(all amounts are in Canadian dollars)
- Quarter ended January 31, 2026, net loss of $2.2 million dollars, ($0.81) per share
- Six months ended January 31, 2026, net loss of $3.8 million dollars, ($1.37) per share
- Cash as of January 31, 2026, $1.3 million; Company remains debt-free
- Reverse split of our common shares at ratio of sixty to one effected on January 22, 2026
- Thykamine™ radiodermatitis prevention pivotal clinical study as a first priority for the Company
- Company continues preclinical studies for Thykamine™ in MASH and Fibrosis, furthering the understanding of Thykamine™'s mechanism of action
- Thykamine™: A New Player in the Field of Anti-Inflammatory Drugs published in the peer reviewed journal, Biomedicines.
QUÉBEC, March 25, 2026 /PRNewswire/ - Devonian Health Group Inc. ("Devonian" or the "Company") (TSXV: GSD) (OTCQB: DVHGF), a clinical-stage biopharmaceutical company focused on developing innovative therapies targeting fibro-inflammatory diseases, today highlighted its financial and operating results for the three and six months ended January 31, 2026.
''We are pleased with the continued momentum to execute on our priorities and readiness to advance our pipeline'', said Dr. André P. Boulet, PhD, Chief Executive Officer and president of Devonian.
Corporate Highlights
Board Appointment and CFO
On November 26, 2025, the Company announced the appointment of Mr. Pierre Labbé, CPA as Board Director. Mr. Labbé was appointed Chair of the Audit Committee effective
February 2, 2026.
On February 2, 2026, the Company announced the appointment of Mr. Dennis Turpin, CPA as Chief Financial Officer. Mr. Turpin remains on the Board of directors. He succeeded Ms. Viktoria Krasteva.
Strategic Update
Following the expiry of the Altius Healthcare LP ("Altius") distribution agreements, the Company is transitioning toward a focused biopharmaceutical development strategy centered on Thykamine™. The Company is actively evaluating strategic alternatives for the Altius business while pursuing financing options to support its pipeline.
Steatohepatitis Associated with Metabolic Dysfunction
Metabolic dysfunction-associated steatotic liver disease progresses to metabolic dysfunction-associated steatohepatitis ("MASH"), which features inflammation, hepatocellular bloating, and subsequent worsening of fibrosis. If left untreated, MASH can progress to cirrhosis of the liver and hepatocellular carcinoma, liver failure, and death. Devonian recently completed a study investigating the effects of Thykamine™ on liver disease progression in the widely used STAM™ mouse model of MASH/fibrosis at SMC Laboratories in Japan1. In this model, diabetic mice were fed into a high-fat diet and rapidly developed fatty liver disease caused by inflammation and fat accumulation in the organ. Resmetirom, a drug approved by the U.S. FDA for the management of MASH, was used as a positive control at an oral dose of 3.0 mg/kg once daily for 3 weeks. Thykamine™ administered orally, at doses of 0.5 mg/kg, 5.0 mg/kg and 50.0 mg/kg, once daily for 3 weeks, suggest potential hepatoprotective effect preventing the progression of liver disease compared to the control (vehicle) group. The MASH study demonstrates that Thykamine™ has anti-inflammatory and anti-fibrotic effects with the potential to target the underlying pathology of the disease and thus halt the progression of the disease. Further studies are ongoing to highlight the potential of Thykamine™ to be used in the treatment of MASH.
Reference:
1 In Vivo Efficacy Study of ThykamineTM in STAMTM Model of Metabolic dysfunction-associated steatohepatitis. SMC Laboratories Inc. Jan 2025.
Financial Highlights
Net Loss and Comprehensive Loss
For the three months ended January 31, 2026, the net loss and comprehensive loss was
$2.2 million, $0.81 per share, compared to a net loss of $0.2 million, $0.09 per share, for the same period in 2025. This increase of $2 million in net loss and comprehensive loss is primarily due to lower distribution revenues resulting from the previously announced Dexlansoprazole expiry of its distribution agreement in April 2025. The lower distribution revenues reduced the comparative gross margin by $2.6 million partly offset by lower operating expenses of $0.2 million and lower income tax expenses of $0.4 million.
