Earnings call transcript: Medexus Pharmaceuticals Q4 2025 sees revenue dip

Medexus Pharmaceuticals reported a decline in its fourth-quarter 2025 revenue to $24.8 million, down from $26 million the previous year. Despite the revenue dip, the company achieved a record adjusted EBITDA of $20.2 million for the fiscal year. The launch of Grafifex, their new product, showed promising early sales figures. The company’s stock saw a modest increase of 2.13%, closing at $3.35. According to InvestingPro data, the stock has delivered an impressive 94.77% return over the past year, with current trading levels near $2.44. InvestingPro analysis suggests the stock is currently fairly valued based on their proprietary Fair Value model.

Key Takeaways

• Fourth-quarter revenue decreased year-over-year.
• Record full-year adjusted EBITDA and net income were achieved.
• Grafifex launch showed strong early performance with $600,000 in Q4 revenue.
• Stock price increased by 2.13% following the earnings report.

Company Performance

Medexus Pharmaceuticals experienced a decline in quarterly revenue but achieved record earnings for the fiscal year 2025. The company’s strategic focus on Grafifex, a new product targeting the transplant market, appears promising, with significant early adoption by transplant centers and coverage by major commercial payers. InvestingPro data reveals the company maintains a healthy gross profit margin of 57.89% and an attractive EV/EBITDA ratio of 5.24x, indicating efficient operations. The company’s overall financial health score stands at "GREAT" according to InvestingPro’s comprehensive analysis system.

Financial Highlights

• Q4 Revenue: $24.8 million, down from $26 million year-over-year.
• Full Year Revenue: $108.3 million, compared to $113.1 million the previous year.
• Q4 Adjusted EBITDA: $2.3 million, down from $4.4 million year-over-year.
• Record Full Year Adjusted EBITDA: $20.2 million.
• Record Full Year Net Income: $2.2 million.

Outlook & Guidance

Medexus expects Grafifex to be cash flow accretive by the fourth quarter of 2026, with an annual product gross margin projected at 80%. The company anticipates its base franchises to remain flat or slightly decline, while continuing to invest in Grafifex’s commercialization efforts. Analyst consensus from InvestingPro is highly bullish, with price targets ranging from $2.52 to $7.31, suggesting significant potential upside. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report, available for over 1,400 stocks including Medexus Pharmaceuticals.

Executive Commentary

CEO Ken Dontermont expressed optimism about Grafifex, stating, "We are seeing good durable demand," and noted that the product’s price is exceeding expectations. He also highlighted confidence in Grafifex becoming a critical standard of care in the transplant market.

Risks and Challenges

• Potential market saturation in the transplant sector.
• Dependence on Grafifex’s successful commercialization.
• Macroeconomic pressures that could affect healthcare spending.
• Regulatory hurdles associated with new product launches.
• Competitive pressures from existing and emerging therapies.

Q&A

During the earnings call, analysts inquired about the reimbursement process for Grafifex, to which executives responded positively, citing smooth progression. Questions also focused on the company’s confidence in achieving peak sales targets, with management expressing strong belief in the product’s potential.

Full transcript - Medexus Pharmaceuticals Inc (MDP) Q4 2025:

Conference Operator: Greetings. Welcome to the Medexis Pharmaceuticals Fourth Quarter and Fiscal Year End twenty twenty five Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded.

I will now turn the conference over to your host, Rellenberg, Investor Relations of of Medexis. You may begin.

Victoria Rellenberg, Investor Relations, Medexis Pharmaceuticals: Thank you, and good morning, everyone. Welcome to the Medexis Pharmaceuticals fourth quarter and fiscal year twenty twenty five earnings call. On the call this morning are Ken Dontermont, chief executive officer and Brendan Bushman, chief financial officer. If you have any questions after the conference call or would like further information about the company, please contact Adelaide Capital at (480) 625-5772. I would like to remind everyone that this discussion will include forward looking information as defined in Canadian securities laws that is based on certain assumptions that Medexis believes to be reasonable in the circumstances but is subject to risks and uncertainties.

Actual results may differ materially from historical results or results anticipated by the forward looking information. In addition, the discussion will also include non GAAP measures such as adjusted EBITDA, adjusted EBITDA margin, and adjusted gross margin, which do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. For more information about forward looking information and non GAAP measures, including reconciliations to net income and loss, please refer to the company’s MD and A, which along with which along with the financial statements are available on the company’s website at www.medexas.com and on CEDAR Plus at www.sedarplus.ca. As a reminder, Medexas reports on March 31 fiscal year basis. Medexas reports financial results in US dollars, and all references are to US dollars unless otherwise specified.

