Medicure Reports Financial Results For Quarter Ended March 31, 2017

WINNIPEG, May 24, 2017 /PRNewswire/ - Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a specialty pharmaceutical company, today reported its results from operations for the quarter ended March 31, 2017.

Quarter Ended March 31, 2017 Highlights:

• Recorded net revenue of $8.7 million during the quarter ended March 31, 2017 compared to $6.1 million for the quarter ended March 31, 2016, an increase of 43%;
  
  
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)¹ for the quarter ended March 31, 2017 was negative $1.5 million compared to EBITDA of $2.1 million for the quarter ended March 31, 2016;
  
  
• Net loss for the quarter ended March 31, 2017 was $5.1 million, compared to net income of $792,000 for the quarter ended March 31, 2016;

Financial Results

Net revenues for the quarter ended March 31, 2017 were $8.7 million compared to $6.1 million for the quarter ended March 31, 2016, an increase of 43%. Net revenue from the sale of AGGRASTAT for the quarter ended March 31, 2017 was $7.0 million compared to $6.1 million for the quarter ended March 31, 2016, an increase of 16%. Net revenues for the three months ended March 31, 2017 include $1.7 million in revenue from the Apicore business, which was acquired on December 1, 2016.

The increase in AGGRASTAT revenue compared to 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. The Company's commercial team continues to work on expanding its customer base. For the quarter ended March 31, 2017, the Company experienced its highest level of AGGRASTAT hospital demand in the history of owning the product. Hospital demand exceeded wholesale demand due to reductions in inventory levels within the wholesale channel. During this period, wholesalers adjusted their target days-on-hand range from 25-30 to 15-20 days.

In regards to revenues from the Apicore business it is important to note that historically Apicore's revenues have been significantly lower in the first quarter of each year when compared to the remainder of the year.

Adjusted EBITDA for the quarter ended March 31, 2017 after adjusting for $61,000 of share-based compensation (a non-cash expense item) was negative $1.5 million compared to adjusted EBITDA of $2.1 million for the quarter ended March 31, 2016 after adjusting for $100,000 of share-based compensation (a non-cash expense item) and $251,000 relating to on-going costs pertaining to the one-time sNDA filing.

Net loss for the quarter ended March 31, 2017 was $5.1 million or $0.33 per share, compared to net income of $792,000 or $0.05 per share for the quarter ended March 31, 2016. The net loss primarily relates to the acquisition of Apicore, which has historically had significantly lower revenues in the first quarter of each fiscal year when compared to the remaining quarters. The Apicore business resulted in higher cost of goods sold by $2.1 million, selling general and administration expenses by $1.6 million and research and development expenses by $4.0 million during the quarter ended March 31, 2017. The Apicore research and development expenses include $2.9 million of amortization relating to property, plant and equipment and intangible assets. As well, finance expense increased due to interest on the loan from Crown Capital, which was obtained by the Company in November 2016. Expenses relating to the AGGRASTAT business also increased with selling, general and administration expenses increasing for the quarter ended March 31, 2017 by approximately $400,000 due to staff additions resulting in higher personnel expenses, and higher selling costs associated with the growth in the AGGRASTAT business. Research and development expenses increased by $502,000 as a result of costs associated with the Company's development of additional cardiovascular products.

At March 31, 2017, the Company had unrestricted cash totaling $10.5 million compared to $12.3 million as of December 31, 2016. The decrease in cash is due to the net loss, after adjusting for non-cash items, higher interest payments made during the quarter relating to the debt obtained in November 2016 and the acquisition of 145,000 Class E common shares of Apicore during the quarter. Cash used in operating activities for the quarter ended March 31, 2017 were $834,000 compared to cash flows from operating activities of $4.8 million for the quarter ended March 31, 2016.

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

Notes

⁽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 one-time items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the quarters ended March 31, 2017 and 2016 results prepared using International Financial Reporting Standards ("IFRS"), do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

Reminder for the Conference Call Tomorrow

Conference Call Info:

Topic: Medicure's Q1 Results
Call date: Thursday, May 25, 2017
Time: 7:30 AM Central Time (8:30 AM Eastern Time)
Canada toll-free: 1 (888) 465-5079 Canada toll: 1 (416) 216-4169
United States toll-free: 1 (888) 545-0687
Passcode: 8196 147#

Webcast: This conference call will be webcast live over the internet and can be accessed from the Medicure investor relations page at the following link: http://www.medicure.com/investors.html

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 specialty pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. hospital market. The primary focus of the Company is the marketing and distribution of AGGRASTAT (tirofiban hydrochloride) in the United States, where it is sold through the Company's U.S. subsidiary, Medicure Pharma, Inc. Additionally, Medicure holds a majority interest in Apicore. For more information on Medicure please visit www.medicure.com.

About AGGRASTAT

Indications and Usage
AGGRASTAT is indicated to reduce the rate of thrombotic cardiovascular events (combined endpoint of death, myocardial infarction, or refractory ischemia/repeat cardiac procedure) in patients with non-ST elevation acute coronary syndrome (NSTE-ACS).

Dosage and Administration
Administer intravenously 25 mcg/kg within 5 minutes and then 0.15 mcg/kg/min for up to 18 hours. In patients with creatinine clearance 60 mL/min, give 25 mcg/kg within 5 minutes and then 0.075 mcg/kg/min.

Clinical Experience
In clinical studies with the HDB regimen, Aggrastat was administered in combination with aspirin, clopidogrel and heparin or bivalirudin to over 8,000 patients for typically 24 hours.

Contraindications
Known hypersensitivity to any component of Aggrastat History of thrombocytopenia with prior exposure to Aggrastat Active internal bleeding, or history of bleeding diathesis, major surgical procedure or severe physical trauma within previous month.

Warnings and Precautions
Aggrastat can cause serious bleeding. If bleeding cannot be controlled discontinue Aggrastat. Thrombocytopenia: Discontinue Aggrastat and heparin.

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