Earnings call transcript: MediPharm Labs posts 14% revenue growth in Q2 2025

MediPharm Labs Corp reported a 14% increase in revenue during the second quarter of 2025, reaching $11.8 million. The company’s international medical cannabis segment grew by 50%, contributing $6.7 million to the total revenue. Despite these gains, the company recorded a negative adjusted EBITDA of $600,000. Following the earnings announcement, MediPharm’s stock price dropped by 16.67% to $0.07, reflecting investor concerns over the company’s profitability. According to InvestingPro data, the company maintains a solid gross profit margin of 71.03% and holds more cash than debt on its balance sheet.

Key Takeaways

• MediPharm Labs achieved a 14% year-over-year revenue increase in Q2 2025.
• International medical cannabis revenue surged by 50%.
• The company remains virtually debt-free with a cash balance of $10.4 million.
• Stock price fell by 16.67% post-earnings announcement.
• Adjusted EBITDA was negative $600,000 for the quarter.

Company Performance

MediPharm Labs showed solid revenue growth in Q2 2025, largely driven by its international medical cannabis sales, which now account for 57% of total revenue. The company has been expanding its product offerings and international reach, including launching metered dose inhalers in Canada and securing contracts to export to the UK and Australia. Despite these positive developments, the negative adjusted EBITDA indicates ongoing challenges in achieving profitability.

Financial Highlights

• Revenue: $11.8 million, a 14% increase year-over-year
• International medical cannabis revenue: $6.7 million, up 50% year-over-year
• Gross Profit: $3.3 million, representing 28% of revenue
• Cash Balance: $10.4 million, up from $8.4 million in Q1
• Adjusted EBITDA: Negative $600,000

Earnings vs. Forecast

MediPharm Labs did not meet the revenue forecast of $11.01 million, reporting slightly higher actual revenue of $11.8 million. However, the earnings per share (EPS) forecast of -0.0031 was not directly addressed in the earnings call summary.

Market Reaction

Following the earnings announcement, MediPharm’s stock price fell by 16.67% to $0.07. This decline comes despite the company’s revenue growth, possibly due to the negative EBITDA and concerns over sustained profitability. The stock is trading closer to its 52-week low of $0.06, indicating cautious investor sentiment.

Outlook & Guidance

MediPharm Labs is focusing on international expansion and innovation, with plans to continue investing in new product development and exploring merger and acquisition opportunities. The company aims to achieve positive EBITDA and cash flow in the future, supported by its strong international distribution networks and unique pharmaceutical-grade cannabis manufacturing capabilities.

Executive Commentary

CEO David Pittock expressed optimism about the company’s future, stating, "MediPharm has demonstrated success in Q2 with year-over-year revenue increases." He added, "We are excited about the future and confident in our path forward." CFO Greg Hunter noted the complexity of achieving profitability, stating, "There is no one silver bullet."

Risks and Challenges

• Sustained negative EBITDA could impact long-term profitability.
• Market volatility and regulatory changes in key markets like the US and Europe could affect growth.
• Dependence on international markets exposes the company to geopolitical risks.
• The competitive landscape in the cannabis industry remains intense.
• Economic pressures and inflation could affect consumer spending on cannabis products.

Q&A

During the earnings call, analysts focused on international growth opportunities and the impact of potential cannabis reclassification in key markets. Questions also addressed the company’s strategies for improving profitability and managing operational costs.

Full transcript - Medipharm Labs Corp (LABS) Q2 2025:

Conference Operator: Thank you for standing by, and welcome to the MediPharm Labs Conference Call to discuss the Second Quarter twenty twenty five Results. Our speakers on today’s call are David Pittock, President and Chief Executive Officer and Greg Hunter, Chief Financial Officer. As a reminder, all participants are in a listen only mode and the conference is being recorded. After management’s presentation, we will take written questions through the Q and A feature on the webcast. The information contained on this presentation should be considered together with the more detailed information, disclosure, financial data and statements available on the company’s website and on SEDAR plus profile.

