Thank you very much.
Is it on? Perfect.
Very happy to be the first presentation after the session on how to find value, because I think Mayne Pharma is one of those companies that defines that exact point of in a lot of what was just said. Mayne Pharma, a lot of folks have heard of Mayne Pharma. Mayne Pharma is an ASX-listed specialty pharma company. You can read all the stuff. The bottom line is Mayne has been a company that has gone through a failed takeover over the past year. We were in the news. We were in the Supreme Court of New South Wales, and our share price, the all-cash offer for the takeover of the company was AUD 7.40 a share. As of today, we're trading at AUD 2.13 a share.
We've lost 75% of the market value. During that time, the business has held up and been extremely resilient. There has been positive results put up at our first half. The company, on a trailing basis, delivered AUD 408 million, fiscal year 2025, with about 50% of that number in the first half. The company is in a net cash position, and when we exclude some of those special effects, the company is generating free cash flow from continuing operations. Mayne Pharma is made up of three business units. It has a branded pharmaceutical, commercial, not development, a commercial women's health branded pharmaceutical business, which is sold in the United States, backed by four products.
We have a dermatology business, which includes 31 products, 31 Mayne Pharma products, also all commercial, and backed by, not just the products, but also by a unique business model there. We have our, what we call our international business, which is basically everything non-U.S. That business includes our factory in Salisbury, sales of branded, generic, and over-the-counter products in Australia, and then certain out-licensed revenues outside of Australia. This is a breakdown of how the segments appear for FY 2025. The single largest contributing segment is our Women's Health business. Women's Health is the highest growth business that we have with the highest overall profit margin, followed by Dermatology and then followed by International. As I mentioned, AUD 408.1 million sales. This is the breakdown of where those sales are derived.
We are 467 employees, split roughly 50/50 between the United States and Australia. One misconception that a lot of folks have about the Mayne Pharma of old is that we are a generics company. Mayne Pharma has been on a journey for the past three years to really transform itself from a CDMO retail generics focused company to a branded pharma company. We've moved the overall revenues derived from branded products from 68% in FY 2024 to 84% in the first half of FY 2026. That, along with some other changes, has had the effect to lift the gross margin on those sales from 56% - 65%. Talk a little bit about our women's health business. The key focus on women's health is to drive market penetration. We have four best-in-class branded assets, all of which have patent protection.
These assets have patent protection ranging from 2032 - 2039, and these products have significant headroom and significant opportunity to grow. If we look at BIJUVA, which is a menopause product, BIJUVA has approximately 1% market share currently. IMVEXXY, 3% market share, ANNOVERA, 2%, and NEXTSTELLIS, approximately 3%. These are the products as represented in the United States. Dermatology, we have 31 dermatology products, a mix of branded products, generic products, and authorized generic products. We've completed recently the acquisition of TWYNEO and EPSOLAY in the first half for $10.2 million. These products are significantly accretive and have gross margins north of 80% and patent protection through 2042. Dermatology, the focus on this business has not really been just to acquire products, it's been to create a portfolio.
Dermatologists have in the United States some unique challenges to be able to get the patients the medicine they need and for the patients to be able to afford the medicines they need. Around that, Mayne Pharma has created a unique solution I'll talk a little bit more about. Our international business, we've got a number of the awards. Very proud of our international team in Salisbury. International, we did manage to get the NEXTSTELLIS product in Australia listed on the PBS this year. We also completed a major capital upgrade at the facility in Salisbury. We put AUD 18 million of CapEx into the facility to modernize certain equipment and to enable us to increase production of certain products, which are key to some of the out-licensing growth strategy. Disintermediation is an interesting word to try and say.
I've been working on it for a few years. Basically, what it means is there's a whole bunch of people in the U.S. pharma ecosystem who stand between the patient and the doctor, and they don't add a lot of value to the process. This entire system creates a system which for patients is ultimately opaque. The patient has no idea how much they're actually going to pay for their medication when they go to the doctor. The doctor doesn't know how much the patient's gonna pay for the medication. The patient may not know where to get the medication, and in many cases, the patient can't get the medication. Roughly 33% of scripts in the U.S. go unfilled because of issues with access or affordability.
