Mayne Pharma has more than doubled revenue as women’s health loses its taboo

Celebrity-led talk about menopause and other women’s health issues is providing a boost for Mayne Pharma, which has more than doubled its annual revenue.

Former US First Lady Michelle Obama has been honest about the struggles related to menopause.

Open and honest discussions around women’s health issues including menopause, sparked in part by no less than former US first lady Michelle Obama, are driving interest in Mayne Pharma’s suite of women’s health drugs and bringing an associated revenue surge.

The drug maker reported a more than doubling in revenue for the past financial year, up 112 per cent to $388.4m, and underlying earnings of $22.9m, with the company’s two major divisions of dermatology and women’s health both firing.

The statutory result was a net loss of $168.6m, with a series of one offs including a $33.2m class action settlement and $82.7m in earn-out reassessments contributing.

The dermatology division grew revenue more than threefold, up 207 per cent to $174.9m, with a solid contribution from the company’s relatively new compound Rhofade which it acquired in September last year.

Women’s health was up 131 per cent to $142.8m, driven by the Nextstellis birth control drug, as well as the company’s Bijuva menopause treatment.

Nextstellis was up 113 per cent for the year to $US30.1m, with chief executive Shawn Patrick O’Brien saying the company had repositioned the product in the market, and it was getting good traction with physicians due to a lower incidence of side effects such as weight gain.

On the menopause front, Mr Patrick O’Brien said the topic was now regularly being discussed in the media by high profile celebrities including Michelle Obama.

This was driving women to have conversations with their doctors, which naturally led to a higher uptake of treatment options.

“You tell me any famous celebrity that’s over 45 in the United States that’s not talking about menopause,’’ Mr Patrick O’Brien said.

“It’s been a misdiagnosed, under-treated market, Bijuva is ideal in this marketplace, and then we have Imvexxy for vaginal dryness.

“We have four products in women’s health which we call best-in class (including Nextstellis).’’

Mr Patrick O’Brien said the dermatology division had been undertaking a total turnaround, which had been accentuated by bringing in Rhofade.

“We purchased that product for $US8m, in the first quarter we had $US8.6m in revenue, we did $US29.6m in the first nine months of that product,’’ Mr Patrick O’Brien said.

“We have a $US40m-plus run rate product there so you’re going to see the full benefit of that this year.’’

Mayne does not give specific guidance on profit, but Mr Patrick O’Brien said the focus would be on building on the success of FY24.

“We have a clear objective here,’’ he said.

“This was about turning around this company which was virtually bankrupt, getting rid of the debt, improving the cash position ... we’re way more efficient, and the goal is to create a sustainable company that’s a growth business driven by US women’s health and US dermatology.

“We see these areas as having been neglected by big pharma, which creates an opportunity for a small nimble company like ours to drive through it.’’

Mayne shares rocketed on the result, trading more than 9 per cent higher at midday to $4.30.

The company had net cash of $149.3m at the end of the financial year. It did not declare a final dividend, in line with last year.

Originally published as Mayne Pharma has more than doubled revenue as women’s health loses its taboo