Mr. Ken d'Entremont reports

MEDEXUS ANNOUNCES STRONG FISCAL Q2 2024 RESULTS, INCLUDING QUARTERLY REVENUE OF US$30.3 MILLION

Medexus Pharmaceuticals Inc. has released its operating and financial results and has provided a business update for the company's second fiscal quarter ended Sept. 30, 2023. All dollar amounts in this news release are in U.S. dollars unless specified otherwise.

Financial highlights:

• Revenue of $30.3-million for Q2 fiscal 2024, a year-over-year increase of 9.4 per cent; the increase was primarily attributable to the recognition of 100 per cent of Gleolan net sales in total revenue and continuing strong Rupall demand growth, including in part due to orders relative to scheduled price increases;
• Adjusted earnings before interest, taxes, depreciation and amortization of $5.3-million for Q2 fiscal 2024, a year-over-year increase of 26.2 per cent; the increase was primarily attributable to the increase in revenue mentioned above and a reduction in operating expenses;
• Operating income of $3.6-million for Q2 fiscal 2024, a year-over-year increase of $1.7-million;
• Net loss of $1.1-million for Q2 fiscal 2024, a year-over-year improvement of $1.6-million;
• Adjusted net loss, which adjusts for the unrealized gains and losses included in net income (loss), of $1.2-million for Q2 fiscal 2024, a year-over-year improvement of $1.6-million;
• Available liquidity of $37.5-million (Sept. 30, 2023), consisting of $19.5-million of cash and cash equivalents and $18.0-million available but then undrawn under the accordion feature of the company's credit agreement with BMO; Medexus applied the full $18.0-million amount, together with cash on hand, toward repayment of the company's 6 per cent convertible debentures fully in cash in an amount equal to $51.1-million (Canadian) (or approximately $37.5-million) upon their maturity subsequent to period-end on Oct. 16, 2023; in addition, subsequent to period-end, in October, 2023, Medexus completed a bought deal public offering of units for $11.5-million (Canadian) aggregate gross proceeds (or $10.8-million (Canadian) aggregate net proceeds before expenses).

Ken d'Entremont, chief executive officer of Medexus, commented: "We are pleased to report a robust quarter. Rupall continued to see strong demand growth, contributing significantly to this past quarter's year-over-year revenue increase. While we continue to focus on maintaining stability of our base business and generating cash from operations, we also continue to look for near-term transaction opportunities to augment our product portfolio, increase the scale of our operations and deliver long-term growth."

Marcel Konrad, chief financial officer of Medexus, further noted: "Over all, we are pleased to report our sixth consecutive quarter of positive operating income and eighth consecutive quarter of positive adjusted EBITDA. In addition, our convertible debentures have now been fully repaid in cash. This has simplified our balance sheet, and leaves our $56.5-million BMO credit facilities, which continue to benefit from an attractive interest rate, as our only remaining debt. We were also able to further bolster our balance sheet by completing an $11.5-million (Canadian) bought deal public offering of units in October. Adjusting our quarter-end cash balance for this series of subsequent October transactions, we had approximately $8.5-million in cash or $8.0-million after underwriting commissions and before expenses of the public offering, putting us on solid footing to continue maintaining and growing our business over the coming quarters."

Mr d'Entremont then concluded: "We would also like to welcome Nancy Phelan, who joined the Medexus board of directors on Sept. 21. Nancy brings over 25 years of experience in commercial strategy and operations in life sciences, and has held diverse senior leadership positions at Indegene, Novartis, Adhera, as well as Pfizer, Wyeth, Bristol-Myers Squibb and Schering-Plough. We are looking forward to continuing to work with Nancy."

Additional information

Medexus's financial statements and management's discussion and analysis for the fiscal quarter ended Sept. 30, 2023, are available on Medexus's corporate website and in the company's corporate filings on SEDAR+.

Conference call details

Medexus will host a conference call at 8 a.m. Eastern Time on Thursday, Nov. 9, 2023, to discuss the company's operating and financial results and corporate updates for Q2 fiscal 2024.

To participate in the call, please dial the following numbers:

• 888-506-0062 (toll-free) for Canadian and U.S. callers;
• 1-973-528-0011 for international callers;
• Access code: 369779.

A live webcast of the call will be available in the investors section of Medexus's corporate website.

A replay of the call will be available approximately one hour following the end of the call through Thursday, Nov. 16, 2023. To listen to the replay, please dial the following numbers:

• 877-481-4010 for Canadian and U.S. callers;
• 1-919-882-2331 for international callers;
• Conference ID: 49370.

A replay of the webcast will be available in the investors section of Medexus's corporate website until Saturday, Nov. 9, 2024.

About Medexus Pharmaceuticals Inc.

Medexus is a leading specialty pharmaceutical company with a strong North American commercial platform and a growing portfolio of innovative and rare disease treatment solutions. Medexus's current focus is on the therapeutic areas of oncology, hematology, rheumatology, autoimmune diseases, allergy and dermatology.

We seek Safe Harbor.