Moving right along,
I’vebeen intrigued by the dermatology model for a few years now and its’evolution has been full of surprises along the way, not all of thempositive. However, I think I now have enough pieces of the puzzle topiece it together. I think significant positive contributions from AGSoolantra and branded Wynzora (we won’t know until August 24) willbe the last pieces I need.
Thefirst surprise was how quickly Mayne was able to achieve significantmarket share in 2-3 months for **sorica,(49%), gEpiduo Forte (49%),gAczone (35%) but this didn’t translate into any meaningful profit.So, first clue the distribution channel(s) work well, as well as theaccess to them by the physicians. Second clue, the range of genericsare there to provide a full suite of medication for the physician totreat his/her patients rather than making big profits. This locks inthe physicians with loyalty to Mayne’s distribution system.
Thesecond surprise (shock actually) was negative revenue in the firsthalf of FY2023 which has been described as poor commercial practisesand lack of co-pay monitoring in an environment where clients aremostly cash payers rather than insured. Recent claims and performancesuggest that more rigorious systems are now in place to stop thishappening again.
Thethird surprise (now positive) is once again the quick gain in marketshare for Rhofade (89%), Ag Oracea(69%), DoryxMC(40%) in the mostrecent reports but this time the contribution to profit issignificant, indicated by the fact that the first two drugs make up60% of the dermatology profit. So the third clue, it’s the brandedor Autorised generics that make significant profits.
So,the next chapter (yet to be written) is Ag Soolantra and brandedWynzora.
Ihave discovered that Wynzora (treatment for plaque psoriasis) is adrug developed by MC2 a Danish company which sold the distributionrights in Europe to Almirall (large dermatology company in Europe)for €15Mas well as milestone payments and double digits royalties. Also inSeptember 23, it also sold the rights for distribution in China toHuangong for US$16M plus potential milestone payments of US$36M anddouble digits royalties.
Mypoint is that we have acquired these rights in fordistribution in the USfor no cash upfront (that I am aware of) and all that has been saidis that we have entered intoa partnership with MC2.Of course the details of that partneship are unknown however a strongshowing of profit in this regard in August will seal the deal for methat Mayne Pharma is on a winner with this model andwill attract more branded products and authorised generics in future.
Cheers
(20min delay)