Mayne Pharma sees strong dermatology growth despite revenue and EBITDA decline

Mayne Pharma Group (ASX:MYX) released an unaudited trading update for the first five months of FY26, revealing a complex financial landscape marked by strategic investments and shifting segment performances.

While the company reported total net revenues of $165 million, a 5.5% decrease compared to the prior corresponding period, there were notable bright spots in volume growth and margin expansion.

The dermatology segment emerged as a significant driver, with direct contribution rising 17% to US$12 million, fueled by the launch of TWYNEO and EPSOLAY, which helped bolster gross margins to 64%.

Conversely, the Women’s Health segment saw a 13.4% reduction in contribution to US$18.6 million, a dip attributed to one-time managed care credits and increased marketing expenditure aimed at long-term growth; despite the lower contribution, trade unit volumes for the segment actually climbed by 15%.

The company's underlying EBITDA for the period landed at $11.5 million, down from $22.4 million in the previous year, reflecting higher operational spend on FDA-required studies and international PBS listing efforts.

As of Nov. 30, Mayne Pharma maintains a cash position of $83 million, positioning itself to continue its aggressive marketing push in the US and Australian markets.