HLS Therapeutics (HLS) Q4 2024 earnings summary

Executive summary

• 2024 marked a significant transition with leadership changes, operational recalibration, and a focus on core product growth, resulting in both Vascepa and Clozaril becoming profitable contributors by year-end.

• Operating expenses were reduced by 10%, and over $21 million in debt was repaid, strengthening the balance sheet and increasing financial flexibility.

• The company exited the Pfizer promotional agreement, brought Vascepa sales in-house, and divested non-core assets, including the Xenpozyme royalty interest.

• New leadership team in place: John Hanna as CFO, Brian Walsh as CCO, and Christine Elliott joined the Board.

• Actions in 2024 set up the company for a return to growth in 2025.

Financial highlights

• Fiscal 2024 revenue was $56.6 million, at the lower end of guidance and down 10% year-over-year.

• Canadian product sales grew 10% in constant currency, with Vascepa net sales up 27% and Clozaril up 1.6% in constant currency.

• U.S. Clozaril net sales were $12.6 million, down 7% year-over-year, mainly due to prior year wholesaler inventory effects.

• Adjusted EBITDA for 2024 was $16.6 million, near the top end of guidance, with Q4 adjusted EBITDA up 4% year-over-year.

• Cash from operations was $8.0 million in 2024, down from $15.8 million in 2023; year-end cash was $17.5 million.

Outlook and guidance

• 2025 Canadian Vascepa net sales expected at CAD 26.5–28.5 million (18–26% growth); Clozaril expected flat at CAD 35.5–36 million.

• U.S. Clozaril net sales expected to decline 2–4% to $12–12.3 million.

• 2025 consolidated adjusted EBITDA guidance is $19.5–20.5 million, up 17–23% year-over-year.

• Royalty revenue expected to decline 50–60% in 2025.

• Revenue projections impacted by Canadian dollar weakness; 2025 revenue would be $1.6 million higher at prior exchange rates.