As seen on Slide two and three, I would like to note that this earnings call contains forward looking information and is based on the company’s current expectations, estimates and beliefs as of today’s date and will also use terms that are non IFRS financial measures. Please review the company’s most recent disclosure material for the risks associated with the use of forward looking information and the use of non IFRS financial measures in this presentation. Please note that all dollar amounts mentioned in today’s call are in Canadian dollars unless otherwise noted. And now, I would like to turn the call over to Mr. David Piddoc.

Please go ahead.

David Pittock, President and Chief Executive Officer, MediPharm Labs: Thank you, operator. Good morning and thank you for joining us for MediPharm Labs second quarter earnings call. As you saw in the news release we issued earlier this morning, we delivered solid operational and financial results with 14% revenue growth over the prior year, while successfully defending MediPharm in a proxy contest and executing effectively on our strategic priorities. Let me begin by sincerely thanking our shareholders. Your support and engagement during the proxy contest was impactful and very much appreciated.

Over two hundred million votes were cast in our June AGM, approximately four times the typical votes cast. We saw shareholders approve all management recommendations and all dissident Board nominees were rejected by a margin of three to one. This level of participation reflects an encouraging alignment with our long term vision for MediPharm. Unfortunately, defending against this proxy contest was costly in terms of legal and advisory fees, and it temporarily diverted our focus from some exciting strategic initiatives. At the operational level, I’m proud to say that our leadership team was able to stay focused on executing our business strategy to reduce operating costs and increase revenue.

That is reflected in our continued progress on both our day to day operations and key strategic initiatives. The proxy contest did create a valuable opportunity to engage directly with shareholders. The executive team, Board members and I had the chance to speak with many of you. I was impressed by the depth of knowledge and conviction many of you have of MediPharm’s pharmaceutical and medical approach to cannabis. With your support, we are now in a stronger position to focus on the future and to accelerate our organic and M and A growth plans.

We spent over $2,200,000 during the second quarter to defend the company in the proxy battle. We believe those costs are largely behind us, although there may be further legal expenses associated with the frivolous personal lawsuits launched by the business. The company has a robust D and O, directors and officers liability insurance policy that will help mitigate any future legal expense exposure related to the Dissident Group. I do believe, and I know our Board agrees, that it is important to reflect on some of the learnings through this challenging process. In particular, I note that while the resolution relating to the Omnibus equity incentive plan was endorsed, it passed by a slim margin.

We take that feedback from our shareholders seriously. The compensation committee of the Board, comprised entirely of independent directors, has already met and is engaging with how to further improve the company’s approach to executive compensation. The Board is also reviewing the 15% cap for the Omnibus equity incentive plan and exploring potential ways to reduce the cap over time. I’ll add one final comment on governance. With the recent addition to the Board of John Medlin and Emily Jamison, five of our seven Board members are now fully independent.

Only Keith Strong and I remain non independent. This structure is an important safeguard for shareholders and reflects our commitment to strong transparent governance. Returning to our second quarter performance. We believe the results offer further evidence that our strategy is working. We continue to deliver revenue growth led by a 50% year over year increase in our international business.

Our team is managing expenses effectively, including through the divestment of non core assets with the sale of the dormant Hope facility closing in the quarter. As for our financial position, contrary to false claims you may have seen during the proxy contest, I want to assure you that MediPharm continues to operate from a position of strength. We ended Q2 with $10,400,000 in cash, which is up from the $8,400,000 at the end of Q1. This increase came despite the $2,200,000 in proxy related expenses and was supported by the gross proceeds from the sale of our Hope facility of $4,500,000 Our financial strength is ultimately driven by improved operating performance. I shared these tables last quarter, and they continue to demonstrate consistent progress in improving adjusted EBITDA.

As Greg will describe, the slight step backwards from positive adjusted EBITDA in Q1 was a result of some margin challenges based on product mix, notably in the international market. We have undertaken many initiatives in recent years to reduce standard costs and increase gross profit, while simultaneously reducing operating expenses and growing revenues. We continue to implement incremental cost saving programs in our manufacturing facilities and in our commercial operations. As a result, our operational cash burn is now minimal. We are virtually debt free.

