Trump to appeal tariff ruling, warns of economic consequences
Biosyent Inc. reported strong financial results for Q2 2025, demonstrating significant year-over-year growth across key metrics. The company achieved a 14% increase in revenue, reaching $10 million, and a 28% rise in net income after tax. The stock showed a modest increase of 0.78%, closing at $11.59 in after-hours trading. According to InvestingPro analysis, the company’s stock is currently trading near its 52-week high, with an impressive financial health score of 3.52 out of 5, rated as "GREAT." InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels.
Key Takeaways
- Biosyent Inc. reported a 14% year-over-year revenue growth in Q2 2025.
- The company achieved a 28% increase in net income after tax.
- Stock price rose by 0.78% in after-hours trading.
- Feramax 45 continues to drive growth, with a new product launch planned for 2026.
Company Performance
Biosyent Inc. has maintained its impressive growth trajectory, marking its 60th consecutive profitable quarter. The company’s diversified product portfolio and strong brand presence in the Canadian market have contributed to its robust financial performance. The acquisition of Tibeliya Global has also bolstered revenue, adding $1.3 million in incremental sales. InvestingPro data reveals the company maintains a strong balance sheet with minimal debt (Debt/Equity ratio of just 0.03) and an impressive gross profit margin of 78.5%. For deeper insights into Biosyent’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Financial Highlights
- Revenue: $10 million, up 14% year-over-year
- EBITDA: $2.8 million, up 35%
- Net Income After Tax: $2 million, up 28%
- EBITDA Margin: 27%
- NIAT Margin: 20%
Outlook & Guidance
Biosyent Inc. remains focused on revenue growth and product diversification. The company plans to launch a new Feramax product in 2026 and is conducting trials for GelClare at cancer centers. The management has reiterated its strategy of reinvesting earnings into growth initiatives.
Executive Commentary
CEO Rene Gorham emphasized the company’s commitment to growth, stating, "We are a capital light, cash generating business." He also highlighted the premium pricing strategy and focus on cash-paying consumers, which have been instrumental in driving profitability.
Risks and Challenges
- Market competition: Increased competition could impact market share.
- Regulatory changes: Potential changes in healthcare regulations could affect operations.
- Supply chain disruptions: Any disruptions could impact product availability and sales.
- Economic conditions: Macroeconomic pressures could affect consumer spending.
Biosyent Inc.’s strong Q2 performance underscores its effective growth strategies and solid market position. The company’s continued focus on innovation and revenue growth is expected to support its long-term success, though challenges such as market competition and regulatory changes remain considerations for investors. InvestingPro analysis shows the company maintains a healthy current ratio of 4.9x and has demonstrated consistent revenue growth with a 5-year CAGR of 10%. Get access to 8 more exclusive ProTips and comprehensive financial metrics by subscribing to InvestingPro.
Full transcript - Biosyent Inc. (RX) Q2 2025:
Rene Gorham, President and CEO, BioScient Inc: Hello, and welcome to the BioScient Inc q two and first half twenty twenty five results presentation. My name is Rene Gorham, and I’m the president and CEO of the company. Before I dive into the presentation, I just wanna draw your attention to our forward looking statements disclaimer, and I’m likely to make some during this presentation. So this presentation is being recorded in the August. I wanted to welcome you if you’re a first timer, to this presentation.
We do this on a quarterly basis. You’ll find the link in our press release if that’s not how you got here in the first place. And, also, we often put out a commentary if there’s a significant event in the company. We also do a similar thing. We’ll typically link it in a press release if it’s always required.
If you are a shareholder or a frequent viewer, welcome back. We’re recording this presentation, as I said, in the August. So we not only have we had a good start to the year, which I’m gonna speak about in a couple of moments, but we we really are halfway through the third quarter and the business across the board on a Canadian pharma, international pharma and legacy basis is performing well. So that momentum that we’ve built up through the first six months of the year has carried on and we see good momentum as we work towards the latter part of the third quarter. So let’s dive into revenue for the quarter.
On a total company basis, revenue was just over $10,000,000 representing 14% growth to the year ago. Overall, Canadian Pharma had a record quarter. Our EBITDA was just under 2,800,000.0, a 35 growth to the year ago. And on a NEAT basis, once again also strong, over $2,000,000 at 28% growth to the year ago. Of note here are the margins that we’re earning on EBITDA and NIAT.
You’ll see 27% EBITDA margin and 20% NIAT margin. On a quarter, compares favorably if you trail back to the two previous years. These are actual quarter performance, so about 8,000,000 in ’23, about 9,000,000 ’24, and just over 10,000,000 this year. If we then look at a six month basis, you see that growth trend looks even sharper if you trail back the last couple of years. So on a six month basis, sales up 27% to the year ago, just over $21,000,000.
