Ann: Mayne Pharma Market Update, page-27

Hey Patrick
I'll say upfront that it is WH growth that this company needs to really impress the market but having said that, I'm expecting a very good report from Dermatology. The latest update indicated not only that the profit margins are being maintained but that the branded products are gaining market share.
In 1HFY24 Dermatology reported a contribution of A$18.1M and A$7.2M of that was just Rhofade in three months, so given that Rhofade has actually increased market share in the second half and six months of further contribution, I think Rhofade alone will add a further A$14-A$16M in contribution and A$18M in revenue (gross profit 83% for this product is remarkable). Add to that growth of other Ag and Branded products such as Soolantra, Oracea and Doryx MP 60 and I think our Dermatology business will end the year with revenue of about $180M and contribution of A$45-$50M an outstanding result.
As a side note I would add that it also shows that the generics in our portfolio hardly make a positive contribution and are only there as loss leaders to get the Dermatologists to prescribe our branded products which is where the contibution is for Mayne Pharma. Going forward, we need more branded products like Rhofade in our portfolio and that will cost money.

And just a further note on cashflow, yes I'm expecting negative cashflow for the second half (in total). Maybe A$5-15M positive for ongoing operations and maybe negative A$15-25M for the rest. Negative $10M is my mid range estimate, but that will still leave us with about $130M (cash +short term securities)