Medexus Pharmaceuticals (MDP) Bloom Burton & Co. Healthcare Investor Conference 2025 summary

Business overview and strategy

• Operates in the U.S. and Canada with a portfolio of about 15 products across hematology, oncology, allergy, dermatology, and autoimmune disease.

• Focuses on licensing and acquiring commercial-stage pharmaceutical products, not traditional R&D, minimizing development risk.

• Management holds about 10% equity, aligning interests with shareholders.

• Business model leverages existing commercial infrastructure for new product launches, maximizing operational efficiency.

• Revenue for the last year was $113 million, with 60%-70% generated in the U.S.; future growth expected to shift this to 90/10 U.S./Canada.

Key growth drivers and product highlights

• Treosulfan (Grafapex) is a major growth catalyst, recently approved in the U.S., and expected to generate over $100 million in annual revenue at an 80% gross margin.

• Early U.S. uptake for Treosulfan is strong, with rapid reimbursement and prior authorizations at key institutions.

• Treosulfan has demonstrated significant clinical benefits, including a 26% improvement in two-year survival and a 56% reduction in all-cause mortality in real-world studies.

• Other core products include IXINITY (hemophilia B), Rupall (allergy), Rasuvo and Metoject (autoimmune), and Nyda (lice), each contributing to a diversified revenue base.

• Rupall faces generic competition but has an anti-generic strategy in place; autoimmune products maintain an 80% U.S. market share.

Financial performance and outlook

• Gross margin on the current portfolio is 55%-60%, with new products like Treosulfan expected to increase this to 80%.

• Quarterly revenue reached $30 million with $5.8 million EBITDA in the last reported quarter, including $2 million in Treosulfan launch costs.

• Free cash flow closely tracks EBITDA, historically around $20 million annually, with temporary dips during product launches.

• Ongoing Treosulfan-related costs are projected at $3-$4 million per quarter for the next seven years.

• Net debt stands at $10-$15 million after a recent $20 million capital raise, with a clean capital structure and strong analyst coverage.