Fireside Chat

Q:From costs and and you know are there further cost reduction that youcan achieve in in the second-half and and you know your your cashrunway please.

A:Sure.

Well, so we had targeted cost reductions that we identified andwe've implemented against those.At the same time when we acquiredRhofade and we have the global ownership of that brand, we increasedsome of our costs associated with that pharmacovigilance and thingsof that nature.We have good margin on that brand, but so they've beenas we've brought in, we've done 10 launches in dermatology sinceOctober and that's added some to the cost structure.

But on a going forward basis, we maintain a discipline in ongetting the right ROI on our marketing and obviously reducing costswherever it's not efficient to drive and profitable growth

Q: understood and your cash runway.

A:So we reported 145.6 million I think in in cash at the halfperiod and most of the cash that we have the $19 million that wasspent in the first half on continued business winding that down andand we're experiencing as we targeted the the in the second-half thatour cash flow the only the burn on the cash flow has been associatedwith those discontinued operations and that we're getting positivecash flow now, the continuing operations.So we don't see cash as anissue for the business at all.

Q:Understood.

So, so there are further amounts of cash to pay relating todiscontinued businesses or not,

A: yes, but they're winding down, but they'll still continue.

The biggest one really is future returns on generics that we soldprior to the sale of the business.

Q:Understood, understood.

And you know as you continue to grow hopefully in both women'shealth and in dermatology, I'd like to sort of understand yourcommercial infrastructure to support that growth.

You know do you plan to, how do you continue to plan to grow inboth of those segments please.

A:So the we have 42 reps in dermatology for managers out there andthat size is working well for the demand creation that we're doingwith the calling on the customers and achieving the and then alsodoing the channel strategy.

So we don't see for our current infrastructure of product that wehave that we have to add to the commercial footprint to drive, drivewhat we have in our hands forward.

And as we do more and more what I would call Co you know profitshare deals where we take somebody else's product and drive itthrough our channels, there's real no need to actually increase theinfrastructure there.

On the women's health with four brands, we're we're pretty maxedout with our commercial infrastructure with 85 reps and 9 to 10managers now across the country and we last year we added in eightmedical science liaisons to to educate the market on the benefits ofNextelis and hormonal therapy both in contraception and in inmenopause.So if we end up with any new products in women's health, itmay require us to look at our ability to reach the right customersand increase the size of the commercial footprint.

Q:Understood, understood.

And to that end then it sounds like, you know, you might beconsidering acquisitions of new products going forward.

A:We, we, we think we're in a good position to continue to bringin products that are accretive to the business in women's health andthere's opportunities in the marketplace unfortunately women's healthhas not done well and there's many companies that have gone bankruptin the US market and and we're taking a tack that prevents that.

Q:Understood, understood, understood.

And you know there's been, there's been impacts on multiplecompanies because of this, this change health outage and and youmentioned that in the last presentation that you gave to the marketthat that had impacted use. Can you sort of clarify?The impacts forus on that change health outage,

A:sure. Well, a lot of our transaction in dermatology are in a cashbasis so there was no impact whatsoever to dermatology and across our

portfolio which we shared at the at the priorpresentation, we saw a dip from into March, February and March andback up to the line, the slope of the line we had going in April. Soas I communicated earlier when we look at the number of cycles wewere we calculated 46,000 plus cycles in the month of April which isback on track on the slope we were. So the it's really hard for us tocalculate if you just you know fill in the area between the twolines.It's roughly $340,000 worth of business.

What we don't know is what how many patients did you lose that area lifetime lost that happened during that transaction but it'simmaterial from what we can see right now for our business.

Q:So, so to be fair to say that it won't have a material impact onMayne Pharma earnings and cash flow in the half,

A:correct. Yeah, not at all.

Q:But we we did see, you know, quite a severe share price reactionafter that.

Do you think that's, do you think that was causing it?

A: Misunderstanding thing in the marketplace because if you Googlechange healthcare and the impact it's having on the healthcare marketin total, it's still having an impact for many, many parts of thehealthcare system, but it didn't have a material effect to us.

Q:Understood.

