Medexus Pharmaceuticals Inc. provided a business update and announced its financial and operating results for the fourth quarter and fiscal year ended March 31, 2020. All dollar amounts contained in this press release are in Canadian dollars unless otherwise indicated.
Fourth quarter fiscal 2020 financial highlights**:
Fiscal year 2020 financial highlights**:
Ken d’Entremont, Chief Executive Officer of Medexus, commented, “I am pleased to report we generated strong year-over-year growth in revenue and Adjusted EBITDA* for both the fourth quarter of 2020 and full year. This improvement reflects strong organic growth across each of our key product lines, as well as one month of sales from our new commercial hematology asset, IXINITY®, which we acquired at the end of February 2020. Specifically, we achieved organic year-over-year revenue growth of 27% and IXINITY® contributed an additional $9.5 million for the fourth quarter of 2020. Approximately 85% of IXINITY® revenue for the quarter accrued to Medexus in March and as such, was highly accretive. The integration of IXINITY® is complete and it leverages our existing US based infrastructure, as we have added a product generating approximately $40 million of revenue on an annual basis (based on the twelve-month period ended December 31, 2019) with roughly the same number of employees as we had before the acquisition. We see significant potential for further growth of IXINITY® in the US and other markets. Importantly, we financed this transaction without any equity dilution, using a credit facility, which, together with the solid cash flow of the combined companies, reinforces the strength of our balance sheet and our commitment to driving value for shareholders. Overall, we are proud of our continued progress, continue to believe that we have built a highly scalable business model, and will continue to actively evaluate additional opportunities to license or acquire accretive products that leverage our existing infrastructure in the United States and Canada.”
Operational highlights**:
Operating and Financial Results Summary**
For the three months ended March 31, 2020, total revenue was $25.6 million compared to revenue of $12.7 million for the three months ended March 31, 2019. The increase was due to the organic growth of the Company’s key products as well as the additional revenue from the acquisition of IXINITY®, which contributed approximately $9.5 million.
Gross profit for the three months ended March 31, 2020 was $13.3 million, or 51.8% of sales, compared to $7.7 million, or 60.1% of sales, for the same period last year. The lower gross margin for the three months ended March 31, 2020, when compared to the three months ended March 31, 2019 is due, in part, to the IXINITY® acquisition, which currently has a lower gross margin than the Company’s other key products.
Operating loss for the three months ended March 31, 2020 was $1.9 million compared to $1.8 million for the three months ended March 31, 2019.
Adjusted EBITDA* for the three months ended March 31, 2020 was $4.2 million compared to $0.1 million for the three months ended March 31, 2019. Net loss for the three months ended March 31, 2020 was $2.1 million compared to net loss of $0.7 million for the same period last year.
For the fiscal year ended March 31, 2020, total revenue was $74.4 million compared to revenue of $33.9 million for the fiscal year ended March 31, 2019. The increase was due to the organic growth of the Company’s key products as well as the additional revenue from the acquisition of IXINITY®.
Gross profit for the fiscal year ended March 31, 2020 was $41.8 million, or 56.2% of sales, compared to $20.2 million, or 59.7% of sales, for the same period last fiscal year. The lower gross margin for twelve-month period ended March 31, 2020 is due, in part, to a lower gross margin related to IXINITY® in comparison to the other major product lines. Additionally, during the fiscal year 2020, the Company experienced an increase in discounts given to payors and a reduction in the net selling price of Rasuvo®.
Operating loss for the fiscal year ended March 31, 2020 was $7.7 million compared to $5.7 million for the fiscal year ended March 31, 2019.
Adjusted EBITDA* for the year-ended March 31, 2020 was $6.0 million compared to $2.4 million for the fiscal year ended March 31, 2019. Net loss for the fiscal year ended March 31, 2020 was $6.2 million compared to net loss of $6.3 million for the fiscal year ended March 31, 2019.
Under the Company’s normal course issuer bid, the Company purchased and canceled 919,000 common shares in the market for consideration of approximately $3.7 million during the fiscal year ended March 31, 2020.
The Company’s financial statements and management discussion and analysis (“MD&A”) for the three and twelve months ended March 31, 2020 are available on our corporate website at www.medexus.com and in our corporate filings on SEDAR at www.sedar.com.
*Refer to “Non-IFRS Financial Measures” at the end of this press release.
**Refer to “Cautionary Note Regarding Comparative Financial Information” at the end of this press release.
Conference Call Details
Medexus will host a conference call on Tuesday, June 23, 2020 at 8:00 AM Eastern Time to discuss the Company’s financial results for the fourth quarter and fiscal year-ended March 31, 2020, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 844-369-8770 for Canadian and U.S. callers or +1 862-298-0840 for international callers, or on the Company’s Investor Events section of the website: www.medexus.com/news-events.
A webcast replay will be available on the Company’s Investor Events section of the website (www.medexus.com/news-events) through September 23, 2020. A telephone replay of the call will be available approximately one hour following the call, through June 30, 2020, and can be accessed by dialing 877-481-4010 for Canadian and U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 35423.
About Medexus Pharmaceuticals Inc.
Medexus is a leading specialty pharmaceutical company with a strong North American commercial platform. The Company’s vision is to provide the best healthcare products to healthcare professionals and patients, through our core values of Quality, Innovation, Customer Service and Teamwork. Medexus is focused on the therapeutic areas of auto-immune disease, hematology and allergy. The Company’s leading products are: Rasuvo™ and Metoject®, a unique formulation of methotrexate (auto-pen and pre-filled syringe) designed to treat rheumatoid arthritis and other auto-immune diseases; IXINITY®, an intravenous recombinant factor IX therapeutic for use in patients 12 years of age or older with Hemophilia B – a hereditary bleeding disorder characterized by a deficiency of clotting factor IX in the blood, which is necessary to control bleeding; and Rupall®, an innovative prescription allergy medication with a unique mode of action.
For more information, please contact:
Ken d’Entremont, Chief Executive Officer
Medexus Pharmaceuticals Inc.
Tel.: 905-676-0003
E-mail: ken.dentremont@medexus.com
Roland Boivin, Chief Financial Officer
Medexus Pharmaceuticals Inc.
Tel.: 514-762-2626 ext. 202
E-mail: roland.boivin@medexus.com
Investor Relations (U.S.):
Crescendo Communications, LLC
Tel: +1-212-671-1020
Email: mdp@crescendo-ir.com
Investor Relations (Canada):
Frank Candido
Direct Financial Strategies and Communication Inc.
Tel: 514-969-5530
E-mail: frank.candido@medexus.com