from Medicure, Inc. (NASDAQ:MCUJF)
Medicure Reports Financial Results for Quarter and Year Ended December 31, 2022
WINNIPEG, MB / ACCESSWIRE / April 6, 2023 / Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH)(OTC PINK:MCUJF), a company focused on the development and commercialization of pharmaceuticals and healthcare products for patients and prescribers in the United States market, today reported its results from operations for the quarter and year ended December 31, 2022.
Quarter and Year Ended December 31, 2022 Highlights:
- Recorded total net revenue of $23.1 million during the year ended December 31, 2022 compared to $21.7 million for the year ended December 31, 2021 and;
- Recorded total net revenue of $6.3 million during the quarter ended December 31, 2022 compared to $6.8 million for the quarter ended December 31, 2021 and;
- Recorded total net revenue from the sale of AGGRASTAT® of $11.7 million during the year ended December 31, 2022 compared to $11.5 million for the year ended December 31, 2021 and;
- Recorded total net revenue from the sale of ZYPITAMAG® of $3.6 million during the year ended December 31, 2022 compared to $3.2 million for the year ended December 31, 2021 and;
- Recorded total net revenue from the Marley Drug business of $7.8 million during the year ended December 31, 2022 compared to $6.9 million for the year ended December 31, 2021 and;
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA1) for the year ended December 31, 2022 was $3.3 million compared to adjusted EBITDA of $2.1 million for the year ended December 31, 2021 and;
- Net income for the year ended December 31, 2022 was $1.4 million or $0.13 per share compared to a net loss of $727,000 or $0.07 per share for the year ended December 31, 2021;
Financial Results
The increase in AGGRASTAT® revenues when compared to the same period in the previous year, as described above, is the result of increases in the volume of AGGRASTAT® sold in 2022 when compared to 2021, in conjunction to improvements in inventory and contract management.
ZYPITAMAG® contributed $3.6 million of revenue for the year ended December 31, 2022 compared to $3.2 million for the year ended December 31, 2021. The increase in revenue is primarily as a result of uptake through covered plans and improved patient access and fill rate through Medicure's subsidiary Marley Drug, which also results in reduced fees to wholesalers and pharmacy benefit managers.
The Marley Drug business, acquired on December 17, 2020, contributed $7.8 million of revenue for the year ended December 31, 2022 compared to $6.9 million for the year ended December 31, 2021. Marley Drug is a US pharmacy licensed to ship medications to all 50 states, Washington D.C. and Puerto Rico. It serves thousands of customers and provides another channel for direct-to-consumer marketing, distribution and improved profit margin for ZYPITAMAG. The increase in revenue is a result of marketing efforts to grow the customer base and sales through the newly launched E-commerce website.
Sodium nitroprusside did not contribute any revenue during the year ended December 31, 2022 compared to $59,000 of revenue during the year ended December 31, 2021, and as a result the company has put a marketing hold on this product due to poor commercial viability.
Adjusted EBITDA for the year ended December 31, 2022 was $3.3 million compared to $2.1 million for the year ended December 31, 2021. Increased adjusted EBITDA for the year ended December 31, 2022 resulted from increased revenues from the sale of AGGRASTAT, ZYPITAMAG and increased sales through Marley Drug. In addition, the prospective change to the amortization of the ZYPITAMAG intangible asset during the fourth quarter of 2021, resulted in lower cost of goods sold during the current year. Offsetting the increase in the current year, was an increase in research and development expenses.
Net income for the year ended December 31, 2022 was $1.4 million or $0.13 per share compared to a net loss of $727,000 or $0.07 per share for the year ended December 31, 2021. The main factors contributing to the increase in net income recorded for the year ended December 31, 2022 were the increased revenues from AGGRASTAT, ZYPITAMAG and Marley Drug, a decrease in cost of goods sold as a result of improved inventory management, partially offset by increased research and development expenses primarily due to timing of research and development projects the Company is undertaking.
