Thank you very much, operator. Good morning, everyone, and thank you for joining us on short notice. I am Aaron Gray, Chief Executive Officer of Mayne Pharma, and I am joined today by Griffin Buchanan, our Chief Financial Officer. This morning, we announced that Mayne Pharma has entered into a binding agreement to sell Mayne Pharma International, or MPI, our Australian manufacturing and commercial business, to Evaris Pharma for total cash consideration of AUD 55.5 million. I will take you through the transaction highlights and the strategic rationale, the MPI business, the key conditions and timetable, and what Mayne Pharma looks like after completion. Griffin and I will then take your questions related to the transaction. Slide two, please take a moment to read the disclaimer regarding forward-looking statements and the use of non-IFRS measures. Today's comments should be read in conjunction with our audited financial statements and ASX disclosures.
Turning to slide three and the transaction highlights. The sale of MPI completes Mayne Pharma's transition to a specialty pharmaceutical company that is 100% focused on the U.S. Evaris will pay AUD 55.5 million in cash at completion. That amount represents 0.79x MPI's fiscal year 2026 revenue of AUD 70.7 million, and 12.1x its fiscal year 2026 direct contribution of AUD 4.6 million. We regard that as a fair value for a business that contributed about 4% of the group's direct contribution in fiscal year 2026, while carrying the fixed cost and ongoing capital requirements of the Australian-owned manufacturing facility. Completion is expected in the third quarter of fiscal year 2027. Importantly, the transaction is not subject to FIRB approval and is not subject to a financing condition.
Transaction proceeds added to our cash and marketable securities of AUD 67.3 million at 30 September yields a pro forma cash figure of AUD 122.8 million. Slide four sets out the strategic rationale, which rests on three points. First, focus. Following completion, management attention and capital will be directed to our U.S. women's health and dermatology and DistributeRx businesses, which are the company's highest return opportunities. A single market focus will accelerate execution and increase value of our U.S. segments. Second, this transaction crystallizes the value of our recent investments in MPI, including the Salisbury upgrade and the PBS listing of Nexletol. Evaris brings scale, complementary capabilities, and regional reach, and we believe it is the right long-term owner for MPI, its people, and its customers. Third, the transaction strengthens our balance sheet and our financial flexibility.
This transaction was the outcome of a board-led process, which was commenced following termination of the scheme implementation deed in December 2025, as part of the board's regular review of the portfolio, with the sole objective to be maximizing value for shareholders. Slide five provides an overview of Mayne Pharma International, which comprises three activities. The first is Salisbury manufacturing. The Salisbury facility in South Australia carries a 40-year heritage in oral drug delivery innovation. Its AUD 18 million upgrade, including AUD 4.8 million of Commonwealth Government Modern Manufacturing Initiative funding, was inaugurated in fiscal year 2026, and the site delivered in full and on time 97.4% of the time at 30 June 2026. MPI employs approximately 240 people who will remain with the business at closing. The second is the Australian commercial business.
MPI holds the Australian rights to Nexletol, which has been PBS listed since 1 October 2025, and whose Australian demand cycles grew 127% in fiscal year 2026, and the Australian rights to Blissel, licensed in September 2026, with launch targeted for fiscal year 2028. These rights, together with MPI's established women's health commercial team and product registrations, form part of the sale. The third is contract development and manufacturing and export. MPI provides contract development and manufacturing for third-party customers, operates export and international supply agreements, including KADIAN in Canada, and has manufacturing and out-licensing partnerships under development. The expanded capacity at Salisbury positions the site to grow its third-party revenue under Evaris ownership. Slide six sets out some of the key conditions precedent and the timetable.
The principal regulatory condition is notification to and a determination permitting completion by the Australian Competition and Consumer Commission under the mandatory merger notification regime. The transaction is not subject to Foreign Investment Review Board approval. MPI does not constitute Mayne Pharma's main undertaking, so the transaction does not require shareholder approval under ASX Listing Rule 11.2. There is no financing condition, and we expect completion in the third quarter of fiscal year 2027, subject to the satisfaction of customary conditions, and we will keep the market informed of progress. Slide seven shows what Mayne Pharma looks like after completion. A simplified business, 100% focused on the U.S., with two growth engines and a strong balance sheet.
In women's health, we will drive market penetration from a low single-digit share in growing markets, protect portfolio economics, leveraging long-dated patents, sharpen commercial execution with upgraded marketing and tighter targeting of high-value prescribers, and continue to improve patient access through payer contracting and access programs. In dermatology, we will scale disintermediation through DistributeRx, expand the portfolio through capital-efficient business development and targeted acquisitions of FDA-approved brands, extend DistributeRx through new manufacturing partnerships and into additional therapeutic areas, and maintain our margin focus through product mix and channel. At a corporate level, the proceeds provide greater flexibility with our existing cash, and we will maintain a debt-light balance sheet through our U.S. growth phase. Investment will be prioritized to the highest return U.S. opportunities, with clear return hurdles for any new spend, within a simplified structure with lower capital intensity and clearer segment visibility.
In closing, the sale of MPI is a defining step in Mayne Pharma's transformation. It realizes value for shareholders from our Australian business, sharpens our focus on the U.S., and leaves the company with the balance sheet strength to pursue its growth priorities. I would like to thank the MPI team in Salisbury for their contribution to Mayne Pharma over many years, and we look forward to working with Evaris to ensure a smooth transition. That concludes our formal presentation. Griffin and I would now be happy to take your questions. Our investor relations contact details should be on the screen.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two, and if you're on a speakerphone, please pick up the handset to ask your question. We'll pause a moment for any questions to register. Once again, to ask a question, please press star one. Thank you. Your first question comes from Rhys Collyer from MST. Please go ahead.
Hi, Aaron. Obviously, great deal that's just been announced. Just wondering with the pro forma cash balance, whether there's any immediate opportunities which you guys would be looking to in the U.S.? Thanks.
Yeah, thanks for the question, Rhys. Right now, it's a little bit too early to say, I would say. The board is focused on capital deployment that maximizes shareholder value. That could represent a number of different opportunities, which could range from some product acquisitions to share buyback, et cetera. But the transaction isn't expected to complete until January or February of 2027, our fiscal Q3. So, it's a little bit early to say at this point, and we have not made any of those decisions as yet.
Thank you. Your next question comes from Anton Tagliaferro from Fundamental Investments. Please go ahead.
Yeah. Hi, Aaron. Congrats on the sale. Fantastic result. Given that Cosette's intention was to shut the plant and effectively value it at zero, does this sale make your case against them for damages stronger, do you think, please? Thank you.
Hi, Anton. Thanks for joining. I cannot comment on the litigation, the likely litigation outcome, and how this might impact that litigation outcome. We obviously thought all along that there was value in the factory, in the work, in the people, and the value that has been created there, and this affirms that we were correct.
Okay, thanks.
Thank you. There are no further questions at this time. I will now hand back to Aaron Gray for any closing remarks.
Thank you very much, operator. I would like to thank everybody for joining. Thanks to the Mayne Pharma team who has worked through and made this happen. Thanks to the MPI team who has created a valuable business, and thanks to everybody who has helped and participated. I think that would conclude today.