Medicure (MPH) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 was $5.2 million, consistent with the previous quarter and up from $5.0 million in Q3 2023, driven by Marley Drug and ZYPITAMAG sales.

• Net income reached $680,000 ($0.07 per share), a significant increase from $84,000 in Q3 2023 and a loss in the previous quarter, mainly due to a legal settlement and higher ZYPITAMAG sales.

• Adjusted EBITDA for Q3 2024 was negative $467,000, down from $429,000 in Q3 2023, impacted by higher costs and expenses.

• Focus areas include maintaining AGGRASTAT sales, growing ZYPITAMAG and Marley Drug, developing MC1 for PNPO deficiency, and advancing a new chemical entity.

Financial highlights

• AGGRASTAT revenue declined to $1.9 million from $2.4 million year-over-year due to increased generic competition.

• Marley Drug revenue increased to $2.7 million from $2.2 million, with ZYPITAMAG sales through Marley Drug rising to $815,000.

• ZYPITAMAG revenue through insured channels rose to $553,000 from $398,000 year-over-year.

• Gross profit for Q3 2024 was $2.8 million, down from $3.6 million in Q3 2023.

• Other income included a legal settlement of $1.9 million, positively impacting net income.

Segment performance

• AGGRASTAT cost of goods sold increased to $720,000 due to an inventory write-down.

• ZYPITAMAG cost of goods sold rose to $299,000, reflecting higher sales volume and amortization.

• Marley Drug cost of goods sold nearly doubled to $1.3 million, reflecting higher sales volume and product mix.

• BRENZAVVY sales through Marley Drug reached $336,000, up 34% sequentially.

• Marley Drug’s revenue growth was driven by increased ZYPITAMAG sales and a shift toward e-commerce and fulfillment partnerships.