At December 31, 2022, the Company had unrestricted cash totaling $4.9 million, up from $3.7 million of unrestricted cash held as of December 31, 2021. Cash flows from operating activities for the year ended December 31, 2022 totaled $1.8 million compared to $4.0 million for the year ended December 31, 2021.
All amounts referenced herein are in Canadian dollars unless otherwise noted.
The Company plans to hold an investor conference call in May 2022 to present the results for the three months ended March 31, 2023 with date and dial in information to be provided. The full financial statements are available at www.sedar.com and on the Company's website at www.medicure.com.
Notes
- The Company defines EBITDA as "earnings before interest, taxes, depreciation, amortization and other income or expense" and Adjusted EBITDA as "EBITDA adjusted for nonâcash and non-recurring items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the three months and year ended December 31, 2022 and 2021 results prepared using IFRS, do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.
About Medicure Inc.
Medicure is a pharmaceutical company focused on the development and commercialization of therapies for the U.S. cardiovascular market. The present focus of the Company is the marketing and distribution of AGGRASTAT® (tirofiban hydrochloride) injection and ZYPITAMAG® (pitavastatin) tablets in the United States, where they are sold through the Company's U.S. subsidiary, Medicure Pharma Inc. Medicure also operates Marley Drug, Inc. ("Marley Drug"), a pharmacy located in North Carolina that offers an Extended Supply drug program serving all 50 states, Washington D.C. and Puerto Rico. Marley Drug® is committed to improving the health status of its patients and the communities they serve while reducing overall health care costs for employers and other health care consumers. For more information visit www.marleydrug.com. To learn more about The Extended Supply Generic Drug Program call 800.286.6781 or email info@marleydrug.com.For more information on Medicure please visit www.medicure.com. For additional information about AGGRASTAT®, please visit www.aggrastathdb.com or refer to the full Prescribing Information. For additional information about ZYPITAMAG®, please visit www.zypitamag.com or refer to the full Prescribing Information.
To receive investor and business updates from Medicure, please fill out this form click here to be added to Medicure's e-mail list.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information: Statements contained in this press release that are not statements of historical fact, including, without limitation, statements containing the words "believes", "may", "plans", "will", "estimates", "continues", "anticipates", "intends", "expects" and similar expressions, may constitute "forward-looking information" within the meaning of applicable Canadian and U.S. federal securities laws (such forward-looking information and forward-looking statements are hereinafter collectively referred to as "forward-looking statements"). Forward-looking statements, include estimates, analysis and opinions of management of the Company made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors which the Company believes to be relevant and reasonable in the circumstances. Inherent in forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to predict or control that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements, and as such, readers are cautioned not to place undue reliance on forward-looking statements. Such risk factors include, among others, the Company's future product revenues, expected results, including future revenue from P5P, the likelihood of receiving a priority review voucher from the United State Food and Drug Administration, expected future growth in revenues, stage of development, additional capital requirements, risks associated with the completion and timing of clinical trials and obtaining regulatory approval to market the Company's products, the ability to protect its intellectual property, dependence upon collaborative partners, changes in government regulation or regulatory approval processes, and rapid technological change in the industry. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about: general business and economic conditions; the impact of changes in Canadian-US dollar and other foreign exchange rates on the Company's revenues, costs and results; the timing of the receipt of regulatory and governmental approvals for the Company's research and development projects; the availability of financing for the Company's commercial operations and/or research and development projects, or the availability of financing on reasonable terms; results of current and future clinical trials; the uncertainties associated with the acceptance and demand for new products and market competition. The foregoing list of important factors and assumptions is not exhaustive. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, other than as may be required by applicable legislation. Additional discussion regarding the risks and uncertainties relating to the Company and its business can be found in the Company's other filings with the applicable Canadian securities regulatory authorities or the US Securities and Exchange Commission, and in the "Risk Factors" section of its current Form 20F.
AGGRASTAT® (tirofiban hydrochloride) injection, ZYPITAMAG® (pitavastatin) tablets, and Marley Drug® are registered trademarks.
