Dr. Albert Friesen reports

MEDICURE REPORTS FINANCIAL RESULTS FOR QUARTER ENDED SEPTEMBER 30, 2023

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

Quarter ended Sept. 30, 2023, highlights:

• Recorded total net revenue of $5.0-million during the quarter ended Sept. 30, 2023, compared with $5.3-million for the quarter ended Sept. 30, 2022;
• Recorded total net revenue from the sale of Aggrastat of $2.4-million during the quarter ended Sept. 30, 2023, compared with $3.0-million for the quarter ended Sept. 30, 2022;
• Recorded total net revenue from the Marley Drug Inc. business of $2.2-million ($670,000 from sales of Zypitamag and $1.53-million from other pharmacy revenue) during the quarter ended Sept. 30, 2023, compared with $1.8-million ($430,000 from sales of Zypitamag and $1.37-million from other pharmacy revenue) for the quarter ended Sept. 30, 2022;
• Recorded net revenue through insured business from the sale of Zypitamag of $398,000 during the quarter ended Sept. 30, 2023, compared with $434,000 through insured business for the quarter ended Sept. 30, 2022;
• Adjusted earnings before interest, taxes, depreciation and amortization for the quarter ended Sept. 30, 2023, were $429,000 compared with adjusted EBITDA of $1.4-million for the quarter ended Sept. 30, 2022;
• Net income for the quarter ended Sept. 30, 2023, was $84,000 or one cent per share compared with net income of $1.1-million or 11 cents per share for the quarter ended Sept. 30, 2022;
• Research and development expenses for the quarter ended Sept. 30, 2023, were $508,000, and the company remains committed to the completion of the PNPO deficiency phase 3 clinical trial;
• The company remains cash flow positive and carries no debt on its balance sheet.

Financial results

Net Aggrastat product sales for the three-month period ended Sept. 30, 2023, were $2.4-million compared with $3.0-million during the three-month period ended Sept. 30, 2022. The decrease in Aggrastat revenues from the prior year when compared with the previous year is the result of a decrease in the volume of Aggrastat sold and competition from generic tirofiban.

Zypitamag contributed $398,000 of revenue for the quarter ended Sept. 30, 2023, compared with $434,000 for the quarter ended Sept. 30, 2022. The decrease in revenue through insured channels is primarily a result of wholesaler returns and higher coverage gap payments to pharmacy benefit managers. This amount does not include sales of Zypitamag through the Marley Drug business.

The Marley Drug business contributed $2.2-million of revenue for the quarter ended Sept. 30, 2023, compared with $1.8-million for the quarter ended Sept. 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 Sept. 30, 2023, was $429,000 compared with $1.4-million for the quarter ended Sept. 30, 2022. Decreased adjusted EBITDA for the quarter ended Sept. 30, 2023, resulted from lower net revenue, higher selling and R&D expenses, partially offset by lower cost of goods sold during the current quarter.

Net income for the quarter ended Sept. 30, 2023, was $84,000 or one cent per share compared with net income of $1.1-million or 11 cents per share for the quarter ended Sept. 30, 2022. The main factor contributing to the decrease in net income recorded for the quarter ended Sept. 30, 2023, was lower net revenue, higher selling and R&D expenses, partially offset by lower cost of goods sold during the current period.

At Sept. 30, 2023, the company had unrestricted cash totalling $5.6-million, an increase from $4.9-million of unrestricted cash held as of Dec. 31, 2022. Cash flows from operating activities for the nine months ended Sept. 30, 2023, were $1.2-million compared with cash flows from operating activities of $1.3-million for the nine months ended Sept. 30, 2022.

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

Conference call info

Topic:  Medicure's third quarter 2023 results

Call date:  Wednesday, Nov. 22, 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.