I would now like to turn the call over to Ken Dontormont.

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Thank you, Victoria, and thank you everyone for joining us on the call today. The last few months have been an exciting and dynamic time at Medexis as we have begun the commercialization efforts for Grafifex, the brand name for Triosulfan in The United States. I’m pleased to report that Medexis achieved $600,000 of product level revenue for Grafifex in fiscal Q4 twenty twenty five after becoming commercially available late in February relative to 2,700,000.0 of GrafiPEX personnel and infrastructure investments in the quarter and our preliminary estimates indicate that we have already generated over 2,500,000.0 of product level revenue in fiscal Q1 twenty twenty six. We continue to expect that Grafapax will be accretive to quarterly operating cash flows by fiscal Q4 twenty twenty six, that’s calendar Q1 twenty twenty six. Although we continue to assess the strong market response and performance of key indicators for any updates to this expectation.

We continue to expect that annual product level adjusted gross margin of Grafapix will ultimately be approximately 80%, although as a preliminary estimate, product level adjusted gross margin will be slightly higher in the initial months after commercial launch, primarily due to the evolving reimbursement dynamics for the product. Our fiscal Q4 net revenue was $24,800,000 a decrease compared to $26,000,000 for the same period last year. Our fiscal Q4 twenty twenty five adjusted EBITDA was $2,300,000 a decrease compared to $4,400,000 for the same period last year. This decrease was primarily due to $2,700,000 of Grafapax personnel and infrastructure investments over the quarter to support our commercialization efforts for the product. Our net income of negative $600,000 for the quarter is a decrease from the positive $800,000 for the same period last year and negative operating income of $1,200,000 is a decrease of $2,000,000 compared to positive $800,000 for the same period last year.

Again, decreases in these metrics are primarily due to the investment we are making in GrapepEx commercialization efforts at this time. We’re also proud of the financial results we’re reporting for our fiscal year twenty five. We achieved record adjusted EBITDA and record net income in fiscal year twenty five, both primarily due to effects of our ongoing financial discipline efforts and further supporting the stability of our base business base portfolio. Our fiscal year twenty twenty five net revenue was 108,300,000.0 which compares to 113,100,000.0 in fiscal twenty twenty four. We reported adjusted EBITDA of 20,200,000.0 for fiscal year twenty twenty five which compares to 19,500,000.0 in fiscal year twenty twenty four.

We also produced a net income of 2,200,000.0 compared to negative 200,000.0 in the fiscal year twenty twenty four. Turning to our specific products, the key business update for this quarter is the commercialization of Grafapix. We initiated the execution of a commercial launch of Grafapix in the first half of calendar year twenty twenty five with product commercially available in The United States in February. The launch, which was originally expected to be occur in April of twenty five followed swiftly on the FDA’s approval of the product in January, allowing us to begin generating product level revenue earlier than originally planned. We have seen a positive market response to Grafapix to date with the progress consistent with our expectations.

Four large commercial players together covering an approximate thirty four million patient lives and 12 individual healthcare institutions representing seven percent of the 180 transplant centers in The United States have made positive formulary inclusion determinations. This is a promising indicator of the products commercial potential and additional 15 payers have added Grafapax on their prior authorization list. Wholesaler data shows that 34 of the 180 transplant centers have already ordered Grafapix for procedures in their institutions. We are very happy with Grafapix product performance to date, response from the market and the attention of Triosulfan from the medical and scientific community has been excellent. In Canada unit demand for Trucondo, the brand name for Triosulfan in Canada grew by 70% over the trailing twelve month period ending 03/31/2025.

To date, British Columbia, Ontario and Quebec have executed listing agreements to reimburse Trucondo in those provinces following a positive PCPA decision in November of twenty four. Xenity unit demand in The United States increased by 1% over the trailing twelve month period ending December ’25. We expect that unit demand will remain relatively stable with only slight continued decreases in the near term. RUPEL unit demand in Canada increased by 14% over the trailing twelve month period ending 03/31/2025. RUPEL’s market exclusivity granted by Health Canada expired in January 25.

