DexCom earnings beat by $0.03, revenue topped estimates
Medicure Inc. (MPH) reported a decline in revenue for the first quarter of 2025, with net revenue at $5.5 million, down from $5.7 million in the same period last year. The company posted a net loss of $694,000, equating to a loss of $0.07 per share. According to InvestingPro analysis, the stock is currently trading below its Fair Value, with a price-to-book ratio of just 0.47, suggesting potential undervaluation. The company’s stock price remained unchanged at $0.94, reflecting a neutral market reaction.
Key Takeaways
- Medicure’s net revenue decreased by 3.5% compared to Q1 2024.
- ZYPITAMAG sales through Marley Drug increased by 17%.
- AGGRASTAT revenue declined due to increased generic competition.
- The company acquired Gateway Pharmacy and is engaged in a Phase 3 clinical trial for MC1.
Company Performance
Medicure’s performance in Q1 2025 was mixed. While the company saw growth in ZYPITAMAG sales, overall revenue decreased. This decline is attributed to competitive pressures impacting AGGRASTAT sales. The acquisition of Gateway Pharmacy and ongoing clinical trials for new treatments signal strategic efforts to bolster future growth.
Financial Highlights
- Revenue: $5.5 million, down from $5.7 million in Q1 2024.
- Net Loss: $694,000, compared to a smaller loss in the previous year.
- Adjusted EBITDA: $28,000, a significant drop from $359,000 in Q1 2024.
- Cash Position: $7.2 million, consistent with the end of 2024.
Outlook & Guidance
Medicure aims to grow ZYPITAMAG sales, expand the Marley Drug pharmacy business, and maintain AGGRASTAT sales. The company is also focusing on the development of MC1 for PNPO deficiency, with long-term goals centered on new intellectual property development. InvestingPro analysis shows an overall Financial Health Score of "GREAT" (3.12 out of 5), suggesting strong fundamentals to support these growth initiatives. Discover detailed growth potential analysis and expert insights in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Executive Commentary
"We are focused on growing the business and diversifying our revenue and asset base," said CEO Albert Friesen, highlighting the company’s strategic priorities. Neil Owens, President and COO, noted, "Patients still have challenges in accessing ZYPITAMAG through their insurance coverage," indicating potential hurdles in sales growth.
Risks and Challenges
- The decline in AGGRASTAT revenue due to generic competition poses a significant challenge.
- Insurance coverage issues for ZYPITAMAG may limit market penetration.
- The pharmaceutical market’s competitive landscape could impact Medicure’s growth strategies.
- The success of the MC1 clinical trial is crucial for future revenue streams.
Q&A
No questions were raised during the Q&A session of the earnings call, leaving some analyst queries potentially unaddressed.
Full transcript - Medicure Inc (MPH) Q1 2025:
Jenny, Conference Operator: Welcome to Medicure’s earnings conference call for the quarter ended 03/31/2025. My name is Jenny, and I will be your operator for today’s call. At this time, all participants are in a listen only mode. Before we proceed, I would like to remind everyone that this presentation contains forward looking statements relating to future results, events and expectations, which are made pursuant to the safe harbor provisions of The U. S.
Securities Litigation Reform Act of 1995. Forward looking statements involve known and unknown risks and uncertainties, which could cause the company’s actual results to differ materially from those in the forward looking statements. Such risks and uncertainties include, among others, those described in the company’s most recent annual information form and Form 20 F. Later, we will conduct a question and answer session. Please note this conference is being recorded and today’s date is 05/22/2025.
I would now like to turn the conference over to doctor Albert Friesen, chief executive officer of Medicure Incorporated. Please go ahead, Friesen.
Albert Friesen, Chief Executive Officer, Medicure Incorporated: Thank you, Jenny, and good morning to all on the call. We appreciate your interest and participation in today’s call. Joining today on the Q1 twenty twenty five financial statements call is Doctor. Neil Owens, President and Chief Operating Officer and Horace Uden, Medicare’s Chief Financial Officer. The net revenue for Q1 twenty twenty five was $5,500,000 a slight decrease from the previous year’s net revenue, which was 5,700,000.0 The company recorded a net loss for Q1 of approximately $694,000 or $07 per share compared to a net income of $51,000 the first quarter of twenty twenty four.