We own our facilities outright. We’re current on our excise duties and continue to maintain strong relationships with our suppliers and partners. Our financial stability has made Metapharm an appealing and reliable partner internationally. We are continuing to invest in working capital to support growing global demand. That includes inventory and receivables to service our core export markets, enabling continued growth in Germany, Australia and The United Kingdom.

I will elaborate on some of our key growth opportunities and overall strategy momentarily. First, I will turn the call over to Greg to walk through our Q2 financial results in more detail. Greg?

Greg Hunter, Chief Financial Officer, MediPharm Labs: Thanks, Dave, and good morning, everyone. MediPharm management continues to focus on growing our revenue base through both organic and inorganic initiatives while reducing expenses and cash burn with the goal of becoming a profitable and cash flow positive organization in the near term. Our progress on these efforts is reflected in our Q2 results, highlighted by a 14% year over year increase in revenue. Revenue for the second quarter was $11,800,000 an increase of $1,500,000 or 14% compared to the same period last year, driven primarily by continued expansion of our international business. International medical cannabis revenue grew $2,200,000 or 50% year over year to $6,700,000 This growth was broad based across our German, Australian and United Kingdom customer base.

International medical cannabis accounted for approximately 57% of total revenue this quarter, up from 43% a year ago. Canadian medical cannabis revenue was $3,100,000 and declined $100,000 from Q1 twenty twenty five. Canadian adult use and wellness revenue was 1,600,000 representing a 6% increase year over year and a 19% sequential improvement. Gross profit for the quarter was $3,300,000 or 28% of revenue, down from prior year and sequentially. This decline was largely due to product mix.

Management remains focused on improving gross margins through product optimization and production efficiencies. General and administrative expenses adjusting for the $2,200,000 expense related to the proxy contest would have decreased $800,000 year over year and would be consistent with Q1 twenty twenty five. Marketing and selling expenses were $1,400,000 which is consistent with both the prior year and previous quarter. Total operating expenses, which includes G and A, marketing and selling and R and D was $4,300,000 when adjusting for several discrete items, including the 2,200,000 expense related to the proxy contest. Operating expenses adjusted for these discrete items declined versus prior year and sequentially, reflecting our success in improving the efficiency of the organization.

Management continues to focus on further expense reduction opportunities. Adjusted EBITDA for the quarter was negative 600,000 which declined versus prior year, driven by margin dilution from product mix. However, year to date adjusted EBITDA is negative $400,000 which improved $600,000 versus prior year. While we don’t provide guidance, we are very encouraged by our revenue trend and expect it to continue to move in a positive direction, although there may be variability from quarter to quarter as international markets mature. Moving to a few notable items on the balance sheet.

Our cash balance at the end of Q2 was $10,400,000 which increased versus the prior quarter cash balance of $8,400,000 as we divested the whole facility for gross proceeds of 4,500,000.0 Let me expand on our cash position given it was a topic of conversation during the recent proxy contest. During the most recent quarter, our operational cash flow would have been approximately negative 500,000 if it were not for the $2,200,000 expenditure on the proxy contest. This is generally in line with our adjusted EBITDA as one would expect. Based on our current cash burn, we have many quarters of cash remaining to fund operations and move to become EBITDA and cash flow positive. Trade and other receivables balance at Q2 is $8,000,000 and 85% of trade accounts receivable is aged sixty days or less.

