ASX All Ords healthcare share Mayne Pharma Group Ltd (ASX: MYX) is down again on Friday as investors continue to digest the company's unaudited FY23 full-year results released yesterday.
The Mayne Pharma share price is currently $3.33, down 9.2%. In earlier trading, it fell to an intraday low of $3.01, down 18%.
Yesterday, the ASX All Ords share took a 23% dive after the financial figures were released.
This is adding up to a two-day tragedy for Mayne Pharma. At its intraday low today, the ASX All Ords share was 36% down on Wednesday's closing price.
Ouch.
FY23 was a year of transformation for Mayne Pharma. The company is seeking to narrow its focus within the healthcare sector to primarily women's health and dermatology.
Let's review the key points of the healthcare company's report.
Two-day tragedy for ASX All Ords share
Let's start with the good news.
Mayne Pharma said it achieved reported revenue of $183.6 million in FY23, up 17% on FY22. The reported gross profit was $83.5 million, also up 17% on FY22.
The company improved its net cash position in FY23. As of 30 June, it had $172.6 million net cash compared to net debt of $317 million at the end of FY22.
But the reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at a loss of $102 million for FY23. This compares to a positive EBITDA of $9 million in FY22.
Mayne Pharma reported a net loss after tax of $317.4 million, down 44% on FY22.
Shareholders will receive no final dividend.
Steps toward company transformation
Mayne Pharma is seeking to become a specialty pharmaceutical company with a leading position in women's health and dermatology.
To this end, in FY23, the company sold its Metrics Contract Services business for US$475 million and its US retail generics portfolio business for US$90 million.
Mayne Pharma spent US$140 million buying the exclusive US license to a portfolio of on-market women's health products (ANNOVERA, IMVEXXY and BIJUVA) and prenatal vitamins.
During the year, the company paid a fully franked special dividend of 2.72 cents per share and commenced a share buyback of up to 10% of issued capital.
A year of 'significant change': CEO
Mayne Pharma CEO Shawn Patrick O'Brien, who joined the company in October 2022, said:
Fiscal year 2023 has been one of significant change at Mayne Pharma.
With accelerating sales momentum and ongoing cost discipline, Mayne Pharma enters FY24 well positioned for sustainable long-term growth.
Mayne Pharma said it anticipated returning to positive EBITDA and cash generation in FY24.
Recent history of this ASX All Ords share
The Mayne Pharma share price is down 21% in the year to date. The ASX All Ords healthcare share has tumbled 41% over the past 12 months.
By comparison, the S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen 1.4% over the same period.