The net loss in the current period was due in large part due to significant R and D expenses of $570,000 mainly for the MC1 PMPO clinical trial and a bit of a decrease in AGGRASTAT revenue, a decrease in ZYPITAMAT revenue from the insured channel, amortization of the company’s intangible assets. Offsetting this was decreases in selling and general and administrative costs. In addition, higher revenue through Marley Drug, including higher sales with ZYPINOMAG through Marley Drug. The company has five focuses, AGGRASTAT sales and profits holding them, growing ZYPITAMAG revenue and profit, growing the MARLEY drug online pharmacy, including new pharmacies we’ve recently added, the development of MC1 for PMPO deficiency and a new chemical entity related to Medicure’s historic drug development with a very large market potential. I’d now like to turn the call over to our Chief Financial Officer, Hara Soodin, review and provide some color on the Q1 twenty twenty five statements.
Horace Uden, Chief Financial Officer, Medicure Incorporated: Thank you, Doctor. Friesen. A couple of quick items to note before I start. All dollar figures are in Canadian dollars unless otherwise noted by each presenter. And as a reminder, you can obtain a complete copy of our financial statements for the quarter ended 03/31/2025, along with previous financial statements on the Investors page of our website.
In addition, a copy of all financial statements and management’s discussion and analysis can be obtained from sedarplus. I will now provide some key highlights on our performance for the three month period ended 03/31/2025. Total revenues for the quarter ended 03/31/2025 were $5,500,000 compared to $5,700,000 for the quarter ended 03/31/2024. Net revenues earned from AGGRASTAT during the current period totaled $1,700,000 a decrease from the prior year, where net revenue from AGGRASTAT was 2,300,000.0 The decrease in AGGRASTAT revenue during the current period is the result of a lower volume of units sold as a result of increased competition from generic TARA5 and hydrochloride. Net revenues earned from ZYPITAMAG through the traditional insured channel during the current period totaled $519,000 which is a decrease from the $777,000 of net revenue earned during the same period in the prior year.
The decrease in ZYPITAMAG revenue during the three month period ended 03/31/2025 can be attributed to a decrease in utilization of the product through insurance formularies, specifically Medicare Part D. It is important to note that ZYPITAMAK sales through MARUELY drug are excluded from this number. For MARUELY drug, net revenue during the current quarter totaled $3,100,000 an increase from the $2,700,000 earned from MARUELY drug during the three month period ended 03/31/2024. The increase in MARLU drug sales during the current period is due to increased volume of products sold including ZYPITAMAG. Net revenue attributable to ZYPITAMAG through MARLU drug was $918,000 during the current period, an increase from the three month period ended 03/31/2024, whereas ZYPITAMAK sales were $567,000 through MARGU drug.
On 03/11/2025, the company acquired Gateway Pharmacy. Revenue for Gateway Pharmacy between the period of 03/11/2025 to 03/31/2025 was $175,000 The company intends on offering ZYPITAMAK to the pharmacy in subsequent quarters in addition to other product offerings, which have increased revenue at MARLU drug. Moving to cost of goods sold for the quarter ended 03/31/2025 totaled $699,000 an increase from Q1 twenty twenty four, where cost of goods sold totaled 403,000 The increase in cost of goods sold is attributable to insurance proceeds received by the company during the three month period ended February for inventory, which had been previously expensed during 2023. Normalizing for this, in addition to foreign exchange rate differences between the two periods, cost of goods sold for AGGRASTAT did decrease, which is consistent with the lower revenue for AGGRASTAT recorded during the current period. ZYPITAMAG cost of goods sold for the current quarter totaled $244,000 a decrease from Q1 twenty twenty four, where cost of goods sold for ZYPITAMAG through the insured channel for the quarter ended totaled 315,000 For the current period included within cost of goods sold for ZYPITAMAG is $82,000 relating to products sold to customers and $162,000 of amortization of the ZYPITAMAG intangible asset.