This represents a significant challenge to patients, to doctors, and to manufacturers of products because all of these products, all of these parties in the mix are not only making the process difficult and more opaque, they're also creating cost. In many cases, the fees associated with all of these different parties can exceed the actual price of the medication. This is one of the reasons why U.S. healthcare costs have grown to an unsustainable level. Mayne Pharma has developed this solution. It's obviously much more simple. It really attempts to circumvent, first of all, the big distributors that take a large chunk of money from the manufacturer, but also then rationalizing that many patients, it's actually 25% of patients with insurance, pay less on a cash price than if they use their insurance.
It rationalizes this point that cash pay is really one of the only ways forward for certain medications in the United States. To that end, we've stood up a standalone, wholly owned company called DistributeRx™. DistributeRx™ is a Mayne Pharma company. It does have employees. It is a real business, and we've launched this initiative officially this month. We conducted a webinar on it. We've got a website distributerx.com, shares a bit more information about the model. Basically, this model has been something that Mayne Pharma has been working to create for the past five years. The model includes a digital ecosystem that allows doctors to check prices for patients. It allows patients and providers to see where they can get their medication.
It does electronic referral of these different products to the pharmacies, and it also includes a cash pharmacy, which is wholly owned by Mayne Pharma. We own a brick-and-mortar pharmacy in Lexington, Kentucky that is licensed in all 50 states. For fiscal year 2026, our focus for 2026 really is on women's health to continue to take market share. You saw the low market share numbers. We have a significant opportunity to continue growth there. We are very focused. We have a sales force of 84 representatives in the United States, one of the only women's health sales forces in the U.S. focused on growing those leading- class products.
On dermatology, we've written here, "Take the next step in our disintermediation strategy." What that means really is to drive disintermediation and see how far we can go, drive DistributeRx™ and see how much of a lift that provides to our business and how many of these problems that patients and providers have can be solved. International, focused activities to unlock value. This is really about driving the next NEXTSTELLIS under the PBS listing and then continuing to drive that out licensing business for some of our key products that's been enabled by the capital investment that we've made. Capital, the company is in a net cash position, generating free cash flow, so we have some significant opportunities to deploy capital, among those a share buyback. Thank you for your attention, and thank you for the time.
Great. Thank you very much, Aaron.
My pleasure.
I've got some questions here.
Sure.
What were the key lessons learned from the takeover process? You mentioned the failed takeover process last year. How have you grown, and what have you taken from that?
The key lessons learned, don't lose sight of the value, and I'm just thinking about the presentation prior. Don't lose sight of the value, and don't hesitate to protect the value that your employees and your culture bring to your company. That's a key one.
Mm-hmm.
Get the money in the bank before you enter into the transaction. Maybe. I would say another one personally. The partner who is looking to acquire your business, it matters very much who they are.
Mm-hmm.
Due diligence on the partner acquiring your business.
Mm-hmm
Consider beyond the financials what is actually there.
Mm-hmm. Very interesting. How do Mayne Pharma's market multiples compare to its U.S. specialty pharma peers?
We trade at a fraction of our peers. I think we are roughly one-fifth to one-tenth between which multiple you apply. Any multiple that you apply, we trade at a fraction of what our peers trade at today.
Are any of your products susceptible to disruption as a result of GLP-1s?
None of our products are susceptible to disruption from GLP-1s, no. In fact, it's actually, it's interesting. There's a lift effect actually coming in some of our products because of GLP-1s.
Oh, great. What are the two to three biggest drivers that could materially grow Mayne Pharma's earnings over the next 12-24 months, would you say?
The biggest drivers that I see, the DistributeRx™ business is extremely interesting. We launched it actually this month with the sales force fully, and we hit all-time record volumes each of the three weeks that it's been running. That's a driver.
Mm-hmm.
We also have a significant opportunity in the menopause space. In the United States, there's been what's called a black box warning on all of the hormone replacement therapy products for menopause. That black box warning has been removed. That signals a change in attitude, I think. It also, it kind of fits in with a change in sentiment of both consumers and providers, and many more people are using hormone replacement therapy in the U.S., more in line with what happens in Australia, in the U.K., Europe, et cetera.
Yeah.
That's a major tailwind for us because we do have those best-in-class assets.
That's very interesting.
In fact, the menopause asset, BIJUVA, was our fastest-growing asset, and it is, of our promoted assets, it's the one that we put the least effort behind up to this point.
Mm-hmm.
Significant opportunity to grow those in the future.