectory, and TWYNEO/EPSOLAY performance. Management said seven additional manufacturers covering 13 products are in negotiation, expects to convert a significant percentage in the near term, and plans to give the market more detail on DistributeRx numbers at 1H FY27. On menopause, Aaron Gray argued that removal of the black box warning, rising awareness, and current low HRT penetration create room for meaningful growth; on margins, he said FY27 gross margins should improve as covered-script mix rises, ANNOVERA returns are addressed, and the business benefits from fewer cash scripts and more covered lives. On TWYNEO and EPSOLAY, management said they are tracking basically on plan and have helped lift dermatology margins, though TWYNEO lost some coverage and may face pricing pressure in FY27.