Trade and other payables balance at Q2 is $8,200,000 And unlike many other cannabis companies, we are up to date on cannabis excise duties, sales taxes and trade payable obligations. The company has virtually no debt and has full ownership of two production facilities with an appraised value greater than $15,000,000 To summarize, although we still have work ahead of us to enhance our profitability profile and become cash flow positive, Q2 was a step in the right direction. Revenue in Q2 increased 14% versus prior year and year to date has increased 12% versus prior year. International medical cannabis revenue in Q2 increased 50% versus prior year and represented 57% of total revenues in the quarter. Although gross profit margin for the quarter declined versus historically high recent periods,

David Pittock, President and Chief Executive Officer, MediPharm Labs: it

Greg Hunter, Chief Financial Officer, MediPharm Labs: was still 28%. Adjusted EBITDA in Q2 declined sequentially. However, year to date, it is negative $400,000 which is an improvement versus prior year of negative $1,100,000 And finally, as previously discussed, we have a strong balance sheet relative to our peers with over $10,000,000 in cash and virtually no debt. As a result of our strong balance sheet, we are well positioned to continue to invest in organic and inorganic growth opportunities as the industry continues to mature. I’ll turn it back to Dave to expand on some of those opportunities.

David Pittock, President and Chief Executive Officer, MediPharm Labs: Thanks, Greg. Looking ahead, our strategy is consistent with what has proven to be successful for us. We are focused on disciplined execution, sustainable growth and international expansion. We continue to invest in innovation within our product portfolio and strengthen our reputation as a leader in pharmaceutical cannabis through manufacturing excellence and our contributions to clinical research. We are also actively evaluating opportunities for accretive M and A within a consolidating market.

I’ll touch on several of these points. For international sales, international sales continue to be a strong driver of growth for Medlar, as demonstrated by our recent results. Our success in global markets is built on years of preparation, investment and execution. MetaPharm has an established presence in Germany, The UK and Australia, supported by deep experience operating in these regulated markets. We hold a comprehensive suite of GMP licenses across The EU, Australia, Brazil and other jurisdictions, enabling us to operate the confidence and compliance in complex regulatory environment.

While many Canadian LPs are just beginning to explore international markets, MetaPharm has been active globally for years. Our international capabilities were further strengthened by the strategic acquisition of Vivo in 2023, which expanded our global footprint and operational reach. We’ve built enduring partnerships and distribution networks that support consistent and scalable growth. The international cannabis market presents significant challenges, including regulatory compliance, importexport, permit management, logistics, quality assurance and cash flow. MediPharm is uniquely well positioned to manage these complexities.

Our infrastructure is built for international success. We’ve developed regulatory pathways, supply chain systems and commercial quality processes that allow us to deliver reliably across borders. Q2 saw shipments of $6,000 into The UK, a substantial increase in our presence in this growing market. In Brazil, the CBD market continues to grow over 50% per year. New entrants have led to some significant market pressure on pricing.

We are working with our partners to adjust price positioning as launch preparations continue, and we remain hopeful for first shipments in 2025. In the 2025, several Canadian and international cannabis companies have approached us for support with supply chain and partner related challenges. These conversations have opened doors to new opportunities and reinforced our reputation as a trusted international partner. Our pathway to further international growth includes diversification of our product mix, including the launch of novel metered dose inhalers with contracts already in place to support rollout in key international markets. Regarding inhalers, earlier this year, the company commercialized and launched metered dose inhalers in the Canadian market, and we have begun to introduce new minor cannabinoid line extensions.

The launch of our metered dose inhalers marks an important milestone in our strategy to bring innovative, pharma quality cannabinoid products to global markets with contracts in place to export to The U. K. And Australia. As demand grows for smoke free and precisely dosed fast onset formats, MediPharm is uniquely positioned to meet that need with differentiated solutions that align with both wellness trends and clinical applications. This product supports our broader goal of expanding precision cannabinoid delivery across regulated international markets.

During my conversation with shareholders, many of you expressed an interest in our clinical trial activity. Metapharm’s pharmaceutical grade manufacturing capabilities, supported by our GMP and drug establishment licenses, allow the company to contribute meaningfully to the global medical research community by delivering consistent, high quality cannabinoid products for clinical evaluation. We continue to advance cannabinoid based pharmaceutical research, serving as a trusted manufacturing partner for leading universities, medical institutions and pharma partners across Canada and internationally. We are proud to be working with many leading research institutions, including University Health Network, UHN, University of Manitoba, University of Calgary, McMaster and BC Cancer Agency. These collaborations are focused on rigorously exploring the therapeutic potential of cannabinoids in treating a wide range of medical conditions.

