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Medicure Inc. reported a notable increase in revenue for the second quarter of 2025, with net revenue climbing to $6.7 million from $5.2 million in the same period last year. The company also reduced its net loss to $786,000, or $0.08 per share, compared to a $1.1 million loss, or $0.12 per share, a year earlier. Despite these improvements, the company’s cash balance declined to $4.8 million from $7.2 million at the end of 2024. According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt, and is currently trading below its Fair Value. The stock price remained stable post-earnings, closing at $1.05, unchanged from the previous close.
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Key Takeaways
- Medicure’s Q2 2025 revenue increased by 29% year-over-year.
- The net loss narrowed significantly compared to the previous year.
- ZYPITAMAG sales grew by 21%, while Marley Drug saw a 15% revenue increase.
- The company’s cash balance decreased, reflecting ongoing investments.
- Stock price remained steady post-earnings announcement.
Company Performance
Medicure’s performance in the second quarter of 2025 highlighted its ability to grow revenue despite challenges in the pharmaceutical sector. The company maintains a strong gross profit margin of 56.76% and an encouraging Financial Health Score of "GOOD" from InvestingPro. The company benefited from strong sales of ZYPITAMAG and Marley Drug, although AGGRASTAT revenue slightly declined due to increased generic competition. The acquisition of Gateway Pharmacy and West Olympia Pharmacy contributed positively to revenue growth.
Financial Highlights
- Revenue: $6.7 million, up from $5.2 million in Q2 2024.
- Net loss: $786,000, improved from $1.1 million in the previous year.
- Earnings per share: -$0.08, compared to -$0.12 last year.
- Cash balance: $4.8 million, down from $7.2 million at the end of 2024.
- Adjusted EBITDA: Negative $28,000, improved from negative $514,000.
Outlook & Guidance
Medicure is focused on growing its ZYPITAMAG and Marley Drug sales while maintaining AGGRASTAT revenue. The company is also advancing its MC1 drug, which is in a Phase 3 trial and has received Fast Track designation. Medicure anticipates completing the trial by the end of 2025, with potential for a priority review voucher.
Executive Commentary
Dr. Albert Friesen, CEO, emphasized the company’s revenue growth and efforts to diversify its income streams. "Medicure’s overall revenue continues to increase," he stated, highlighting the strategic focus on expanding the business. Dr. Niels Owens, President and COO, noted the higher gross margins achieved through Marley Drug sales.
Risks and Challenges
- Increased competition from generic drugs impacting AGGRASTAT sales.
- Declining cash reserves, potentially affecting future investments.
- Execution risks associated with ongoing pharmacy acquisitions.
- Regulatory hurdles in the development and approval of new drugs.
- Market volatility affecting pharmaceutical stocks broadly.
Q&A
The earnings call did not provide specific details on the questions and answers session, but management reiterated their commitment to growth and innovation in response to market challenges.
Full transcript - Medicure Inc (MPH) Q2 2025:
Holly, Conference Call Operator, Medicure: Welcome to Medicare’s earnings conference call for the quarter ended 12/30/2025. My name is Holly, and I will be your operator for today’s call. At this time, all participants are in 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 that this conference call is being recorded, and today’s date is 08/21/2025.
I would like to turn the conference call over to Doctor. Albert Friesen, Chief Executive Officer of Medicure Inc. Please go ahead, Doctor. Friesen.
Dr. Albert Friesen, Chief Executive Officer, Medicure: Thank you, Ollie, and good morning to all on the call. We appreciate your interest and participation in today’s call. Joining me today on the Q2 twenty five call are Doctor. Niels Owens, President and Chief Operating Officer and Horace Oden, Medicare’s Chief Financial Officer. The net revenue for Q2 twenty five was $6,700,000 an increase from the previous year where the net revenue was 5,200,000.0 Company recorded a net loss of approximately $786,000 or $08 per share, compared to a net loss in the previous year of $1,100,000 and $0.12 per share.