And in terms if we move, if we switch over to to Women's Health,you know you've you've in licensed quite a few products.You've gotAnnovera, you've got Bijuva, you've got Imvexi all a year and a halfago, about a year and a half ago.How are they?How are they performingrelative to your expectations when you bought them?

A:Well, one of the things we communicate the market was to be ableto pay for them in less than four years and we're still on track todeliver on that, which I think is important to demonstrate that wecan do deals, execute on the deals and and get the IOR that we wantto deliver for that.

The we, you know we have good patent protection for all threebrands from 2032 to 2039.

Annovera is had supply constraints in the past and it's still atenuous situation for us in the future as we you know the demandscoming up quite nicely now for Annovera and and we just got to managemake sure that we can improve our supply situation over time.

Q:Yeah.

So how do you do that?

A:How do working with our partner SPS and and making sure that allthe all the materials it's a different, it's a handmade product, it'svery intensive to make.

Yeah.

Q:And then so what other initiatives is Maine working on to to seegrowth in these products greater than what you had before?

A:So the on the long term we see the opportunity currentlyAnnovera is used intermittently, the patient takes it out.The US Armyrecommends the patients to just keep it in. That's not on label, butwe want to provide the FDA data this demonstrates that that'sbeneficial to the patients because then you're not spiking theestrogen up every month and they have a you know contraception thatprotection without the convenience of inconvenience of taking it outin and out on a monthly basis.

And in other products Bijuva coming the market with a halfstrength is allowing the patients to get the right dose for theirmenopausal symptoms and you know the menopausal markets becomeenriched in the last 12 months, there's a lot of noise on the nonhormonal options there and we're using our MSL team to educate themarket on the benefits or hormones both in contraception and inmenopause.

Q:I can't believe it's taken me this long to ask about Nextellis,but I'm going to do that.

I mean is that still the sort of primary growth driver in in thewomen's health segment in your view? A: in the in the near term it'sit's the strongest growth driver for the business.

A:We we have nominalmarket share. We have the fortunate thing, we have 4 great compounds.

They're leading compounds in the in the in the categories theymarket against and and just you know it's unfortunate you know withthe uniform black box labeling that you get out of the FDA for oralcontraceptives. The unique features of having a selective naturalestrogen did not come through on the label, but it's coming throughon the product performance.

Certainly it's there in the data.

That shows that it's, you know, less effect on cholesterol, lesseffect on breast tenderness, less effect on weight gain and acne. Andthose are significant benefits for women taking oral contraception.

Q:And there's been some public developments in relation to Mithraover the last couple of months, including that, you know,monetization process.Perhaps you could explain to everyone, you know,your relationship to Mithra and and how that has impacted MainePharma.

A:Sure. One thing we did, we actually built up inventory ofNextelis as we saw the the risk of the business developing for Mithraand then in addition to that, we built up inventory because we weregetting an additional API approval from Gideon Richter for April andif that didn't come through, we want to be fully protected againstthat. Fortunately that did come through on our April approval fromthe FDA on.So we're in good position with the stock and inventory forsamples and commercial product.We have almost a year supply right nowand the monetization process that I think they just made anannouncement that they were extending their timeline with the withthe courts to move that forward.

We are working diligently to make sure that we not only protectour business but improve our commercial terms for Nextelis throughthis process understood.

Q: And and my last question is we're getting the wind up here youyou at the at the first half results you you mentioned that you knowin addition to achieving that break even run rate on Nextellis you'veyou've seen some price improvement and and so trade cycle growth.Youknow has that has that trade cycle growth continued into thesecond-half, what can you say about that?

A:So the trade cycles are up 20% in April from from what we exitin December and we were up 33% on the half over the previous half. Soit's still growing the what you know you see in GTN and isseasonality in the first quarter you generally see GTN go downslightly because patients have haven't met their Copay minimums, yesbut overall, you know the stability of the GTN is, is there.

We're staying at quite a narrow range and so we're really happy onthat performance.

Q:Great. Well, we've got the wind up.We're going to have to finishit there, but thank everyone for.

A:Thank you, David.