This slide shows more than 10 clinical trials currently in progress at various stages, which utilize MediPharm products. These studies represent a significant step forward in understanding the therapeutic benefits of cannabinoids in managing conditions such as chronic pain, insomnia, major depressive disorders, epilepsy and cancer related symptoms. Looking at one of these trials, in Q2, we shipped additional materials as part of an extension of the Libbey clinical trial led by the University of Southern California’s Tech School of Medicine. The Libbey trial is a randomized double blind Phase II trial planned for approximately 150 patients across 20 U. S.

Sites, supported by a $16,000,000 NIH and NIA funding grant. More than seventy percent of Alzheimer’s and other dementia patients in hospice care are prescribed psychiatric medications for management of agitation, typically a combination of antipsychotics, sedatives and opiates. These medications often lead to undesirable side effects, all of which tend to make the situation even worse, lowering quality of life for patients and adding burden to their care providers. Recent research suggests that derivatives of cannabis can be beneficial in controlling agitation and distress without the side effects of the traditional medication. In this project, Teck School of Medicine aims to test the efficacy of an oral combination of THC and CBD for the treatment of agitation in participants with a diagnosis of dementia who are eligible for hospice and experiencing agitation.

I will also highlight that MediPharm Labs has recently been selected to supply pharmaceutical grade cannabinoids for an international animal health product. The product will be leveraged in a veterinary exploring its therapeutic potential in treating pain and inflammation in pets. The project comes at a time of growing regulatory interest in veterinary cannabinoid products. MediPharm actively participated in Health Canada’s public consultation in Q2, which explored a potential regulatory pathway for natural health products and veterinary drugs containing CBD for animal use in Canada. The company has also expanded its international pharmaceutical footprint through a contract development engagement with a European biopharmaceutical firm.

This partnership focuses on scaling a novel solid dose cannabinoid delivery system, with MediPharm securing future manufacturing rights in select markets upon successful development and regulatory approval. While the short term financial impact of participating in clinical trials may be minimal, we believe they help reinforce MediPharm’s position as a leader in the pharmaceutical cannabis space. Being a trusted partner to leading academic institutions and other researchers strengthens our ability as we build international relationships. In the longer term, there are opportunities for direct revenue contribution resulting from successful trials. The final topic I’ll cover is mergers and acquisitions.

I mentioned the Vivo acquisition we completed in 2023. Vivo has been MetaPharm’s largest and most significant M and A transaction to date, and it has proven to be a great success, as highlighted by its contributions to our international growth and profitability. Vivo has set a high benchmark that we intend to apply to any future transactions. In a sector with numerous consolidation opportunities, we follow a strict set of criteria when evaluating potential partners. Most important is ensuring that any transaction has significant potential strategic revenue and cost synergies and enhances shareholder value.

We continue to participate in strategic M and A discussions with selected parties and are hopeful to share more insights in the coming months. In conclusion, we remain steady in our focus on driving shareholder value through our international revenue growth and are committed to executing on our long term vision as a global leader of novel cannabinoid products for medical and wellness use. MediPharm has demonstrated success in Q2 with year over year revenue increases. We are excited about the future and confident in our path forward. The global cannabis sector continues to evolve.

It is still challenging in many respects, but we believe MediPharm is uniquely positioned. Our pharmaceutical approach, our strong governance foundation and our financial discipline distinguish us from others in the space. Once again, thank you to our shareholders for your trust and engagement. With a strengthened foundation, a supportive investor base and a focused team, MediPharm is well positioned to move forward with confidence. I’ll now ask the operator to open the call to your questions.

Conference Operator: Thank you. Your first question comes from the line of Aaron Grey of Alliance Global Partners. Your line is open.

John, Analyst Representative, Alliance Global Partners: Hi, good morning. This is John on for Aaron. Thank you for the questions. So in international, could you speak to some of the growth opportunities you’re seeing and where you feel best positioned to drive meaningful step change in growth? Just some more color on specific markets you think maybe present the best near term opportunities versus others being more long term.

