Medicure (MPH) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue was CAD 5.2 million, down from CAD 6 million year-over-year, mainly due to lower AGGRASTAT sales and increased generic competition.

• Net loss for Q2 2024 was CAD 1.2 million ($0.12/share), compared to net income of CAD 253,000 ($0.03/share) in Q2 2023.

• Loss was driven by higher R&D expenses, increased Marley Drug cost of goods, lower AGGRASTAT revenue, and higher general and administrative expenses.

• Marley Drug revenue remained stable at $2.7 million, with a shift in product mix and increased ZYPITAMAG sales.

Financial highlights

• AGGRASTAT net revenue fell to $1.8 million from $2.6 million year-over-year due to lower volume and pricing pressures from generic competition.

• ZYPITAMAG revenue through insurance channels was $654,000, down from $722,000 year-over-year, but total ZYPITAMAG revenue increased to $1.4 million from $1.3 million due to higher Marley Drug sales.

• Adjusted EBITDA was -$514,000, down from $948,000 in Q2 2023.

• Gross profit for Q2 2024 was $3.0 million, down from $4.2 million in Q2 2023.

• Cash position at quarter-end was CAD 5.8 million (unrestricted cash $5.9 million), with no debt.

Outlook and guidance

• Focus remains on maintaining AGGRASTAT market share, growing ZYPITAMAG and Marley Drug sales, and advancing MC-1 for PNPO deficiency.

• Short-term goal is MC-1 approval and Priority Review Voucher; long-term focus on new intellectual property for large market diseases.

• Management is considering cost cuts and profitability improvements in response to the quarterly loss.