Medicure Reports Financial Results for Quarter Ended June 30, 2019

Published

WINNIPEG, Aug. 8, 2019 /PRNewswire/ - Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a pharmaceutical company, today reported its results from operations for the quarter ended June 30, 2019. 

Quarter Ended June 30, 2019 Highlights:

  • Recorded net revenue from the sale of AGGRASTAT® (tirofiban hydrochloride) of $6.2 million during the quarter ended June 30, 2019 compared to $7.2 million for the quarter ended June 30, 2018 and $4.8 million for the quarter ended March 31, 2019;
  • $45.7 million in cash as at June 30, 2019;
  • Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA1) for the quarter ended June 30, 2019 was $103,000 compared to adjusted EBITDA of $882,000 for the quarter ended June 30, 2018; and
  • Net loss for the quarter ended June 30, 2019 was $957,000 (of which, $813,000 was due to a loss from foreign exchange) compared to net income of $1.6 million for the quarter ended June 30, 2018.

Financial Results

Net revenues for the three months ended June 30, 2019 were $6.3 million compared to $7.8 million for the three months ended June 30, 2018.  Net revenues from AGGRASTAT® for the three months ended June 30, 2019 were $6.2 million compared to $7.2 million for the three months ended June 30, 2018.  Additionally, ReDSTM point of care system ("ReDSTM"), contributed $51,000 of net revenue for the three months ended June 30, 2019 and the three months ended June 30, 2018 contained $606,000 of revenue from ZYPITAMAGTM following the launch of the product in the period. 

Net revenues for the six months ended June 30, 2019 were $11.2 million compared to $13.9 million for the six months ended June 30, 2018.  Net revenues from AGGRASTAT® for the six months ended June 30, 2019 were $11.0 million compared to $13.3 million for the six months ended June 30, 2018.  Additionally, ReDSTM, contributed $154,000 of net revenue for the six months ended June 30, 2019 and the six months ended June 30, 2018 contained $606,000 of revenue from ZYPITAMAGTM following the launch of the product in the period. 

The Company continued to experience strong patient market share and strong hospital demand for AGGRASTAT® during the three and six months ended June 30, 2019, however increases in volume compared to the three and six months ended June 30, 2018 were 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 June 30, 2019 was $103,000 compared to $882,000 for the three months ended June 30, 2018. The decrease in adjusted EBITDA for the three months ended June 30, 2019 is the result of the lower revenues experienced during the quarter ended June 30, 2019.

Adjusted EBITDA for the six months ended June 30, 2019 was negative $1.6 million compared to $1.8 million for the six months ended June 30, 2018. The decrease in adjusted EBITDA for the six months ended June 30, 2019 is the result of lower revenues and higher selling costs, as a result of the increase in the Company's product portfolio, experienced during the quarter ended June 30, 2019.

Net loss for the three months ended June 30, 2019 was $957,000 or $0.06 per share. This compares to net income of $1.6 million or $0.10 per share for the three months ended June 30, 2018. Net loss for the three months ended June 30, 2019 is the result of lower revenues experienced during the quarter and a foreign exchange loss relating to a decrease in the value of the U.S. dollar experienced during the quarter ended June 30, 2019.

Net loss for the six months ended June 30, 2019 was $3.7 million or $0.24 per share. This compares to net income of $3.0 million or $0.19 per share for the six months ended June 30, 2018. Net loss for the six months ended June 30, 2019 is the result of lower revenues, higher selling costs and cost of goods sold experienced during the period and a foreign exchange loss relating to a decrease in the value of the U.S. dollar experienced during the six months ended June 30, 2019.

At June 30, 2019, the Company had unrestricted cash totaling $45.7 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 purchase of $3.6 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 June 30, 2019 compared to December 31, 2018.  Cash flows used in operating activities for the three months ended June 30, 2019 totaled $7.1 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 three and six months ended June 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 Q2 2019 Results

Call date:  Friday, August 9, 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:  7554403#

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, ZYPITAMAGTM (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)
June 30, 2019 December 31, 2018
Assets
Current assets:
Cash and cash equivalents $ 45,705 $ 24,139
Short-term investments - 47,747
Accounts receivable 10,982 10,765
Inventories 4,911 4,239
Prepaid expenses 3,373 2,697
Total current assets 64,971 89,587
Non‑current assets:
Property and equipment 908 316
Intangible assets 8,117 1,705
Holdback receivable 11,425 11,909
Investment in Sensible Medical 6,099 -
Other assets - 117
Deferred tax assets 122 127
Total non‑current assets 26,671 14,174
Total assets $ 91,642 $ 103,761
  Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities $ 11,831 $ 14,377
Current income taxes payable 397 1,058
Current portion of lease obligation 292 -
Current portion of royalty obligation 1,263 1,496
Total current liabilities 13,783 16,931
Non‑current liabilities
Royalty obligation 1,725 2,035
Lease obligation 233 -
Other long‑term liabilities 1,152 1,201
Total non‑current liabilities 3,110 3,236
Total liabilities 16,893 20,167
Equity:
Share capital 117,897 122,887
Warrants 1,949 1,949
Contributed surplus 7,783 7,628
Accumulated other comprehensive income (464) 1,268
Deficit (52,416) (50,138)
Total Equity 74,749 83,594
Total liabilities and equity $ 91,642 $ 103,761