For more information, please contact:
Dr. Albert D. Friesen
Chief Executive Officer
Tel. 888-435-2220
Fax 204-488-9823
E-mail: info@medicure.com
www.medicure.com
Consolidated Statements of Financial Position
(expressed in thousands of Canadian dollars, except per share amounts)
| As at December 31 | 2022 | 2021 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,857 | $ | 3,694 | ||||
Restricted cash | - | 3 | ||||||
Accounts receivable | 5,635 | 4,659 | ||||||
Inventories | 3,221 | 3,329 | ||||||
Prepaid expenses | 1,134 | 869 | ||||||
Total current assets | 14,847 | 12,554 | ||||||
Non-current assets: | ||||||||
Property and equipment | 1,187 | 1,611 | ||||||
Intangible assets | 10,624 | 11,212 | ||||||
Goodwill | 3,177 | 2,974 | ||||||
Other assets | 63 | 57 | ||||||
Total non-current assets | 15,051 | 15,854 | ||||||
Total assets | $ | 29,898 | $ | 28,408 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 7,128 | $ | 6,668 | ||||
Current portion of royalty obligation | 179 | 423 | ||||||
Current portion of acquisition payable | 677 | 634 | ||||||
Current portion of contingent consideration | - | 293 | ||||||
Current income taxes payable | 60 | 114 | ||||||
Current portion of lease obligations | 346 | 380 | ||||||
Total current liabilities | 8,390 | 8,512 | ||||||
Non-current liabilities | ||||||||
Royalty obligation | - | 65 | ||||||
Acquisition payable | - | 591 | ||||||
Contingent consideration | - | 40 | ||||||
Lease obligations | 503 | 789 | ||||||
Total non-current liabilities | 503 | 1,485 | ||||||
Total liabilities | 8,893 | 9,997 | ||||||
Equity: | ||||||||
Share capital | 80,917 | 80,917 | ||||||
Contributed surplus | 10,476 | 10,429 | ||||||
Accumulated other comprehensive loss | (5,458 | ) | (6,640 | ) | ||||
Deficit | (64,930 | ) | (66,295 | ) | ||||
Total equity | 21,005 | 18,411 | ||||||
Total liabilities and equity | $ | 29,898 | $ | 28,408 | ||||
Consolidated Statements of Net (Loss) Income and Comprehensive (Loss) Income
(expressed in thousands of Canadian dollars, except per share amounts)
| For the year ended December 31 | 2022 | 2021 | 2020 | |||||||||
Revenue, net | ||||||||||||
Product sales, net | $ | 23,065 | $ | 21,744 | $ | 11,610 | ||||||
Cost of goods sold | 6,990 | 9,032 | 6,480 | |||||||||
Gross profit | 16,075 | 12,712 | 5,130 | |||||||||
Expenses | ||||||||||||
Selling | 7,935 | 10,312 | 5,359 | |||||||||
General and administrative | 4,193 | 2,697 | 4,579 | |||||||||
Research and development | 2,754 | 1,796 | 3,299 | |||||||||
| 14,882 | 14,805 | 13,237 | ||||||||||
Other Income: | ||||||||||||
Other Income | (346 | ) | (1,828 | ) | - | |||||||
| (346 | ) | (1,828 | ) | - | ||||||||
Finance (income) costs: | ||||||||||||
Finance (income) expense, net | 206 | 525 | (765 | ) | ||||||||
Foreign exchange (gain) loss, net | (52 | ) | (31 | ) | (497 | ) | ||||||
| 154 | 494 | (1,262 | ) | |||||||||
Net income (loss) before income taxes | $ | 1,385 | $ | (759 | ) | $ | (6,845 | ) | ||||
Income tax recovery (expense) | ||||||||||||
Current | (20 | ) | 32 | - | ||||||||
Deferred | - | - | - | |||||||||
| (20 | ) | 32 | - | |||||||||
Net profit (loss) | $ | 1,365 | $ | (727 | ) | $ | (6,845 | ) | ||||
Item that may be reclassified to profit or loss | ||||||||||||
Exchange differences on translation of foreign subsidiaries: | 1,182 | (143 | ) | (746 | ) | |||||||