Horace Oden, Chief Financial Officer, Medicure: The
Dr. Albert Friesen, Chief Executive Officer, Medicure: non cash items contributing to the loss include amortization, stock options, etcetera, about the same as the net loss. And in addition, Medicare also invested $641,000 in research and development during the quarter underscoring our commitment to advancing innovative therapies such as the Phase three trial for Medicure’s drug MC1 for the treatment of PNPO deficiency and delivering long term value to patients and shareholders. We recently added a fifth focus, that being the development of a novel drug related to MC1 with a significant market potential to further build long term value for shareholders. So just to remind us, the five focuses are holding sales and profits of AGGRASTAT, growing ZYPITAMAG revenue and profits, growing Marley Drug, the pharmacy business and the online pharmacy, the development of MC1 for PNPO deficiency, and the new chemical entity related to Medicare’s historic drug development with large market potential. Now I’d like to turn the call over to CFO, Hara Soodin, to review and provide some color on the Q2 financials.
Horace Oden, Chief Financial Officer, Medicure: 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 06/30/2025, 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 also be obtained from sedarplus.ca. I will now provide some key highlights of our financial performance for the three month period ended 06/30/2025. Total revenue for the quarter was $6,700,000 compared to $5,200,000 for the quarter ended 06/30/2024. Net revenues earned from AGGRASTAT during the current period totaled $1,700,000 a slight decrease from the prior year where net revenue from AGGRASTAT was $1,800,000 The decrease in AGGRASTAT revenue during the current period is the result of lower volume of units sold as a result of increased competition from generic TYR5 and hydrochloride. Net revenue earned from ZEPITAMAG through the traditional insured channel during the three month period ended 06/30/2025, totaled $751,000 which is a slight increase from the $654,000 net revenue earned during the same period in the prior year.
The increase in ZYPITAMAG revenue during the three month period ended 06/30/2025, can be attributed to an increased utilization of the product through insurance formularies during the current quarter. It is important to note that ZEPETOMEK sales through MARVEY Drug are excluded from this number. For MARVEY Drug, net revenue during the current quarter totaled $3,100,000 an increase from the $2,700,000 earned from MARVEY Drug during the three month period ended 06/30/2024. The increase in Marvy Drug sales during the current period is due to an increased volume of products sold. Net revenue attributable to ZEPITAMAG through Marvy Drug was 908,000 during the current period, an increase from the three month period ended 06/30/2024, whereas ZYPITAMAG sales through Marvy Drug were 791,000.
On 03/11/2025, the company acquired Gateway Pharmacy. Revenue for Gateway Pharmacy for the quarter ended 06/30/2025 was $764,000 In addition, on 06/16/2025, the company acquired West Olympia Pharmacy. Revenue earned from West Olympia Pharmacy during the current quarter was $328,000 It is important to note that the revenue earned through West Olympia Pharmacy during the current period was from its acquisition date of 06/16/2025 to 06/30/2025. The company intends on offering ZYPITAMAG through both pharmacies in subsequent quarters in addition to other product offerings, which have increased revenue at Maruidrug. With regards to cost of goods sold, AGGRASTAT cost of goods sold for the quarter ended 06/30/2025 totaled $693,000 an increase from the prior year where cost of goods sold totaled $604,000 The increase in cost of goods sold is attributable to a slightly higher manufacturing cost, a less favorable FX rate, offset by a lower volume of products sold during the current period.