 

Condensed Consolidated Interim Statements of Financial Position(expressed in thousands of Canadian dollars, except per share amounts)(unaudited) Condensed Consolidated Interim Statements of Net (Loss) Income and Comprehensive (Loss) Income(expressed in thousands of Canadian dollars, except per share amounts)(unaudited)
June 30, 2019 December 31, 2018 Three months ended June 30, 2019 Three months ended June 30, 2018 Six months ended June 30, 2019 Six months ended June 30, 2018
Assets
Current assets: Revenue, net $ 6,301 $ 7,801 $ 11,181 $ 13,865
Cash and cash equivalents $ 45,705 $ 24,139 Cost of goods sold 1,353 1,202 2,391 1,991
Short-term investments - 47,747 Gross profit 4,948 6,599 8,790 11,874
Accounts receivable 10,982 10,765
Inventories 4,911 4,239 Expenses
Prepaid expenses 3,373 2,697 Selling 3,319 3,899 7,447 6,896
Total current assets 64,971 89,587 General and administrative 769 1,148 1,704 2,082
Non‑current assets: Research and development 1,181 1,071 2,102 1,980
Property and equipment 908 316 5,269 6,118 11,253 10,958
Intangible assets 8,117 1,705 (Loss) income before the undernoted (321) 481 (2,463) 916
Holdback receivable 11,425 11,909
Investment in Sensible Medical 6,099 - Other income:
Other assets - 117 Revaluation of holdback receivable - 84 - 167
Deferred tax assets 122 127 - 84 - 167
Total non‑current assets 26,671 14,174
Total assets $ 91,642 $ 103,761 Finance costs (income):
  Liabilities and Equity Finance (income) expense, net (182) (94) (372) (18)
Current liabilities: Foreign exchange loss (gain), net 813 (1,022) 1,694 (2,035)
Accounts payable and accrued liabilities $ 11,831 $ 14,377 631 (1,116) 1,322 (2,053)
Current income taxes payable 397 1,058 Net (loss) income before income taxes $ (952) $ 1,681 $ (3,785) $ 3,136
Current portion of lease obligation 292 - Income tax (recovery) expense
Current portion of royalty obligation 1,263 1,496 Current 5 65 (72) 143
Total current liabilities 13,783 16,931 Deferred - 21 - 39
Non‑current liabilities 5 86 (72) 182
Royalty obligation 1,725 2,035 Net (loss) income $ (957) $ 1,595 $ (3,713) $ 2,954
Lease obligation 233 - Other comprehensive (loss) income:
Other long‑term liabilities 1,152 1,201 Item that may be reclassified to profit or loss
Total non‑current liabilities 3,110 3,236 Exchange differences on translation of foreign subsidiaries (654) 928 (1,488) 2,083
Total liabilities 16,893 20,167
Equity: Item that will not be reclassified to profit or loss:
Share capital 117,897 122,887 Revaluation of investment in Sensible Medical at FVOCI (361) - (244) -
Warrants 1,949 1,949 Other comprehensive (loss) income, net of tax (1,015) 928 (1,732) 2,083
Contributed surplus 7,783 7,628 Comprehensive (loss) income $ (1,972) $ 2,523 $ (5,445) $ 5,037
Accumulated other comprehensive income (464) 1,268
Deficit (52,416) (50,138) (Loss) earnings per share
Total Equity 74,749 83,594 Basic $ (0.06) $ 0.10 $ (0.24) $ 0.19
Total liabilities and equity $ 91,642 $ 103,761 Diluted $ (0.06) $ 0.09 $ (0.24) $ 0.17

 

