On November 26, 2019 Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a cardiovascular pharmaceutical company, reported its results from operations for the quarter ended September 30, 2019 (Press release, Medicure, NOV 26, 2019, View Source [SID1234551730]).
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Quarter Ended September 30, 2019 Highlights:
Recorded net revenue from the sale of AGGRASTAT (tirofiban hydrochloride) of $5.3 million during the quarter ended September 30, 2019 compared to $7.0 million for the quarter ended September 30, 2018;
$35.7 million in cash as at September 30, 2019;
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA1) for the quarter ended September 30, 2019 was negative $319,000 compared to adjusted EBITDA of $599,000 for the quarter ended September 30, 2018; and
Net loss for the quarter ended September 30, 2019 was $599,000 compared to net loss of $545,000 for the quarter ended September 30, 2018.
Financial Results
Net revenues for the three months ended September 30, 2019 were $5.5 million compared to $7.4 million for the three months ended September 30, 2018. Net revenues from AGGRASTAT for the three months ended September 30, 2019 were $5.3 million compared to $7.0 million for the three months ended September 30, 2018. Additionally, ReDSTM, contributed $117,000 of net revenue for the three months ended September 30, 2019 and ZYPITAMAGTM contributed $78,000 compared to $326,000 during the three months ended September 30, 2018 following the launch of the product in 2018.
Net revenues for the nine months ended September 30, 2019 were $16.7 million compared to $21.2 million for the nine months ended September 30, 2018. Net revenues from AGGRASTAT for the nine months ended September 30, 2019 were $16.3 million compared to $20.3 million for the nine months ended September 30, 2018. Additionally, ReDSTM contributed $272,000 and ZYPITAMAGTM contributed $87,000 of net revenue for the nine months ended September 30, 2019. The nine months ended September 30, 2018 contained $932,000 of revenue from ZYPITAMAGTM following the launch of the product in 2018.
The Company continued to experience strong patient market share and strong hospital demand for AGGRASTAT during the three and nine months ended September 30, 2019, however this was offset by increased price competition that resulted in lower discounted prices for AGGRASTAT throughout the quarter.
Diversification of revenues remains an important aspect of the Company’s focus with Medicure concentrating on the sales and marketing of AGGRASTAT, growing the sales of ZYPITAMAGTM (pitavastatin) and marketing the ReDSTM system.
Adjusted EBITDA for the three months ended September 30, 2019 was negative $319,000 compared to $599,000 for the three months ended September 30, 2018. The decrease in adjusted EBITDA for the three months ended September 30, 2019 is the result of the lower revenues experienced during the quarter ended September 30, 2019.
Adjusted EBITDA for the nine months ended September 30, 2019 was negative $1.9 million compared to $2.5 million for the nine months ended September 30, 2018. The decrease in adjusted EBITDA for the nine months ended September 30, 2019 is the result of lower revenues experienced during the nine months ended September 30, 2019.
Net loss for the three months ended September 30, 2019 was $599,000 or $0.04 per share. This compares to net loss of $545,000 or $0.03 per share for the three months ended September 30, 2018. Net loss for the three months ended September 30, 2019 is the result of lower revenues experienced during the quarter and a write-down of expiring ZYPITAMAGTM inventory of $578,000 partially offset by a foreign exchange gain relating to an increase in the value of the U.S. dollar experienced during the quarter ended September 30, 2019.
Net loss for the nine months ended September 30, 2019 was $4.3 million or $0.28 per share. This compares to net income of $2.4 million or $0.15 per share for the nine months ended September 30, 2018. Net loss for the nine months ended September 30, 2019 is the result of lower revenues, experienced during the period, a write-down of expiring ZYPITAMAGTM inventory of $578,000 and a foreign exchange loss relating to a decrease in the value of the U.S. dollar experienced during the nine months ended September 30, 2019.
At September 30, 2019, the Company had unrestricted cash totaling $35.7 million compared to $71.9 million of cash and short-term investments as of December 31, 2018. The decrease in cash is primarily due to the investment of U.S. $10 million made in Sensible Medical Innovations Ltd., the acquisition of full ZYPITAMAGTM rights acquired during the third quarter for US$5 million and the purchase of $4.1 million of the Company’s common shares under its normal course issuer bid, a significant reduction in the Company’s accounts payable and accrued liabilities and a decrease in the value of the U.S. dollar as at September 30, 2019 compared to December 31, 2018. Cash flows used in operating activities for the nine months ended September 30, 2019 totaled $10.9 million.
All amounts referenced herein are in Canadian dollars unless otherwise noted.
Notes
(1) The Company defines EBITDA as "earnings before interest, taxes, depreciation, amortization and other income or expense" and Adjusted EBITDA as "EBITDA adjusted for non-cash and non-recurring items, including the write-down of inventory". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the three and nine months ended September 30, 2019 and 2018 results prepared using International Financial Reporting Standards ("IFRS"), do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.
Conference Call Info:
Topic: Medicure’s Q3 2019 Results
Call date: Wednesday, November 27, 2019
Time: 7:30 AM Central Time (8:30 AM Eastern Time)
Canada toll-free: 1 (888) 465-5079 Canada toll: 1 (416) 216-4169
United States toll-free: 1 (888) 545-0687
Passcode: 7343307#
Webcast: This conference call will be webcast live over the internet and can be accessed from the Medicure investor relations page at the following link: View Source
You may request international country-specific access information by e-mailing the Company in advance. Management will accept and answer questions related to the financial results and operations during the question-and-answer period at the end of the conference call. A recording of the call will be available following the event at the Company’s website.