And that was driven by growth right across the board from Canadian Pharmaceutical, International Pharma, and our legacy business. You see strong EBITDA performance up 40% to the year ago, just under $6,000,000, and our NIAT performance also strong at 30% over the year ago at just over 4,300,000. EBITDA and net margins strong at 2821% respectively, and looking back at the growth over the last couple of years, you see strong performance both on revenue and profit. So if we dive into the the business units or the brands, you see in the quarter Canadian pharma sales at $9,300,000, that was up 9% versus the year ago. And I won’t go line by line, but you’ll see a a couple of notable things.
Strong performance by Feramax and Tebella, and not such good results with a couple of the other products worth just calling out. Combogesic has kind of been lagging our expectations now for some period of time. And Inofolic is an interesting one, and we experience this with launch products. That that product is still kind of considered a launch product in our portfolio. And you see down 9% in the quarter, up 94% on a six month basis.
So that does happen with launch products where you’ll have kind of inventory builds throughout the course of the year, and that might distort a quarter performance. Repagyne down 13% in the quarter, but more or less flat for the year, which is below our expectation, but kind of in line, it’s not a key promoted product for us. We do put our promotional effort against Fairmax and Tebella. GelClare, we have experienced some headwinds on that on that product, both on a quarter and a YTD basis. We are, just launching four experience trials at cancer centers in BC, Ontario, Quebec, and Nova Scotia.
And we’re going to springboard off those real world experience trials to determine what our promotional effort should be on this product. So we’ve pulled back somewhat on our promotional effort until those experience trials have been completed. So you’ll see middling performance on the GelClare product as we go forward through the balance of the year. You see both the international and legacy business performing well, both on a quarter and YTD six month basis. So how does this then flow through to an earnings per share?
What you see here is a chart showing trailing twelve months ending June 30. If you go to the far right hand side, that is the, 2025 trailing 12 earned 72¢ in that period of time, 18¢ in the quarter. If you compare that back to the year ago trailing twelve months of 60¢, and then you can go back further to the trailing twelve months ending in 2023. June 30, you see very strong performance on the business, and that is, you know, coming from both revenue growth and our share buyback activity. So very active in ’23, ’24, somewhat active in the beginning of this year, a less active second quarter with NCIB, but that certainly has also contributed to EPS performance.
Of note, the second quarter this year represented our sixtieth consecutive profitable quarter. We came profitable for the first time back in 2010. A few things I’d like to touch on in terms of highlights on a YTD basis. We announced last September that we had acquired the Tibeliya Global business, a hormone replacement therapy product that we also commercialized in Canada. With that, we acquired a number of customers around the world.
We started shipping that product in the first quarter, which we’ve already reported to you. We did kind of restocking and further shipments to both customers that we’d shipped to in the first quarter and additional customers. So year to date, we’ve generated $1,300,000 of incremental revenue coming from the Tibelius Global business. And you’ll now see that featuring essentially on a quarterly basis. There’ll be some regular cadence to that business.
We’re also finding the Feramax international business with greater frequency as well. So we’re kind of moving away from having to talk about an odd order pattern and shipping pattern with our international pharmaceutical business. We announced as well a dividend to be paid in September of 5¢. This represents an 11% increase over the 2024 dividend payments. So we’ve now paid dividends in March, June, and have announced the September dividend.
So overall 11% up from the 2024 period, and that will continue to be a regular feature of our returning capital to shareholders. We’ve spoken for some period of time about the strong performance of Fairmax in the Canadian market. Is trusted by doctors and pharmacists, and in fact by hundreds of thousands of patients, a majority of whom are women, because the women are the main consumers of iron supplements in Canada. So we’re the number one recommended amongst the health care professionals. That brand continues to perform well in the market.
I already touched on NCIB activity down somewhat when you compare it to previous years, but on a YTD basis we’ve bought back 19 and a half thousand shares. I wanna touch on trade and tariffs. I know that it’s a hot topic really on both sides of the border in The United States and in Canada. I do get asked this from time to time. We’ve been reporting now since the first quarter.
In Canada, there still, you know, remains a fair degree of uncertainty in terms of how proposed tariffs or what the arrangements will be between Canada and The United States. There is a trade agreement in effect. To date, we have had essentially no impact directly from any tariffs or tariff talk. We do not do much business into The United States. We’ve got a very small amount of legacy sales into The United States, and our inventory was already positioned.
And in fact, we do have a free trade agreement in effect. So we don’t expect any impact on our business this year. We’re obviously now thinking about 2026, 2027. We also do not know what the outcome will be of discussions and or negotiations that are occurring between Canada and The US. Historically pharmaceutical products have traveled the world, not just between Canada and The United States, but have traveled the world tariff free.