The decrease in cost of goods sold noted during the current quarter is consistent with the decrease in revenue noted during the current period. Monthly drug cost of goods sold totaled $1,600,000 during the period ended 03/31/2025, an increase from the period ended 03/31/2024, where cost of goods sold totaled $1,100,000 The increase in cost of goods sold during the current period is a result of a higher volume and the nature of products sold through both the mail order and e commerce platform. Gateway Pharmacy’s cost of goods sold during the three month period ended 03/31/2025 was $110,000 The cost of goods sold reported for Gateway Pharmacy is only from its acquisition date of 03/11/2025 to 03/31/2025. Selling expenses totaled $1,800,000 for the quarter ended 03/31/2025, a decrease from Q1 twenty twenty four, where selling expenses were $2,000,000 Selling expenses decreased in the current period as a result of lower consulting and marketing expenses incurred by the company. General and administrative expenses totaled 1,100,000 for the quarter ended 03/31/2025, in comparison to $1,200,000 during Q1 twenty twenty four.
The decrease in general and administrative expenses in the current period is a result of lower legal fees in the current period in addition to lower share based compensation expense, which is based on the vesting schedule of previously granted stock options to key employees and directors of the company. Research and development expenses for the quarter ended 03/31/2025 totaled $570,000 compared to $680,000 during the same quarter in the prior year. The decrease in the current period is primarily due to the timing of research and development expenditures relating to each development project the company is currently undertaking, which in the current period was primarily the development of MC1. The company recorded finance income net of $34,000 during the current period ended of $34,000 in comparison to finance income net of $51,000 during the three month period ended 03/31/2024. The finance income recorded during the current period primarily related to interest income earned, offset by bank charges, interest on the company’s lease obligations and non cash accretion expense on the company’s acquisition payable liability, which is in connection with the acquisition of Gateway Pharmacy.
The company recorded a foreign exchange loss of $35,000 during the quarter ended 03/31/2025 in comparison to a foreign exchange loss of $7,000 during the quarter ended 03/31/2024.
Neil Owens, President and Chief Operating Officer, Medicure Incorporated: The
Horace Uden, Chief Financial Officer, Medicure Incorporated: change in foreign exchange loss related to changes in the U. S. Dollar exchange rate during the respective years. Adjusted EBITDA for the quarter ended 03/31/2025 was $28,000 compared to an adjusted EBITDA of $359,000 during the quarter ended 03/31/2024. The decrease in adjusted EBITDA during the current period is due to a decrease in operating income, which primarily relates to decreased revenues from the sale of AGGRASTAT and ZYPITAMAG through the Insure Channel, offset by higher revenue through MARLEY drug, including higher revenue of ZYPITAMAG through MARLEY drug.
In addition, the company also had a lower selling expenses and general administrative and research and development expenses. As at 03/31/2025, the company had cash totaling approximately 7,200,000.0 consistent with the $7,200,000 of cash held as of 12/31/2024. The company does not have any debt on its book. I want to remind you that there will be an opportunity at the end of today’s call for you to ask questions regarding the financial results of the company as a whole. And with that, I would like to turn the call over to our President and Chief Operating Officer, Doctor.
Neil Owens, for some additional commentary regarding our operations.
Neil Owens, President and Chief Operating Officer, Medicure Incorporated: Thank you, Horace, and good morning, everyone. I’d like to start with some updates on our ZYPITAMAG business. Sales of ZYPITAMAG sold through Marley Drug grew by 17% from $770,000 in Q1 twenty twenty four to $900,000 in Q1 twenty twenty five. To grow sales further, we plan to continue to use a field based sales team, as well as prescriber and consumer marketing. Patients still have challenges in accessing ZYPITAMAG through their insurance coverage, which is a reason why selling ZYPITAMAG through MARLEY drug is such an effective approach.
Similarly due to wholesaler and coverage gap fees, low PBM reimbursement and product returns, selling through Marley Drug provides a much higher gross margin. We’ve also found that the adherence rate for patients taking ZYPITAMAG is more than 40% higher through Marley Drug compared to other retail pharmacies because of our customer service and engagement strategies. This helps for reducing our attrition rate and increasing revenue. Net revenue through insured channels and the standard retail pharmacy model fell from $777,000 in Q1 twenty twenty four to 519,000 in Q1 twenty twenty five. This is due to a decrease in purchasing from wholesalers and changes in the mix of our insured customers.
Overall, ZYPITAMAG represents a priority for growth through efforts of our sales and marketing team. Further on our Partly Drug business, net revenue grew by 15% from $2,700,000 in Q1 twenty twenty four to $3,100,000 in Q1 twenty twenty five. This is due to an increase in Ziplimab sold through the pharmacy business, as well as generic medication sales, and notably the sale of Renzavi tablets, which is an accessible alternative SGLT2 inhibitor to Jardiance and Farxiga. Medicare is working on leveraging Morley Drug’s reputation for customer service, unique branded solutions and national distribution to continue to drive growth. Challenges we face include competition and an increase in cost of goods, which impacts our margins.