RUPEL has now begun to face generic competition in Canada and we have initiated a strategy to support the product in this context. Versuvo unit demand in The United States and Medojet unit demand in Canada both remained strong during fiscal Q4 twenty twenty five although the factors we have discussed in the past continue to affect product level revenue. I will now turn the call over to Brendan who will discuss our financial results in more detail.

Brendan Bushman, Chief Financial Officer, Medexis Pharmaceuticals: Thank you, Ken. We are thrilled to be posting record adjusted EBITDA and record net income for our fiscal year 2025 as we continue to realize the benefits from our ongoing financial discipline efforts and streamlined capital structure. Net revenue for fiscal Q4 twenty twenty five was $24,800,000 a decrease of $1,200,000 compared to $26,000,000 for the same period last year. Net revenue for the full year was $108,300,000 a $4,800,000 decrease compared to $113,100,000 for fiscal year twenty twenty four. The decrease in fourth quarter revenue is primarily due to the timing of customer buying patterns of Exenity, which we previously disclosed as having a $2,000,000 beneficial impact in fiscal Q3 twenty twenty five and has had a proportionately negative impact in fiscal Q4 twenty twenty five.

This was offset by $600,000 in revenue from Grafapix realized during fiscal Q4 twenty twenty five. Gross profit was $12,400,000 and $56,600,000 for the three and twelve month periods ending March 25 compared to gross profit of $13,300,000 and $59,500,000 for the same periods in the previous year. Gross margin was 50.252.2% for the three and twelve month periods ending March 25, which are comparable to the 51.252.6% for the same periods in the previous year. Selling, general and administrative expenses were $12,200,000 and $43,200,000 for the three and twelve month periods ending March 25 compared to $10,400,000 and $44,900,000 for the same periods in the previous year. As Ken mentioned, we have begun making more significant investments in personnel and infrastructure for the commercialization of GrafiPEX, which are reflected in those SG and A expenses.

These investments totaled $2,700,000 and $5,200,000 for the three and twelve month periods ending March 25 and are expected to stabilize at around 3,000,000 to $4,000,000 for fiscal Q1 twenty twenty six and then around $4,000,000 per quarter thereafter. Adjusted EBITDA for the three and twelve month periods ending 03/31/2025 was $2,300,000 and $20,200,000 compared to $4,400,000 and $19,500,000 for the three and twelve month periods in the prior year. The $2,100,000 decrease in quarterly adjusted EBITDA was primarily due to the $2,700,000 of GrafiPEX personnel and infrastructure investments discussed earlier. Net income for the three and twelve month periods ended 03/31/2025

David Martin, Analyst, Bloom Burton: was negative $600,000 and positive $2,200,000 compared to net income of positive $800,000 and negative $200,000 for the same period last year. Cash on hand of $24,000,000 at 03/31/2025, compared to $8,400,000 at December at 03/31/2024. The primary factor in this net increase in cash was Medex’s completion of

Brendan Bushman, Chief Financial Officer, Medexis Pharmaceuticals: a public offering of common shares in January 2025. We continue to generate cash from our operating activities with operating cash flow of $2,300,000 and $24,000,000 for the three and twelve month periods ending March 25, compared to $1,600,000 and $18,700,000 for the three and twelve month periods in the prior year. As of 03/31/2025, we had a combined $37,600,000 outstanding under our two BMO credit facilities, which consists of 3,500,000.0 drawn under our revolving credit facility and the remainder outstanding under our term loan facility. In fiscal Q1, twenty twenty six, we entered into amendments with BMO allowing for partial principal repayments and adjustments under our term and revolving credit facilities, as well as adjustments to the interest rate and financial covenants. These actions lowered our quarterly principal payments from $3,300,000 quarter to $1,100,000 per quarter and meaningfully reduces our interest expense.

Looking forward to fiscal year twenty twenty six, we are in a great position to support our growth strategy, while funding with cash on hand, the $15,000,000 remaining regulatory milestone that is payable under our Graphitex agreement, particularly given the favorable payment terms we negotiated in the fourth amendment we announced in December 2024. As always, there can be variability in quarter to quarter results, but we look forward to continuing to build the company and its portfolio in the coming quarters and beyond. Operator, we will now open the call to analyst questions.

Conference Operator: Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue.

Andre, Analyst: Thanks, operator. Hi, Ken and Brendan. Just looking at the initial launch of Grafifax, it looks decent so far. Can you discuss

David Martin, Analyst, Bloom Burton: some

Andre, Analyst: of the physician feedback that you’ve received so far? And has there been any pushback relative to using busulfan? Thanks.

