Dr. Albert Friesen reports

MEDICURE REPORTS FINANCIAL RESULTS FOR QUARTER AND YEAR ENDED DECEMBER 31, 2023

Medicure Inc. has released its results from operations for the quarter and year ended Dec. 31, 2023.

Quarter and year ended Dec. 31, 2023, highlights:

• Recorded total net revenue of $21.7-million during the year ended Dec. 31, 2023, compared with $23.1-million for the year ended Dec. 31, 2022;
• Recorded total net revenue of $5.1-million during the quarter ended Dec. 31, 2023, compared with $6.3-million for the quarter ended Dec. 31, 2022;
• Recorded total net revenue from the sale of Aggrastat of $9.7-million during the year ended Dec. 31, 2023, compared with $11.7-million for the year ended Dec. 31, 2022;
• Recorded total net revenue from the Marley Drug Inc. business of $9.6-million ($2.6-million from sales of Zypitamag and $7.0-million from other pharmacy revenue) during the year ended Dec. 31, 2023, compared with $7.8-million ($1.5-million from sales of Zypitamag and $6.3-million from other pharmacy revenue) for the year ended Dec. 31, 2022;
• Recorded net revenue through insured business from the sale of Zypitamag of $2.4-million during the year ended Dec. 31, 2023, compared with $3.6-million through insured business for the year ended Dec. 31, 2022;
• Adjusted earnings before interest, taxes, depreciation and amortization for the year ended Dec. 31, 2023, were $1.9-million compared with adjusted EBITDA of $3.0-million for the year ended Dec. 31, 2022;
• Net loss for the year ended Dec. 31, 2023, was $922,000 or nine cents per share compared with net income of $1.4-million or 13 cents per share for the year ended Dec. 31, 2022; the net loss is due in large part to non-cash expenses including $1.6-million of amortization on the purchase of Zypitamag and Marley Drug, and $288,000 of share-based compensation expense on stock options granted to employees and directors during the current year.

Financial results

Net Aggrastat product sales for the year ended Dec. 31, 2023, were $9.7-million compared with $11.7-million for the year ended Dec. 31, 2022. The decrease in Aggrastat revenues compared with the previous year is the result of a decrease in the volume of Aggrastat sold and pricing competition from generic tirofiban.

Zypitamag through insured channels contributed $2.4-million of revenue for the year ended Dec. 31, 2023, compared with $3.6-million for the year ended Dec. 31, 2022. The decrease in revenue through insured channels is primarily a result of higher wholesaler fees and coverage gap payments and lower reimbursement from pharmacy benefit managers. This amount does not include sales of Zypitamag through the Marley Drug business.

The Marley Drug business contributed $9.6-million of revenue for the year ended Dec. 31, 2023, compared with $7.8-million for the year ended Dec. 31, 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 marketing, fulfilment partnerships, its e-commerce platform and increased sales of Zypitamag.

Adjusted EBITDA for the year ended Dec. 31, 2023, was $1.9-million compared with $3.3-million for the year ended Dec. 31, 2022. Decreased adjusted EBITDA for the year ended Dec. 31, 2023, resulted from lower Aggrastat net revenue and higher cost of goods, partially offset by lower research and development expenses.

Net loss for the year ended Dec. 31, 2023, was $922,000 or nine cents per share compared with net income of $1.4-million or 13 cents per share for the year ended Dec. 31, 2022. The main factors contributing to the net loss recorded for the year ended Dec. 31, 2023, were lower net revenue and higher selling expenses, partially offset by lower R&D expenses.

At Dec. 31, 2023, the company had unrestricted cash totalling $6.4-million, up from $4.9-million of unrestricted cash held as of Dec. 31, 2022. Cash flows from operating activities for the year ended Dec. 31, 2023, totalled $2.1-million compared with $1.8-million for the year ended Dec. 31, 2022.

The company plans to hold an investor conference call in May, 2024, to present the results for the three months ended March 31, 2024, with date and dial-in information to be provided. The full financial statements are available at SEDAR+ and on 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.