Stable Group Revenue and Improved Gross Margin
Group revenue of $212.1 million was broadly flat year‑on‑year while gross margin improved to 65.3% from 61.4% (≈+3.9 percentage points), indicating better mix and margin control.
Improved Total Direct Contribution
Total direct segment contribution increased to $68.1 million, up $3.1 million or ~5% versus the prior corresponding period, reflecting higher-quality earnings despite flat revenue.
Positive Operating Cash Flow and Cash Balance
Adjusted operating cash flow from continuing operations was $16.9 million (cash generative underlying business) and the company closed the half with $67.3 million in cash and marketable securities.
Dermatology Margin-Led Turnaround
Dermatology revenue was $78.6 million (down 3%) but gross margin expanded to 65% (up 12 percentage points) and direct contribution grew 35% to $29.8 million, driven by branded mix (branded revenue $51.2 million, 65% of mix vs 55% PCP).
Women's Health Product Momentum (NEXTSTELLIS, BIJUVA, IMVEXXY)
Women's Health revenue was $96.5 million (+2%). NEXTSTELLIS demand cycles were up 16% with net sales +4% to USD 23.4m; IMVEXXY TRx +3% and net sales +2% to USD 15.6m; BIJUVA TRx +26% and net sales +23% to USD 8.2m—broad-based momentum across the menopause franchise.
International: PBS Listing and Manufacturing Upgrade
NEXTSTELLIS received PBS approval in Australia and promotion commenced; Salisbury facility modernization completed ($18m investment, incl. $4.8m grant). Early indicator: 118% growth in 3-pack NEXTSTELLIS volumes in Dec 2025.
Strategic Repositioning and Leadership Continuity
Company transformation from generics/CDMO to a U.S. branded Women's Health and Dermatology growth company noted as complete; planned CEO succession executed for continuity and the business described as stable with experienced leadership.
Capital Allocation Optionality
Management is evaluating share repurchases, targeted asset acquisitions and promotional investment—indicating flexibility to deploy capital to enhance shareholder value.