We plan to further invest in our e commerce website to make it a best in class experience for customers. Recently, Medicare acquired by announcing acquisition of Gateway Medical Pharmacy and signing of a definitive agreement with West Olympia Pharmacy. These additional pharmacy subsidiaries immediately grow our customer and prescriber base for both ZYPITAMAG and other branded products and will be adopted under the Marley Drug brand. Additional benefits of these acquisitions include faster shipping times and redundancy, growing our brand nationally, increasing our revenue and our cash flow positive. In terms of our AGGRASTAT business, net revenue fell from $2,300,000 in Q1 twenty twenty four to $1,700,000 in Q1 twenty twenty five due to generic TYR5N competition.
Medicare remains the only manufacturer of the three point seven five milligram bolus vial format, which is typically administered before the infusion unit. We continue to provide support to our U. S. Hospital accounts and plan to remain price competitive in targeted ways. Medicure’s R and D focus is primarily on its phase three study to seek approval of MC1 as the first FDA approved therapy for patients with PNPO deficiency, which is a rare pediatric disease leading to seizures and is ultimately fatal if untreated.
A successful use of Medicare’s legacy product MC1 could lead to a priority review voucher, which can be redeemed or sold and provides significant value. The FDA granted approval to start enrollment until enrollment is ongoing with patients receiving treatment with MC1. Medicare also recently announced Fast Track Designation for MC1 for its intended indication, which will facilitate the review of Medicare’s FDA new drug application. Recently, phase three studies first patient has completed the study enrollment period and has moved into a continuation phase post enrollment. Medicare recently announced that it has signed an asset purchase agreement for the acquisition of the patent and intellectual property related to the discovery of new chemical entities that can be developed for therapeutic use.
We believe that these new chemical entities hold promise to provide improvements over existing lead compounds in alignment with treatment of diseases being targeted by Medicare and could provide significant long term value upon completion of all required preclinical and clinical studies and regulatory approval. Medicare has yet to announce the clinical therapeutic target, however, has started preclinical testing and API development of lead compound. Overall net revenue in Q1 twenty twenty five was 5,500,000.0 compared to 5,700,000.0 in Q1 twenty twenty four, despite an increase in Marley Drug revenue due to lower revenue from AGGRASTAT and ZYPITAMAG sold through insurance. In part because of higher Marley Drug cost of goods and R and D expenses of $570,000 in Q1 twenty twenty five, we are reporting an adjusted EBITDA of $28,000 and a net loss of $694,000 Medicare remains debt free. And to reiterate, the company’s short term goals are focused on growing ZYPITAMAG, growing MARILI drug and our pharmacy business, maintaining AGGRASTAT sales and development of new products.
Short term seeking the approval of MC1 to receive a priority review voucher, and long term the development of our new intellectual property for diseases with large market potential. With that, I’d like to turn the call back to Doctor. Friesen for final comments.
Albert Friesen, Chief Executive Officer, Medicure Incorporated: Thank you, Neil. The overall revenue was consistent with last year. There were significant developments through the acquisition of additional pharmacies to our main one, Marley Drug, which we think strongly complements Medicure’s business, including the sales and marketing of ZYPITAMAD. We are focused on growing the business and diversifying our revenue and asset base near term through acquisition and long term through R and D, carefully investing to grow our future profitability. My goal and that of our Board, management and staff is to continue to build this business with a stable long term outlook to generate value for our shareholders.
And as always, I want to express my sincere appreciation to our outstanding team of employees that we are blessed with. Thank you, our shareholders, for continued support and interest. Now I’ll turn it over to our moderator for Q and A.
Jenny, Conference Operator: Thank you very much. We will now begin the question and answer Hey. I’m not seeing anybody in the queue for questions. Just wait a little longer just in case.
Okay. Well, I can hand it back over to the management team for any
Albert Friesen, Chief Executive Officer, Medicure Incorporated: further you, Jenny. And thank you for all that were on the call. We look forward to updating you on our next Q call. Thank you.
Jenny, Conference Operator: Thank you very much, ladies and gentlemen. This concludes today’s conference. Thank you for participating. You may now disconnect.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.