Medicure Reports Financial Results for Quarter Ended September 30, 2019

Tuesday, November 26, 2019

WINNIPEG, Nov. 26, 2019 /CNW/ - Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a cardiovascular pharmaceutical company, today reported its results from operations for the quarter ended September 30, 2019. 

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, ReDS™, contributed $117,000 of net revenue for the three months ended September 30, 2019 and ZYPITAMAG™ 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, ReDS™ contributed $272,000 and ZYPITAMAG™ 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 ZYPITAMAG™ 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 ZYPITAMAG™ (pitavastatin) and marketing the ReDS™ 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 ZYPITAMAG™ 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 ZYPITAMAG™ 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 ZYPITAMAG™ 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: http://www.medicure.com/investors   

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.

About Medicure

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, ZYPITAMAG™ (pitavastatin) tablets and the ReDS™ device in the United States, where they are sold through the Company's U.S. subsidiary, Medicure Pharma Inc. For more information on Medicure please visit www.medicure.com.

To be added to Medicure's e-mail list, please visit: http://medicure.mediaroom.com/alerts

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, 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 Form 20F for the year ended December 31, 2018.

AGGRASTAT® (tirofiban hydrochloride) is a registered trademark of Medicure International Inc.

Condensed Consolidated Interim Statements of Financial Position
(expressed in thousands of Canadian dollars, except per share amounts)
(unaudited)





September 30, 2019

December 31, 2018

Assets



Current assets:



Cash and cash equivalents

$

35,701

$

24,139

Short-term investments

-

47,747

Accounts receivable

10,596

10,765

Inventories

8,271

4,239

Prepaid expenses

1,947

2,697

Total current assets

56,515

89,587

Non‑current assets:



Property and equipment

796

316

Intangible assets

16,903

1,705

Holdback receivable

11,561

11,909

Investment in Sensible Medical

5,886

-

Other assets

-

117

Deferred tax assets

123

127

Total non‑current assets

35,269

14,174

Total assets

$

91,784

$

103,761

Liabilities and Equity



Current liabilities:



Accounts payable and accrued liabilities

$

10,907

$

14,377

Current income taxes payable

402

1,058

Current portion of lease obligation

289

-

Current portion of acquisition payable

662

-

Current portion of royalty obligation

1,191

1,496

Total current liabilities

13,451

16,931

Non‑current liabilities



Royalty obligation

1,669

2,035

Lease obligation

162

-

Acquisition payable

1,647

-

Other long‑term liabilities

1,165

1,201

Total non‑current liabilities

4,643

3,236

Total liabilities

18,094

20,167

Equity:



Share capital

116,969

122,887

Warrants

1,949

1,949

Contributed surplus

7,891

7,628

Accumulated other comprehensive income

(481)

1,268

Deficit

(52,638)

(50,138)

Total Equity

73,690

83,594

Total liabilities and equity

$

91,784

$

103,761

 

Condensed Consolidated Interim Statements of Net (Loss) Income and Comprehensive (Loss) Income
(expressed in thousands of Canadian dollars, except per share amounts)
(unaudited)







Three months
ended

September 30,
2019

Three months
ended

September 30,
2018

Nine months
ended

September 30,
2019

Nine months

ended

September 30,
2018






Revenue, net

$

5,519

$

7,350

$

16,700

$

21,215

Cost of goods sold

1,496

974

3,887

2,965

Gross profit

4,023

6,376

12,813

18,250






Expenses





Selling

3,349

3,986

10,796

10,882

General and administrative

1,044

704

2,748

2,786

Research and development

976

1,400

3,078

3,380


5,369

6,090

16,622

17,048

(Loss) income before the undernoted

(1,346)

286

(3,809)

1,202






Other income:





Revaluation of holdback receivable

-

67

-

234











Finance costs (income):





Finance (income) expense, net

(116)

(88)

(488)

(107)

Foreign exchange loss (gain), net

(601)

916

1,093

(1,119)


(717)

828

605

(1,226)

Net (loss) income before income taxes

(629)

(475)

(4,414)

2,661

Income tax (recovery) expense





Current

(30)

65

(102)

208

Deferred

-

4

-

43


(30)

69

(102)

251

Net (loss) income

$

(599)

$

(545)

$

(4,312)

$

2,410

Other comprehensive (loss) income:





Item that may be reclassified to profit or loss





Exchange differences on translation
of foreign subsidiaries

195

(650)

(1,293)

1,433






Item that will not be reclassified to profit or loss:





Revaluation of investment in
Sensible Medical at FVOCI

(212)

-

(456)

-

Other comprehensive (loss) income, net of tax

(17)

(650)

(1,749)

1,433

Comprehensive (loss) income

$

(616)

$

(1,195)

$

(6,061)

$

3,843






(Loss) earnings per share





Basic

$

(0.04)

$

(0.03)

$

(0.28)

$

0.15

Diluted

$

(0.04)

$

(0.03)

$

(0.28)

$

0.14

 

Condensed Consolidated Interim Statements of Cash Flows
(expressed in thousands of Canadian dollars, except per share amounts)
(unaudited)




For the nine months ended September 30

2019

2018

Cash (used in) provided by:



Operating activities:



Net (loss) income for the period

$

(4,312)

$

2,409

Adjustments for:



Current income tax (recovery) expense

(102)

208

Deferred income tax expense

-

44

Revaluation of holdback receivable

-

(234)

Write-down of inventories

578

-

Amortization of property and equipment

382

71

Amortization of intangible assets

667

130

Share‑based compensation

280

820

Finance (income) expense, net

(488)

(107)

Unrealized foreign exchange loss (gain)

7

(1,119)

Change in the following:



Accounts receivable

(655)

657

Inventories

(4,610)

(1,260)

Prepaid expenses

750

(1,948)

Accounts payable and accrued liabilities

(3,350)

6,341

Interest received, net

1,609

157

Income taxes paid

(477)

(2,041)

Royalties paid

(1,133)

(1,166)

Cash flows used in operating activities

(10,854)

2,962

Investing activities:



Investment in Sensible Medical

(6,337)

-

Proceeds from Apicore Sale Transaction

-

65,235

Redemptions (purchases) of short-term investments

47,747

(51,780)

Acquisition of property and equipment

(186)

(127)

Acquisition of intangible assets

(13,660)

-

Cash flows from investing activities

27,564

13,328

Financing activities:



Repurchase of common shares under normal course issuer bid

(4,145)

(1,905)

Exercise of stock options

20

322

Cash flows used in financing activities

(4,125)

(1,583)

Foreign exchange (loss) gain on cash held in foreign currency

(1,023)

262

Increase in cash and cash equivalents

11,562

14,969

Cash and cash equivalents, beginning of period

24,139

5,260

Cash and cash equivalents, end of period

$

35,701

$

20,229

 

SOURCE Medicure Inc.

For further information: James Kinley, Chief Financial Officer, Tel. 888-435-2220, Fax 204-488-9823, E-mail: info@medicure.com, www.medicure.com

 


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