ZYPITAMAG cost of goods sold for the current quarter totaled $233,000 a decrease from the same period in the prior year, where cost of goods sold for ZYPITAMAG for the quarter ended totaled $353,000 Included within cost of goods sold for ZYPITAMAG in the current period is $76,000 relating to products sold to customers and $157,000 of amortization of the ZYPITAMAG intangible asset. Marley drug cost of goods sold totaled $1,500,000 during the period ended 06/30/2025, an increase from the period ended 06/30/2024, where cost of goods sold totaled $1,300,000 The increase in cost of goods sold at Maruti Drug during the current period is a result of a higher volume and 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 06/30/2025 was $531,000 and West Olympia Pharmacy’s cost of goods sold during the three month period ended 06/30/2025 was 241,000 As both pharmacies were acquired during the current year, there was no cost of goods sold recorded for either Gateway Pharmacy or West Olympia Pharmacy during the three month period ended 06/30/2024. Selling expenses totaled $2,100,000 for the quarter ended 06/30/2025, an increase from the three month period ended 06/30/2024, where selling expenses were 1,800,000.0 Selling expenses increased in the current period as a result of the acquisitions of Gateway Pharmacy and West Olympia Pharmacy in addition to higher selling expenses through Marguerite Drug, which is also consistent with the higher revenue recorded through Marguerite Drug in the current period.
General and administrative expenses totaled $1,300,000 for the quarter ended 06/30/2025, in comparison to $1,400,000 during the quarter ended 06/30/2024. The decrease in general and administrative expenses in the current period is a result of lower professional 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 06/30/2025 totaled $741,000 compared to $868,000 during the same quarter in the prior year. The decrease during the current period is primarily due to the timing of research and development expenditures relating to each development project the company has currently undertaken, which in the current period was primarily the development of MC1. The company recorded finance income net of $20,000 during the period ended 06/30/2025, in comparison to finance income net of $36,000 during the three month period ended 06/30/2024.
The finance income recorded during the current period primarily relates to interest income earned, offset by bank charges, interest on the company’s lease obligations and holdback payable, and non cash accretion expense on the company’s acquisition payable liability. The company recorded a foreign exchange loss of $49,000 during the quarter ended 06/30/2025, in comparison to a foreign exchange loss of $25,000 during the quarter ended 06/30/2024. The change in foreign exchange loss relates to changes in The U. S. Dollar exchange rate during the respective years.
Adjusted EBITDA for the quarter ended 06/30/2025 was negative $28,000 compared to an adjusted EBITDA of negative $514,000 during the quarter ended 06/30/2024. The increase in adjusted EBITDA during the current period is due to a decrease in operating loss, which primarily related to higher revenue of ZYPITAMAG through MARLU drug in addition to overall higher revenue of MARLU drug, in addition to lower general and administrative expenses, in addition to lower research and development expenses offset by a lower revenue of AGGRASTAT and higher cost of goods sold during the current period. As at 06/30/2025, the company had cash totaling approximately $4,800,000 a decrease from 12/31/2024, where the company had 7,200,000 of cash held. The decrease in cash balance the decrease of cash balance of the company is primarily attributable to the acquisitions of both Gateway Pharmacy and West Olympia Pharmacy during the current year. The company does not have any debt on its books.
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.
Dr. Niels Owens, President and Chief Operating Officer, Medicure: Thank you, Haris, and good morning, everyone. I’d like to start with some updates on our ZYPITABAG business. Total sales of ZYPITAMAG in Q2 twenty twenty five were $1,700,000 which was a 21% increase from $1,400,000 in Q2 twenty twenty four. Sales of ZYPITAMAG sold to Marley Drug grew by 15% from $790,000
Holly, Conference Call Operator, Medicure: in Q2 twenty twenty four to $908,000 in Q2 twenty twenty five. To grow sales further,
Dr. Niels Owens, President and Chief Operating Officer, Medicure: we plan to continue to use a field based sales team as well as prescriber and consumer marketing. Selling ZYPITAMAG ZYPITAMAG through sold Marley Marley Drug has proven to be an effective approach due to the pharmacy’s customer service, the absence of the typical hurdles put in place by insurance companies and transparency and pricing. In addition, due to removing 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 adherence rate for patients taking ZYPITAMAG is more than 40% higher through Marley Drug compared to other retail pharmacies. That’s because of our service and engagement strategies, and this helps for reducing our attrition rate and increasing revenue.