There is some discussion about perhaps that changing. We do not sell pharmaceutical products into The United States, and so I would say any impact on us from tariffs will be counter tariff, and that’ll be self inflicted by the Canadian government, and we just don’t know what that will look like, and that it will play out over time. The other thing that we keep our eye on is what impact will tariffs and tariff talk have on Canadian consumers and the Canadian economy. And, you know, I’m not gonna go into a big discussion about performance of the Canadian economy. What I will say is that we have not seen any impact on our business and our brands in a material way on our business.
Negative, positive, it’s been of business as usual for us. We do promote premium priced products, and a lot of our business is done to cash paying consumers. So that’s something we keep our eye on, but as yet no impact and we don’t expect through the balance of this year. I’ve already talked about Fairmax and its strong performance. It’s now ten years in a row the most recommended amongst pharmacists and physicians, and we are leveraging off of that performance and that trust that we’ve built in the Canadian market.
We’ve been executing a Fairmax lifecycle strategy now for quite a number of years. We’ve reformulated the compound. We’ve reintroduced products with the new compound. We’ve launched new products. Feramax forty five is a new product launched just over two years ago.
It’s still considered a launch product in the, you know, Biosign vernacular, and it has been performing well. It’s growing at high double digit versus year ago, and certainly contributing both incremental revenues and overall revenue performance for the Fairmax brand. We are preparing a new Fairmax product to be introduced into the market in 2026, and that will represent an opportunity for kind of a new use case for oral iron supplementation, and we expect will further augment the sales of Feramax in Canada, and in fact maybe a new use case and new consumers into the category overall across Canada. So we have been busy over the last five years with innovation, product launches, and acquisition, That acquisition being the Tibeliya global hormone replacement therapy product last September, which I’ve already spoken about it contributing now to revenue both in Q1 and Q2 of this year. So as we kind of move off of that innovation and launch activity, what impact has that had on our business?
And you can see that I made reference to us becoming profitable in 2010, and you can see our portfolio has grown significantly. The products, brand tags that you see on the left hand side above 2010 are the products we had in market in 2010, and on the right hand side is what’s in market today. This chart just shows you ending 2024, We’ve essentially gone from about a million and a half dollars in sales to, 35,000,000 plus. So a 21 times growth in revenue and our netting going up a 140 times over that period of time. So we’re working hard to diversify our portfolio and introducing innovative products into the Canadian market, but keeping an eye on making sure that we’re we’re managing a profitable business.
So that eye on quality also translates into keeping an eye on return on equity. This chart shows you in the blue bars our cash position. Ending June 30, you can see this year we’re at 20 just under $27,000,000, so in a range, a pretty tight range, by design over the last several years. We manage that in a combination with NCIB activity, buying back shares at our dividends. In the trailing twelve months ending 06/30/2025, our cash from operations was $12 m.
Of that, we’ve bought back $4 m worth of shares in those twelve months ending June 30, and we’ve returned $2.2 in the form of dividends to shareholders. So net net, that works out to a 23% return on equity. So strong performance, focused on quality, and working hard to grow the business and grow our diversity of our portfolio. Brings me to some comments about what our intentions are with respect to our strong balance sheet. I do get asked that question from time to time.
And the easy answer is the first dollar that we’re generating goes to revenue growth. So as in we continue to invest in revenue growth and diversifying our portfolio. I think we’ve demonstrated that now over a number of years, that we continue to grow the top line, deliver bottom line results, and diversify our portfolio. We are a capital light, cash generating business. And even with seven new product launches in the last five years and the acquisition of Tibeliya Global, we are in a strong position with respect to our balance sheet.
So we’ve bought back almost $23,000,000 worth of shares starting in the 2018, a total of 3,100,000.0 shares repurchased. And we initiated a dividend program in the 2022 and returned $6,200,000 to shareholders over that period of time. So we’re now, you know, creeping up on $29,000,000 return to shareholders, but with a strong business, with a growing top line, a growing bottom line, and an eye on continuing to move forward with with new products and new innovations in the marketplace. I’d like to kinda work towards wrapping up the presentation today with a look at our essentially, our cap table. The reason I land on this, if you’re new to the story, we have discontinued or paused use of share options as equity, a form of equity compensation in our business.
We did that about five and a half years ago. I think the last option issued was in March 2020, And we’ve replaced that with a restricted share unit program where we issue restricted share units, and then we go into the open market using our strong balance sheet, and we buy shares and hold those shares in trust. So you’ll see here RSU shares held in trust of just over 214,000 shares, and RSUs outstanding of just under 210,000. So those two match up fairly tightly, and that’s how we kind of maintain a tight cap table without being dilutive. And, you know, some people call that shareholder friendly.
I I call it just kind of good common sense management. And we are shareholders. Directors and management of BioSci are significant shareholders of the company, and so we’re really focused on running a strong, profitable, growing business and delivering value on a per share basis over time. Thank you for your continued interest and support, and look forward to reporting the balance of 2025 to you as the year progresses. Thank you.
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