David Pittock, President and Chief Executive Officer, MediPharm Labs: Yes. Great. Thanks for the question, John. So we have a number of international growth opportunities that we’ve outlined. I guess I’ll start with our most exciting one, which is the inhaler, which we showed here.

So we have launch plans in Australia and in Europe, and we have those set up and sales should come in this year for both of those. And that’s exciting because that’s a differentiated product with potentially higher margins. So that’s the inhaler, which we discussed briefly. What’s happening in a lot of the growth, there’s been lots of challenges for European customers. And I we’ve touched on this, and I think Greg touched on this in the call.

We’ve been approached by a number of customers who, let’s say, are dissatisfied for a variety of different reasons with some of their existing distribution partners that are helping them get Canadian product to market. And so we continue to have inbound new opportunities from new customers that are giving, basically new opportunities and new channels to get into various, especially European markets. In addition to that, our existing distributors that we use in our markets, which includes pharma distributors and other distributors depending vary by market. We’ve been seeing some good organic growth, let’s say, within our existing customer base. And then we have some exciting product launches in both Australia and, as we discussed, in the new market, which is Brazil.

All of these markets are growing and some in some interesting ways. We’ve mentioned the Brazilian market growth being over 50%, and we’re seeing robust growth in many European markets. And a number of European markets are actually newly opening. So France and some of the small European countries, we also have discussions or actual contracts in place with some new and some existing partners to to grow our our presence there. I don’t know, Greg, if you want to have anything to add to that.

Greg Hunter, Chief Financial Officer, MediPharm Labs: No. I think that covers it.

John, Analyst Representative, Alliance Global Partners: Great. That’s really helpful. And I know we’ve asked about this in the past, but given the news around potential, reclassification for cannabis, could you talk about what opportunities could come available for MetaPharm if Schedule three were to come about? And maybe how you’re uniquely positioned compared to others?

David Pittock, President and Chief Executive Officer, MediPharm Labs: Great. Thanks for that. And we actually had that question come in from another shareholder on the line, so I’ll kind of address their angle on it as well. We released a press release yesterday that tried to sort of describe that, but I’ll try and put it in my own words what the opportunities are. So there’s kind of a general opportunity as the perspectives in The US market evolve.

It represents a a general opportunity for the the stigma to decrease in the market. And what that does is it allows it the market to grow in a whole bunch of different ways. As everyone is aware, we cannot export from Canada or import from The US to and from The US market. And the current scheduling treats cannabis federally as a narcotic. And when they change and and you can’t do interstate interstate trade.

So lots of complexities, and some of those complexities, including banking and some other things, go down as it gets rescheduled. For us specifically, we are we believe we are the only company that’s had an FDA cannabis facility that’s had an FDA inspection, And we are one of very few that has actually shipped product into The U. S. And in our case, for clinical trials. There have been a number of both pharma companies and academic institutions that have desired or have plans in place to launch clinical research.

But the complexities involved with doing that clinical research in the current environment with the scheduled drug, which involves the DEA, makes it very difficult and challenging. And we’ve had some great partners that have allowed us to supply them and go through the complexities of selling into The U. S. Market. So we have sold clinical trial materials into The U.

S. Market. And also as API with our drug master file and our FDA inspection, we can also provide API product into The US. So what we believe will happen is a lot of these research opportunities, both in the academic sphere and in terms of product development with actual pharma companies, those are going to get reprioritized potentially. And they’ll be looking for suppliers that, in the short term, can provide product supply.

And there’s very few companies that have already done it in our sort of pre preset to do that. And then in the larger sphere, if if this as the stigma goes down and as research goes up and as both pharma and academic institutions get more interested, it’s gonna generate a snowball of of research and activity. Very few companies can respond to that in in in the short term, and we have already done so. So we see it as a significant opportunity actually for patients and for the progressing of research. So we just discussed in detail sort of one of our more than 10 research projects.