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Thanks, Andre. Yeah, so the physician level feedback to date has been very positive. The initial uses that we saw in Q1 were primarily pediatric patients, which was expected. That’s where there is the greatest need for Grafapix. And now that formulary inclusions are happening, we’re beginning to see the adult patients as well, which is also expected.

I would say that, you know, expected, triosulfan is a significant advancement in this space where there’s been little advancement over decades. And so there’s keen interest in the drug and I think we’re experiencing that with the uptake and the revenue that’s beginning to be generated.

Andre, Analyst: And so can you also just looking at your business development pipeline in terms of progression, do you have anything that you think could possibly fill in for Gliolan and terbinafine or is the sole focus right now the Grafapax launch?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah, by far Grafapax is the best opportunity we have in front of us. I mean, it’s potential of over 100,000,000 in revenue when the two products that you referenced, you know, had no chance of, you know, being anywhere close to that and have, you know, a margin profile that’s not nearly as good as Grafapax. The margin profile on GlucoLabs which we gave back last quarter was 50%. Whereas Grafapax is 80% and as we mentioned in the comments here today, it’s coming in above that. So no, absolutely.

The focus is and ought to be on Grapepix and the rest of our base business, which is obviously performing very well.

Andre, Analyst: Thanks, Ken.

Conference Operator: Your next question for today is from Michael Freeman with Raymond James.

Michael Freeman, Analyst, Raymond James: Hey, good morning, Ken and Brendan. Congratulations on the strong early launch. These are this is really encouraging. These are encouraging numbers. I wonder if we could talk a little bit more about the launch.

If you could, as much as you can, share the ordering patterns that you’re seeing now, like perhaps rates of reordering? And another question related to coverage. You mentioned that there are 15 payers that are now covering the drug under prior authorization. Will it take, what generally does it take, to move payers like that from prior auth to full indirect coverage?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah, thanks Michael. Two good questions. So let’s start with the ordering patterns. Ordering patterns are kind of as we expected. I mean, as you know, we launched this drug in Canada some years ago and we saw pediatric patients being the first.

That’s where there is the greatest need for many reasons and then adults follow. And so that is what we’re seeing. The first couple of months, remember we’re still first quarter really of launching this drug. So first couple months largely was pediatric patients on prior authorizations because there was great need. Now we’re seeing adult hospitals ordering as they include it on their P and T committee.

And so those are obviously bigger volume patients and bigger volume hospitals typically. So we’re seeing strong sales come out of those hospitals that are adding it to the P and T committee. And so we would expect that trend to continue, more adults as we go forward because now we’re seeing P and T decisions being made. It takes one to six months to get a decision from a PMT committee within an institution. So we would expect significant numbers of those happening in the coming weeks and months.

And so we would expect to see revenue continue to accelerate as we go through that. With respect to the prior authorizations, right, so there are 15 have it on their prior authorization list. That just facilitates and enables these one offs. And clearly, we are talking to all of them and working at having it listed as a fully paid benefit. So that just takes time.

So I think really the PA listing is really just a matter of facilitating what can be a cumbersome process. And then as we go forward, a full listing just makes access that much easier.

Michael Freeman, Analyst, Raymond James: Excellent. Thanks, Ken. On ordering patterns, you suggested that or I guess you mentioned in the press release that that 34 of a 180 transplant centers have already ordered GrafiPEX. Do you have the numbers on on the number of centers that have reordered the drug?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: We do. I don’t have them off the top of my head, but it is significant. So, most of the orders have each month, the number of orders have accelerated. And therefore, we are seeing more and more reorders also. So it seems to be that a hospital that places a first order tends to accelerate their order pattern as we go forward.

Michael Freeman, Analyst, Raymond James: Okay. Thank you. And then just briefly on Xfinity. I wonder if you could speak to your view on the durability of of Xfinity sales. You guys have done very well on improving the COGS for this drug, appears to be this is looking more durable than than we had originally expected.

I wonder if you could just provide an outlook there.

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah. Think you’re right. You know, we’ve been cautious with Xfinity because we’ve seen some ups and downs over the quarter quarters. And now we’re seeing good durable demand, which obviously is the key driver for the drug. It’s plus or minus a percent or two quarter to quarter.

So it has been quite steady and durable. The pediatric indication I think has helped to some degree. So that’s been good news. And I think just going forward, yeah, we just see a steady kind of durable product for us. And, you know, the team has done a great job even with fewer resources.

