Dr. Albert Friesen reports

MEDICURE REPORTS FINANCIAL RESULTS FOR QUARTER ENDED JUNE 30, 2023

Medicure Inc. has released its results from operations for the quarter ended June 30, 2023.

Quarter ended June 30, 2023, highlights:

• Recorded total net revenue of $6.0-million during the quarter ended June 30, 2023, compared with $5.7-million for the quarter ended June 30, 2022;
• Recorded total net revenue from the sale of Aggrastat of $2.6-million during the quarter ended June 30, 2023, compared with $2.9-million for the quarter ended June 30, 2022;
• Recorded total net revenue from the sale of Zypitamag of $1.4-million ($722,000 from insured business and $678,000 through Marley Drug Inc.) during the quarter ended June 30, 2023, compared with $1.7-million ($1.4-million from insured business and $300,000 through Marley Drug) for the quarter ended June 30, 2022;
• Recorded total net revenue from the Marley Drug business of $2.7-million during the quarter ended June 30, 2023, compared with $1.8-million for the quarter ended June 30, 2022;
• Adjusted earnings before interest, taxes, depreciation and amortization (1) for the quarter ended June 30, 2023, were $948,000 compared with adjusted EBITDA of negative $210,000 for the quarter ended June 30, 2022;
• Net income for the quarter ended June 30, 2023, was $253,000 or two cents per share compared with net loss of $683,000 or six cents per share for the quarter ended June 30, 2022.

Financial results

The modest decrease in Aggrastat revenues when compared with the same period in the previous year, as described above, is the result of a decrease in the volume of Aggrastat sold in 2023 when compared with 2022, in conjunction with an increase in wholesaler fees.

Zypitamag contributed $722,000 of revenue for the quarter ended June 30, 2023, compared with $1.1-million for the quarter ended June 30, 2022. The decrease in revenue through insured channels is primarily a result of increased fees to wholesalers and pharmacy benefit managers. This amount does not include sales of Zypitamag through the Marley Drug business.

The Marley Drug business contributed $2.7-million of revenue for the quarter ended June 30, 2023, compared with $1.8-million for the quarter ended June 30, 2022. Marley Drug is a U.S. pharmacy licensed to ship medications to all 50 states, Washington, D.C., and Puerto Rico. It serves thousands of customers and provides another channel for direct-to-consumer marketing, distribution and improved profit margin for Zypitamag. The increase in revenue is a result of increased sales through its e-commerce platform, including increased sales of Zypitamag.

Adjusted EBITDA for the quarter ended June 30, 2023, was $948,000 compared with negative $210,000 for the quarter ended June 30, 2022. Increased adjusted EBITDA for the quarter ended June 30, 2023, resulted from increased Marley Drug revenue and reduced research and development expenses, offset by lower revenues from the product sales of Aggrastat and Zypitamag through insured channels.

Net income for the quarter ended June 30, 2023, was $253,000 or two cents per share compared with net loss of $683,000 or six cents per share for the quarter ended June 30, 2022. The main factors contributing to the increase in net income recorded for the quarter ended June 30, 2023, were increased Marley Drug revenue and reduced research and development expenses, offset by lower revenues from the product sales of Aggrastat and Zypitamag through insured channels.

At June 30, 2023, the company had unrestricted cash totalling $5.4-million, an increase from $4.9-million of unrestricted cash held as of Dec. 31, 2022. Cash flows from operating activities for the quarter ended June 30, 2023, were $766,000 compared with cash flows from operating activities of $1.4-million for the period ended June 30, 2022.

The full financial statements are available at SEDAR and on the company's website.

Note

(1) The company defines EBITDA as earnings before interest, taxes, depreciation, amortization, and other income or expense, and adjusted EBITDA as EBITDA adjusted for non-cash and non-recurring items. The terms EBITDA and adjusted EBITDA, as they relate to the three months and year ended Dec. 31, 2022, and 2021, results prepared using international financial reporting standards, do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable with similar measures presented by other companies.

Conference call info

Topic:  Medicure's second quarter 2023 results

Call date:  Monday, July 31, 2023

Time:  7:30 a.m. Central Time (8:30 a.m. Eastern Time)

Toll-free:  1-888-506-0062

International:  1-973-528-0011

Participant access code:  599508

Webcast:  This conference call will be webcast live over the Internet.

You may request international country-specific access information by e-mailing the company in advance. Management will accept and answer questions related to the financial results and operations during the question-and-answer period at the end of the conference call. A recording of the call will be available following the event at the company's website.

About Medicure Inc.

Medicure is a pharmaceutical company focused on the development and commercialization of therapies for the U.S. cardiovascular market. The present focus of the company is the marketing and distribution of Aggrastat (tirofiban hydrochloride) injection and Zypitamag (pitavastatin) tablets in the United States, where they are sold through the company's U.S. subsidiary, Medicure Pharma Inc. Medicure also operates Marley Drug, a pharmacy located in North Carolina that offers an extended supply drug program serving all 50 states, Washington, D.C., and Puerto Rico. Marley Drug is committed to improving the health status of its patients and the communities it serves while reducing overall health care costs for employers and other health care consumers.

We seek Safe Harbor.