On April 29, 2019 Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a pharmaceutical company, reported its results from operations for the quarter and year ended December 31, 2018 (Press release, Medicure, APR 29, 2019, View Source [SID1234535447]).

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Year Ended December 31, 2018 Highlights:

Recorded total net revenue from the sale of products of $29.1 million during the year ended December 31, 2018 compared to $27.1 million for the year ended December 31, 2017;
Recorded total net revenue from the sale of AGGRASTAT of $28.5 million during the year ended December 31, 2018 compared to $27.1 million for the year ended December 31, 2017;
Net income for the year ended December 31, 2018 was $3.9 million, compared to net income of $43.4 million for the year ended December 31, 2017, which includes the gain on the sale of the Apicore business which occurred in October 2017;
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)1 for the year ended December 31, 2018 was $0.2 million compared to adjusted EBITDA of $4.8 million for the year ended December 31, 2017 and
Diversified product portfolio with US FDA ANDA approval of Sodium Nitroprusside and acquisition of US marketing rights to ZYPITAMAGTM.
Financial Results

Net revenues for the year ended December 31, 2018 were $29.1 million compared to $27.1 million for the year ended December 31, 2017. Net revenues from AGGRASTAT for the year ended December 31, 2018 were $28.5 million compared to $27.1 million for the year ended December 31, 2017. Additionally, ZYPITAMAGTM, which was launched commercially by the Company in 2018, contributed $0.7 million of net revenues for the year ended December 31, 2018.

Net revenues from AGGRASTAT for the three months ended December 31, 2018 were $8.2 million compared to $5.0 million for the three months ended December 31, 2017.

The Company continues to experience an increase in patient market share held by AGGRASTAT and an increase in the number of new hospital customers using the product leading to the highest hospital demand for AGGRASTAT in the Company’s history, which is partially offset by increased price competition as a result of increased generic competitors, which resulted in lower discounted prices for AGGRASTAT throughout 2018. An increased volume of AGGRASTAT sold and a weaker Canadian dollar compared to its US counterpart resulted in the revenue increases experienced in 2018.

Medicure continues to focus on expanding the customer base for AGGRASTAT and growing the sales of ZYPITAMAGTM (pitavastatin). Diversification of revenues remains an important aspect of the Company’s focus with the Company signing a marketing agreement for ReDSTM in January 2019 and the expected launch of Sodium Nitroprusside in mid-2019.

Adjusted EBITDA for the year ended December 31, 2018 was $0.2 million compared to $4.8 million for the year ended December 31, 2017. The decrease in adjusted EBITDA for the year is the result of the higher selling, general and administration expenses caused by the incurrence of additional costs relating to the commercial organization due to the launch of ZYPITAMAGTM and higher research and development expenses related to the Company’s product development pipeline. Adjusted EBITDA for the three months ended December 31, 2018 was negative $2.0 million compared to negative $0.6 million for the three months ended December 31, 2017.

Net income for the year ended December 31, 2018 was $3.9 million or $0.25 per share. This compares to net income of $43.4 million or $2.78 per share for the year ended December 31, 2017, which includes income of $11.5 million or $0.74 per share from continuing operations and income from discontinued operations of $31.9 million or $2.04 per share. Discontinued operations includes the operations of Apicore and the gain on the sale of the Apicore business.

Net income for the three months ended December 31, 2018 was $1.5 million or $0.10 per share, compared to net income of $51.4 million or $2.81 per share for the three months ended December 31, 2017, primarily relating to the gain on the sale of the Apicore business.

At December 31, 2018, the Company had unrestricted cash and short-term investments totaling $71.9 million compared to $5.3 million as of December 31, 2017. The increase in cash is due to the proceeds received from the sale of the Apicore business in October 2017, which were received in 2018. Cash flows from operating activities for the year ended December 31, 2018 totaled $0.7 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". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the quarters and years ended December 31, 2018 and 2017 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 Fiscal Year End 2018 Results

Call date: Tuesday, April 30, 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: 8925377#

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.