You know, they continue to do a really good job.

Michael Freeman, Analyst, Raymond James: Alright. Thanks very much. I’ll pass it on there.

Conference Operator: Your next question for today is from David Martin with Bloom Burton.

David Martin, Analyst, Bloom Burton: Good morning. First question, for the payers that require prior authorization, what are the conditions that must be met for the reimbursement of the drug and how quickly are the authorizations being turned around?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Hey, Debbie. Good question. So we’re not seeing any limitations. And so no limitation of dose. Some of the full listings have stuck to the label, which was fully expected.

But the prior authorizations, we’re not seeing any real limitations. Price has not been an issue. So they’re happening relatively quickly. I do recall most of these are with pediatric patients where there’s a great need.

David Martin, Analyst, Bloom Burton: You mentioned price. Are you getting a full wholesale acquisition cost? Or are there adjustments, to net price?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah. It’s a great question. So price is coming in, above expectations. So we had expected certain gross to net, and we’re actually doing significantly better than expectation.

David Martin, Analyst, Bloom Burton: Okay. And then lastly, are you tracking performance at the call point level? For instance, how many doctors and treatment centers have been called on and what percent of them are using GrafiPEX or said they will? And if they do start using it, say for pediatric patients, initially, it all pediatric patients or a subset of them? And how do they decide which ones they will treat or won’t treat?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah, great question. So the REACH first question, I think, was REACH. It’s been excellent. We have access to these hospitals. It’s been very good, which was expected.

This is an innovative product, and they do want to know about about it and have access to it. So access has been really quite good. Your second question, just remind me please.

David Martin, Analyst, Bloom Burton: So you know how many centers and how many doctors have you called on and what percent of them are using Grafapax or have said they will?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah. So the number of called on remember, there’s a 180, transplant centers. Seventy seventy of them do eighty percent of the transplants. And so we’ve reached, I think, a company like 134 of the 180. So obviously it’s a very high percentage of the 70 that do most of these transplants.

So we have access to most of them. There are a large number of hospitals that have got it under P and T review. So that review has started, and the number that we just released today are the ones that have finished with a positive decision. I don’t believe we’ve had any that have been negative. So it’s being added to formularies as we go forward.

David Martin, Analyst, Bloom Burton: And then will they pick and choose patients who they treat with it or will it be all patients? How do you see that?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: We expect to get a share of patients. And so I think, you know, we’ve said historically that our share in Canada of pediatric patients is currently about sixty percent, six zero. And we would expect that our share of adult patients should end up being twenty five percent to thirty five percent. So that’s kind of the number. And so yes, they will stratify the patients based on their condition and their comorbidity index primarily.

And there are some patients that can tolerate busulfan, so I wouldn’t be surprised to see busulfan continue to be used in certain patients. There are other patients that cannot and therefore triosulfan fills a very important void.

David Martin, Analyst, Bloom Burton: And you can determine before you give the patient either of the drugs whether they can tolerate it just based on comorbidities?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah, correct. So the pivotal study and other studies that have been done since looked at comorbidity index of these patients. Remember, these are quite ill patients. They have leukemia in most cases and they also have other conditions and so if their comorbidity index is high that means that their organs may not be able to tolerate a more toxic conditioning agent like busulfan. Therefore there’s a need for a less toxic but equally effective drug like triosulfan.

And so you know those patients will, it’s expected that those patients would do better on the reduced toxicity conditioning agent which is Triosulfan.

David Martin, Analyst, Bloom Burton: Got it. Thanks. That’s helpful.

Conference Operator: Your next question is from Scott Henry with ADP.

Scott Henry, Analyst, ADP: Thank you, and good morning. I guess, just for starters, dollars 2,500,000,000.0 in first quarter twenty twenty six is an impressive number. I just want to make sure I’m thinking about this right. That would seem to imply a $10,000,000 run rate already. And assuming sequential growth quarter over quarter and even better number than that for 2026.

Just in general, is that the right way to think about how this launch is progressing?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah. Thanks, Scott. Exactly. I mean, is how we’re beginning to think about it, that the run rate is faster than we had anticipated. And so yes, as we go forward, we would expect acceleration of the revenue due to better access by P and T committee approvals.

And so yes, if you just straight line where we are today, yeah, we do $10,000,000 in this year. But clearly, we’re in the very early stages of a launch and so you would expect that each quarter will be sequentially better. That’s why we’ve stated at the very beginning that we would think by our fiscal Q4, Triosulfan or Grafapax in The U. S. Will be accretive.