Condensed Consolidated Interim Statements of Financial Position(expressed in thousands of Canadian dollars, except per share amounts)(unaudited) Condensed Consolidated Interim Statements of Net (Loss) Income and Comprehensive (Loss) Income(expressed in thousands of Canadian dollars, except per share amounts)(unaudited) Condensed Consolidated Interim Statements of Cash Flows(expressed in thousands of Canadian dollars, except per share amounts)(unaudited)
June 30, 2019 December 31, 2018 Three months ended June 30, 2019 Three months ended June 30, 2018 Six months ended June 30, 2019 Six months ended June 30, 2018 For the six months ended June 30 2019 2018
Assets Cash (used in) provided by:
Current assets: Revenue, net $ 6,301 $ 7,801 $ 11,181 $ 13,865 Operating activities:
Cash and cash equivalents $ 45,705 $ 24,139 Cost of goods sold 1,353 1,202 2,391 1,991 Net (loss) income for the period $ (3,713) $ 2,954
Short-term investments - 47,747 Gross profit 4,948 6,599 8,790 11,874 Adjustments for:
Accounts receivable 10,982 10,765 Current income tax (recovery) expense (72) 143
Inventories 4,911 4,239 Expenses Deferred income tax expense - 39
Prepaid expenses 3,373 2,697 Selling 3,319 3,899 7,447 6,896 Revaluation of holdback receivable - (167)
Total current assets 64,971 89,587 General and administrative 769 1,148 1,704 2,082 Amortization of property and equipment 251 48
Non‑current assets: Research and development 1,181 1,071 2,102 1,980 Amortization of intangible assets 426 65
Property and equipment 908 316 5,269 6,118 11,253 10,958 Share‑based compensation 172 675
Intangible assets 8,117 1,705 (Loss) income before the undernoted (321) 481 (2,463) 916 Finance (income) expense, net (372) (18)
Holdback receivable 11,425 11,909 Unrealized foreign exchange loss (gain) 947 (404)
Investment in Sensible Medical 6,099 - Other income: Change in the following:
Other assets - 117 Revaluation of holdback receivable - 84 - 167 Accounts receivable (1,059) (6,297)
Deferred tax assets 122 127 - 84 - 167 Inventories (672) (2)
Total non‑current assets 26,671 14,174 Prepaid expenses (676) (2,117)
Total assets $ 91,642 $ 103,761 Finance costs (income): Accounts payable and accrued liabilities (2,434) 4,821
  Liabilities and Equity Finance (income) expense, net (182) (94) (372) (18) Interest received, net 1,413 472
Current liabilities: Foreign exchange loss (gain), net 813 (1,022) 1,694 (2,035) Income taxes paid (507) (2,041)
Accounts payable and accrued liabilities $ 11,831 $ 14,377 631 (1,116) 1,322 (2,053) Royalties paid (840) (713)
Current income taxes payable 397 1,058 Net (loss) income before income taxes $ (952) $ 1,681 $ (3,785) $ 3,136 Cash flows used in operating activities (7,136) (2,542)
Current portion of lease obligation 292 - Income tax (recovery) expense Investing activities:
Current portion of royalty obligation 1,263 1,496 Current 5 65 (72) 143 Investment in Sensible Medical (6,337) -
Total current liabilities 13,783 16,931 Deferred - 21 - 39 Proceeds from Apicore Sale Transaction - 65,234
Non‑current liabilities 5 86 (72) 182 Redemptions (purchases) of short-term investments 47,747 (49,894)
Royalty obligation 1,725 2,035 Net (loss) income $ (957) $ 1,595 $ (3,713) $ 2,954 Acquisition of property and equipment (169) (116)
Lease obligation 233 - Other comprehensive (loss) income: Acquisition of intangible assets (7,038) -
Other long‑term liabilities 1,152 1,201 Item that may be reclassified to profit or loss Cash flows from investing activities 34,203 15,224
Total non‑current liabilities 3,110 3,236 Exchange differences on translation of foreign subsidiaries (654) 928 (1,488) 2,083 Financing activities:
Total liabilities 16,893 20,167 Repurchase of common shares under normal course issuer bid (3,592) (1,451)
Equity: Item that will not be reclassified to profit or loss: Exercise of stock options 20 256
Share capital 117,897 122,887 Revaluation of investment in Sensible Medical at FVOCI (361) - (244) - Cash flows used in financing activities (3,572) (1,195)
Warrants 1,949 1,949 Other comprehensive (loss) income, net of tax (1,015) 928 (1,732) 2,083 Foreign exchange (loss) gain on cash held in foreign currency (1,929) 520
Contributed surplus 7,783 7,628 Comprehensive (loss) income $ (1,972) $ 2,523 $ (5,445) $ 5,037 Increase in cash and cash equivalents 21,566 12,007
Accumulated other comprehensive income (464) 1,268 Cash and cash equivalents, beginning of period 24,139 5,260
Deficit (52,416) (50,138) (Loss) earnings per share Cash and cash equivalents, end of period $ 45,705 $ 17,267
Total Equity 74,749 83,594 Basic $ (0.06) $ 0.10 $ (0.24) $ 0.19
Total liabilities and equity $ 91,642 $ 103,761 Diluted $ (0.06) $ 0.09 $ (0.24) $ 0.17

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SOURCE Medicure Inc.

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