An anonymous director reports

MEDICURE REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS

Medicure Inc. today released its results from operations for the third quarter ended Sept. 30, 2015.

All amounts referenced herein are in Canadian dollars unless otherwise noted.

Quarter three highlights

• Recorded net revenue of $5.4-million during the quarter ended Sept. 30, 2015, an increase of 155 per cent compared with $2.1-million for the quarter ended Aug. 31, 2014, and an increase of 133 per cent compared with $2.3-million for the three months ended Sept. 30, 2014;
• Third quarter earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for one-time regulatory costs and for share-based compensation were $2.1-million, compared with $805,000 for the quarter ended Aug. 31, 2014;
• Announced the submission of a supplemental new drug application (sNDA) to the U.S. Food and Drug Administration (FDA) to expand the label for Aggrastat (tirofiban hydrochloride) to include the treatment of patients presenting with ST-segment-elevation myocardial infarction (STEMI). Total one-time costs related to the sNDA in the quarter were $1.9-million.

In December, 2014, the company announced a change in its financial year-end from May 31 to Dec. 31. As a result of the change in year-end, results for the current quarter ending on Sept. 30, 2015, are compared with the closest comparable fiscal period, which is the quarter ending on Aug. 31, 2014.

Financial results

Net revenue from the sale of Aggrastat finished product for the third quarter was $5.4-million, compared with $2.1-million for the fiscal quarter ended Aug. 31, 2014, and compared with estimated revenue of $2.3-million for the three months ended Sept. 30, 2014.

Net revenue from the sale of Aggrastat finished product for the nine months ended Sept. 30, 2015, was $12.6-million, compared with $5.6-million for the nine months ended Aug. 31, 2014, and compared with estimated revenue of $6-million for the nine months ended Sept. 30, 2014.

The increase in revenue compared with the comparable quarter for the previous year is primarily attributable to an increase in the number of new hospital customers using Aggrastat and the increase in market share held by the product. Revenue growth was also aided by favourable fluctuations in the U.S.-dollar exchange rate throughout the third quarter.

The company's commercial team continues to work on further expanding its customer base, and the company expects sales of Aggrastat to continue to increase over the coming quarters.

EBITDA for the third quarter ended Sept. 30, 2015, after adjusting for $174,000 of share-based compensation (a non-cash expense item) and $1.9-million relating to the one-time sNDA filing, was $2.1-million. The increase in adjusted EBITDA was 160 per cent, compared with adjusted EBITDA of $805,000 for the quarter ended Aug. 31, 2014. Third-quarter EBITDA not adjusted for share-based compensation and the one-time sNDA filing costs was $13,000 for the quarter ended Sept. 30, 2015.

EBITDA for the nine months ended Sept. 30, 2015, after adjusting for $915,000 of share-based compensation (a non-cash expense item) and $1.9-million relating to the one-time sNDA filing was $4.2-million. The increase in adjusted EBITDA was 114 per cent, compared with EBITDA of $2-million for the nine months ended Aug. 31, 2014. EBITDA for the nine months ended Sept. 30, 2015, not adjusted for share-based compensation and the one-time sNDA filing costs was $1.4-million.

Net loss for the third quarter ended Sept. 30, 2015, was $348,000 or two cents per share, compared with net income of $1.3-million, or 11 cents per share, for the quarter ended Aug. 31, 2014. Net income for the nine months ended Sept. 30, 2015, was $194,000 or one cent per share, compared with $402,000, or three cents per share, for the nine months ended Aug. 31, 2014. The decrease in net income was as a result of higher than usual other income in the same period of the previous year resulting from the investment structuring services income earned from the July 2, 2014, Apicore transaction, increased research and development expenses (mainly relating to the sNDA filing), and increased selling, general and administrative expenses associated with the expansion of company's operations, partially offset by significantly higher revenues.

At Sept. 30, 2015, the company had cash totalling $4.1-million, compared with $494,000 as of Dec. 31, 2014, and compared with $503,000 as of Aug. 31, 2014. The increase in cash is primarily due to a private placement financing completed during the second quarter for gross proceeds of $4-million.

Cash flows from operating activities for the nine months ended Sept. 30, 2015, were $327,000, compared with $511,000 for the nine months ended Aug. 31, 2014.

Reminder for the conference call tomorrow

Conference call details are as follows:

Topic:  Medicure's third-quarter results call

Date:  Tuesday, Nov. 10, 2015

Time:  8 a.m. Central Time (9 a.m. Eastern Time)

Canada toll-free:  1-866-215-5508

U.S. toll-free:  1-877-691-2551

Passcode:  41066496

You may request country specific international access info by e-mailing in advance at info@medicure.com.

Management will accept and answer questions related to the financial results and its 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 on the company's website.

                                                                                                                                                                                                                 
     CONDENSED CONSOLIDATED INTERIM STATEMENTS OF NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)    
                                      (expressed in Canadian dollars)   
                                                                   
                             Three months ended  Three months ended   Nine months ended  Nine months ended
                                       Sept. 30,            Aug. 31,           Sept. 30,           Aug. 31,
                                           2015                2014                2015               2014
Revenue
Product sales, net                    5,415,992           2,125,483          12,555,849          5,557,769
Cost of goods sold                      542,071             276,005           1,448,710            780,061
Gross profit                          4,873,921           1,849,478          11,107,139          4,777,708
Expenses
Selling, general and
administrative                        2,393,240           1,081,026           6,839,623          3,140,960
Research and development              2,643,757             305,650           3,349,333            577,516
                                      5,036,997           1,386,676          10,188,956          3,718,476
Income before the undernoted           (163,076)            462,802             918,183          1,059,232
Other expense (income)
Investment structuring
services                                      -          (1,132,940)                  -         (1,132,940)
Revaluation of long-term
derivative                              (43,679)                  -               8,829                  -
Loss on settlement of debt                    -                   -              60,595                  -
Finance costs (income)
Finance income                             (133)                (14)               (225)               (43)
Finance expense                         201,798             237,518             612,815          1,785,921
Foreign exchange loss (gain),
net                                      26,583              10,767              42,333              4,095
                                        228,248             248,271             654,923          1,789,973
Net income (loss)                      (347,648)          1,347,471             193,836            402,199
Translation adjustment                  315,634               8,382             470,900             52,464
Comprehensive income (loss)             (32,014)          1,355,853             664,736            454,663
Basic income (loss) per share             (0.02)               0.11                0.01               0.03
Diluted income (loss) per share           (0.02)               0.10                0.01               0.03
Weighted average number of
common shares used in computing
basic income (loss) per share        14,366,917          12,199,841          13,336,109         12,199,841
Weighted average number of
common shares used in computing
fully diluted income (loss)
per share                            14,366,917          13,844,873          15,558,196         13,844,873

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