And we still very strongly believe that. Clearly, you can see the trend is very positive in that regard.

Scott Henry, Analyst, ADP: Okay, great. Well, congratulations on that. That’s an impressive start. When I look at some of the metrics you give, 34 of 180 transplant centers, how would you expect that to increase through the year? And at peak, would you expect to be in almost every transplant center?

Just trying to get an idea of, is that a metric you’ll give us on a regular basis and how we should expect to see that grow?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah, so the metrics we put out today, we expect to repeat until they’re no longer relevant. So we will continue to update on those metrics. The number of hospitals ordering obviously is really important and we’ve shown total number of total hospitals that do transplants. The really important ones obviously are the top 70 where we obviously have a better percentage of those hospitals who are already ordering. And so we’ll keep putting that data out because I think that really will give an indication of the uptake of the drug and how the future ought to unfold.

And I think in our view, it’s still very early going. So we feel really good about this fiscal year and the uptake for Grafapaxin versus expectations. It also gives us a good and high degree of confidence in the peak sales target and that it’s launching the way we had expected, if not better. And therefore, we feel confident that eventually it will become a really important standard of care in The US as it has in every other territory what’s been launched.

Scott Henry, Analyst, ADP: Okay, great. And just the MEDAC agreement, are those terms final? I know there was some you know, question about a couple of the terms.

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah. Correct. So we’ve always been guiding that, we thought, that the the label, earned them the $15,000,000, milestone payment, and they have now agreed with that. And so we are in the process of making those payments over the schedule that Brendan described.

Scott Henry, Analyst, ADP: Okay, great. Final question just on some of the other base franchises, Rosuvo and Xfinity in The U. S. And then RuPaul. My expectations for 2026 are slight declines in those franchises, maybe 5% to 10%.

Is that the right way to think about those kind of base franchises or anything that perhaps I should be factoring in? Thank you.

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah. No, I think that’s the right way to think about them. We considered those franchises as mature at this stage, so they’re getting some support, but we’re not attempting to grow them aggressively. We’re looking to defend them and maintain them. So, flat to slightly declining, I think, is the way to think about them.

Obviously, we pointed out the generic competition has arrived for RUPEL. So the team is working hard to defend our position and they’re doing a good job of that. And we are seeing the molecule continue to grow. So molecule keeps growing but our share obviously we’re going to start to split up with the generic.

Scott Henry, Analyst, ADP: Okay, great. Thank you for taking the questions.

Conference Operator: Your next question is a follow-up question from David Martin. David, your line is live.

David Martin, Analyst, Bloom Burton: Yes. Just a quick one. The zero point six million Q4 and the February in Q1, does that reflect use of the drug at the patient level or is any of that inventory build?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah, David. Both. So the 0.6, and all those numbers are ex factory, so those aren’t demand numbers that we gave you. They’re ex factory numbers. So the 0.6, yes, with the pipeline load, but it also there were two orders in that quarter.

So they pulled through the inventory quite quickly. And then the 2.5, again, it’s ex factory, but we are seeing that demand and ex factory are tracking very nicely together. So there’s no kind of a load in the channel.

David Martin, Analyst, Bloom Burton: Okay, great. And then I do have one other one related to, the last question you had. 5% to 10% declines including for Rupaul, with generics hitting the market, usually wouldn’t you expect a much greater decline in that situation? If not, what are the steps that are being taken to defend it?

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Yeah. Typically, in this generic, situation, we only have, private reimbursement. So that actually benefits us in this situation because there’s not as many forced substitution situations. So there is no strong push to substitute brand with generic. The other factor I think here is that the pricing isn’t that different between brand and generic.

The discount is not great. So there is not a strong financial drive to do that. And therefore, our commercial effort is to continue to support the product and grow the molecule and we still get a pretty strong share of the molecule and thus far that strategy has worked.

David Martin, Analyst, Bloom Burton: Great. Thanks.

Conference Operator: We have reached the end of the question and answer session. And I will now turn the call over to Ken for closing remarks.

Ken Dontermont, Chief Executive Officer, Medexis Pharmaceuticals: Just want to thank everyone for joining us on the call today. We look forward to building upon and advancing Grafitex over the coming months and quarters and continue to deliver strong performance as we look forward in 2026 and beyond. Thanks very much for joining us.

Conference Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.