Net revenue through insured channels and the standard retail pharmacy model increased from $654,000 in Q2 twenty twenty four to $751,000 in Q2 twenty twenty five, due to an increase 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 Marley Drug business, net revenue grew by 15% from $2,700,000 in Q2 twenty twenty four to $3,100,000 in Q2 twenty twenty five. This is due to an increase in ZYPITAMAK sold through the pharmacy business, as well as generic medication sales and notably the sales of Brenzavvy tablets, which is an accessible alternative SGLT2 inhibitor to Jardiance and Farxiga. Medicare is working on leveraging Marley Drug’s reputation for customer service, unique branded solutions and national distribution to continue to drive growth.
Challenges we faced include competition and an increase in cost of goods, which impacts our margins. We plan to seek additional partnerships and branded products to offer through our
Dr. Albert Friesen, Chief Executive Officer, Medicure: e commerce
Dr. Niels Owens, President and Chief Operating Officer, Medicure: website. Recently, Medicare announced the acquisition of Gateway Medical Pharmacy and West Olympia Pharmacy. These additional pharmacy subsidiaries immediately grow our customer and prescriber base for both ZYPITAMAG and other branded products. Combined, they contributed 1,100,000 in revenue in Q2. Additional benefits of these acquisitions include faster shipping times and growing our brands nationally.
In terms of our AGGRASTAT business, net revenue fell from $1,800,000 in Q2 twenty twenty four to $1,700,000 in Q2 twenty twenty five due to generic tire 5N competition. Volume of product units sold and revenue in Q2 was consistent with Q1 twenty twenty five. 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 PMPO deficiency, which is a rare pediatric disease leading to seizures and is ultimately fatal if untreated. If successful use of Medicare’s legacy product MC1 could lead to a priority review voucher, which can be redeemed or sold and provide significant value. The FDA granted approval to start enrollment and so enrollment is ongoing with patients receiving treatment with MC1. Medicare also recently received Fast Track designation for MC1 for its intended indication, which will facilitate the review of Medicare’s FDA new drug application.
The Phase three study had its first patient to complete the study enrollment period, and we are targeting the 2025 to complete enrollment. Medicure recently announced that it had 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 the 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. Medicure has yet to announce the therapeutic clinical therapeutic target, however, started preclinical testing and API development of the lead compound. Overall net revenue in Q2 twenty twenty five was $6,700,000 compared to $5,200,000 in Q2 twenty twenty four due to an increase in ZYPITAMAG and MARLEY drug revenue and the acquisitions of Gateway Medical and West Olympia pharmacies, in part because of higher MARLEY drug cost of goods and selling expenses as well as R and D expenses of $741,000 in Q2 twenty twenty five, we are reporting an adjusted EBITDA of negative $28,000 and a net loss of $786,000 Medicare remains debt free and to reiterate, the company’s short term goals are focused on growing ZYPITAMAG, growing MARLEY drug and our pharmacy business, maintaining AGGRASTAT sales and developing new products.
Short term seeking the approval of MC1 to receive a priority review voucher and long term, the development of 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.
Dr. Albert Friesen, Chief Executive Officer, Medicure: Thank you, Neil. Medicure’s overall revenue continues to increase. This in part through a large part through the acquisition of Marley Drug and the pharmacies we just have announced the acquisition of in the last few months. We’re still focused on further 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, 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 the outstanding team of employees we’ve been blessed with. Thank you, our shareholders, for continued support and your interest. Holly, I’ll turn it back to you for the Q and A.
Holly, Conference Call Operator, Medicure: Thank you. We will now begin the question and answer session. As a reminder, if you would like to ask a question, please press 1. We have reached the end of the question and answer session, and I will now turn the call over to Doctor. Albert Friesen for closing remarks.
Dr. Albert Friesen, Chief Executive Officer, Medicure: Thank you, Holly, and thank you for all that are on the call. We thank you for the support and interest, and wish you a great day.
Holly, Conference Call Operator, Medicure: Thank you, ladies and gentlemen. This concludes today’s conference. Thank you for participating. You may now disconnect.
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