If you look at the power of The US research capability that has really had one hand tied behind its back that’s prevented the the power of US research to get into this, that should change if if an ad that could change if an ad’s scheduling changes. So that’s in addition to all the benefits from from, you know, what expenses can be written off and and some of the, I’ll say, commercial benefits of potentially being able to, you know, not have to deal with multistate operators and and and go through the borders and things like that. So I don’t know, Greg, if you have anything to add to that. Sure. No.

That that address the question, John?

John, Analyst Representative, Alliance Global Partners: Yes. Yes. Very well. And then finally, just on profitability. It’s been drifting around the breakeven mark for some time now.

How should we think about the best levers for you to achieve more meaningful profitability? Is it simply top line growth? Or are there other margin enhancing levers available?

David Pittock, President and Chief Executive Officer, MediPharm Labs: Yes. I’ll take a swing at that, then I’ll turn it over to Greg, who gets this question quite a bit from investors and from the Board and from our own conversations. It’s not a single bullet and a single lever. There’s and it’s a lot of the levers we’re already pulling and continuing to pull. So we have ongoing activities in terms of decreasing our costs.

We have ongoing sort of restructuring that we are doing to ensure that our footprint is correct. You will notice that we have sold one of our redundant and closed facilities, and any burn that was associated with that is now gone. And we continue to look to efficiencies on the cost side. Certainly, revenue growth contributes. We have capacity in our facilities.

Both of our facilities, GMP facilities have capacity. So incremental volume is certainly helpful. And then we’re very attuned to, I’ll call it, mixed pricing margin. So on the gross profit level, being very sensitive to what business we take on, being very thoughtful in terms of how we price and how we manage existing profitability and new profitability. And then I think we touched on new launches generally and differentiated launches like the inhaler come with higher margins, and so that’s super helpful to the mix.

But I’ll turn it over to Greg. He can give some deeper thoughts on sort of the multi tiered approach to managing this tightly.

Greg Hunter, Chief Financial Officer, MediPharm Labs: Yes. I think just to build on

Speaker: what Dave said, there is no one silver bullet. There’s a multitude of different items, that the team is actively and aggressively pursuing. I think the one is if you just look at the the gross profit slide that we we show, on the prepared deck there, you can see where we went from negative gross margins to, I’ll say, 30 ish percent. We are coming off we came off a historical high gross margin in q one. Q two was more in line with with the prior quarters.

And so a number of things that we’re working on to do it, obviously, top line growth. We have excess capacity in in both of our production facilities, so we can take on additional volume without additional cost or investment. So that is certainly one. The other one, as Dave mentioned, expansion into new markets and higher profitability products, whether that be in Brazil or inhalers. Certainly pricing efficiencies, we’re always actively looking at pricing opportunities.

And then just general cost reduction opportunities, again, we’ve shown over the number of years, we’ve taken cost down significantly, and we’re always making adjustments. So for example, in q two here, we we made some optimization of shift within our our facility, and that will bear fruit in the q three, q four time frame. And then finally, I’d say, you know, one of the biggest ones that we we’ve been very public about is m and a, which we’re actively pursuing. Mean, I if you look go back and look at the Vivo acquisition and how successful that was, on bringing two companies together and really running them for the price of one, driving significant, significant synergy. And so that continues to be a major pillar of our strategy, and we’re actively working on that as well.

And hopefully, we’ll have news to to share on that in in the near near term.

David Pittock, President and Chief Executive Officer, MediPharm Labs: Great. Thanks, Greg. Any other questions there, John?

John, Analyst Representative, Alliance Global Partners: No. Thanks for the questions and best of luck.

David Pittock, President and Chief Executive Officer, MediPharm Labs: Great. Appreciate it. I’ll just note that we had questions that came in, and it looks like they’ve been addressed either in the content of the presentation or in the questions from the analysts. So I think, operator, we’ve kind of got through the all the questions that came in from shareholders.

Conference Operator: Thank you. With no further questions, this concludes the Q and A session and the conference. You may now disconnect.

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