For the six-month periods ended January 31, 2026, the net loss and comprehensive loss was $3.8 million, $1.37 per share, compared to a net loss and comprehensive loss of $0.8 million, $0.36 per share, for the same period in 2025. This increase of $3 million in net loss and comprehensive loss is primarily due to lower distribution revenues resulting from the previously announced Dexlansoprazole expiry of its distribution agreement in April 2025. The lower distribution revenues reduced the comparative gross margin by $4.0 million, partially offset by lower operating expenses of $0.7 million and lower income tax expenses of $0.4 million net of lower interest income of $0.1 million.
In August 2025, Altius, which is ultimately owned by Devonian, was informed that the distribution agreement for Pantoprazole Magnesium would not be renewed after its expiry date of April 23, 2026.
Altius continues to sell Cleo-35® while Pantoprazole magnesium will end generating revenue post April 23, 2026. Distribution revenues will be driven by Cleo-35®, a product to treat hormonal acne in women.
Liquidity and Cash Flows
As of January 31, 2026, the Company had cash and cash equivalents totaling $1.3 million compared to $7 million as of July 31, 2025. For the six months ended January 31, 2026, the Company used $7.7 million of cash flows for its operating activities (composed of $3.2 million net loss after items not affecting cash and $4.5 million net change in non-cash working capital items), which were partially offset by the cash inflows of $2 million from two private placements completed during the same period. The Company is debt- free.
To consult the Interim Consolidated Financial Statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations for the three and the six months ended January 31, 2026 and 2025, please visit the following link:https://groupedevonian.com/investor-center/financial-reports/ or see the Company profile on SEDAR+.
About Thykamine™
Thykamine™, the first pharmaceutical product issued from Devonian's SUPREX™ platform, is a highly innovative product for the prevention and treatment of health conditions related to inflammation and oxidative stress including ulcerative colitis, atopic dermatitis, psoriasis, rheumatoid arthritis, and other autoimmune disorders. The anti-inflammatory, anti-oxidative and immunomodulatory properties of Thykamine™ have been demonstrated by a considerable number of in vitro and in vivo studies as well as in a Phase IIa clinical study in patients with mild-to-moderate distal ulcerative colitis and in a large Phase II study in adult patients with mild-to-moderate Atopic Dermatitis. Both Thykamine™ and SUPREX™ platform are covered by patents issued in several North American, European, and Asian countries.
About Devonian
Devonian Health Group Inc. is a clinical stage pharmaceutical company specializing in the development of drugs for various auto-immune fibroinflammatory disease with novel therapeutic approaches to targeting unmet medical needs. Devonian's core strategy is to develop prescription drugs for the treatment of fibroinflammatory autoimmune diseases including but not limited to atopic dermatitis, radiodermatitis and ulcerative colitis.
Devonian is involved in the development of high-value cosmeceutical products leveraging the same proprietary approach employed with their pharmaceutical offerings. Devonian owns a commercialization unit, Altius, focused on selling prescription pharmaceutical products in Canada, under licenses from brand name pharmaceutical companies.
Devonian Health Group Inc. was incorporated in 2015 and is headquartered in Quebec, Canada where it owns a state-of-the art extraction facility. Devonian is traded publicly on the TSX Venture Exchange (the "Exchange") (TSXV: GSD) and currently quoted on the OTCQB Venture Market (OTCQB: DVHGF).
For more information, visit www.groupedevonian.com.
Cautionary Note Regarding Forward-Looking Statements
All statements, other than statements of historical fact, contained in this press release including, but not limited to those relating to the Company transitioning toward a focused biopharmaceutical development strategy centered on Thykamine™, the strategic alternatives for the Altius business, the financing options to support the Company's pipeline, the revenues driven by Cleo-35®,the completion of radiodermatitis prevention pivotal clinical study and pre-clinical studies, the potential hepatoprotective effect preventing the progression of liver disease in MASH model, anti-inflammatory and anti-fibrotic effects with the potential to target the underlying pathology of the disease and thus halt the progression of the disease; and generally, the above "About Devonian" paragraph, all of which essentially describes the Company's outlook, constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws (collectively, "forward-looking statements"), and are based on expectations, estimates and projections as of the time of this press release. Such forward-looking statements may be identified by the use of words such as "intends", "believes", "expects", or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", or "will" be taken, occur or be achieved.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that these assumptions will prove to be correct and there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in our other filings with the applicable securities regulators of Canada. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Devonian Health Group Inc.
Devonian Health Group Inc., Dennis Turpin, CPA, Chief Financial Officer, E-mail: investors@groupedevonian.com