Medicure Reports Second Quarter 2016 Financial Results
WINNIPEG, Aug. 10, 2016 /PRNewswire/ - Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTCQB:MCUJF), a specialty pharmaceutical company, today reported its results from operations for the quarter ended June 30, 2016.
Quarter Ended June 30, 2016 Highlights:
- Recorded net revenue of $7.7 million during the quarter ended June 30, 2016, an increase of 103% compared to $3.8 million for the quarter ended June 30, 2015;
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)1 for the quarter ended June 30, 2016 was $2.4 million compared to $1.1 million for the quarter ended June 30, 2015;
- Net income for the quarter ended June 30, 2016 was $433,000, compared to $441,000 for the quarter ended June 30, 2015;
Financial Results
Net revenue from the sale of AGGRASTAT® (tirofiban HCl) finished product for the quarter ended June 30, 2016 was $7.7 million compared to $3.8 million for quarter ended June 30, 2015, an increase of 103%. Net revenue from the sale of AGGRASTAT® (tirofiban HCl) finished product for the six months ended June 30, 2016 was $13.8 million compared to $7.1 million for the six months ended June 30, 2015, an increase of 93%.
The increase in revenue compared to the comparable quarter and six month period for the previous year is primarily attributable to an increase in the number of new hospital customers using AGGRASTAT and the continued 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 periods when compared to the same periods in the prior year.
Adjusted EBITDA for the quarter ended June 30, 2016 after adjusting for $1.2 million of share-based compensation (a non-cash expense item) and $73,000 relating to on-going costs pertaining to the one-time supplemental New Drug Application ("sNDA") filing, was $2.4 million compared to Adjusted EBITDA of $1.1 million for the quarter ended June 30, 2015 which was adjusted for $319,000 of share-based compensation. Adjusted EBITDA for the six months ended June 30, 2016 after adjusting for $1.4 million of share-based compensation (a non-cash expense item) and $324,000 relating to on-going costs pertaining to the one-time sNDA filing, was $4.5 million compared to Adjusted EBITDA of $2.1 million for the six months ended June 30, 2015 which was adjusted for $742,000 of share-based compensation.
Net income for the quarter ended June 30, 2016 was $433,000 or $0.03 per share, and was consistent when compared to $441,000 or $0.03 per share for the quarter ended June 30, 2015. Net income for the six months ended June 30, 2016 was $1.2 million or $0.08 per share compared to $541,000 or $0.04 per share for the six months ended June 30, 2015.
The increase in net income for the six months ended June 30, 2016 is the result of higher revenues, when compared to the same period in the prior year. This increase was partially offset by higher selling, general and administration and research and development expenses and higher cost of goods sold. The increase in selling, general and administration expenses is primarily due to higher share-based compensation, which totaled $1.4 million during the six months ended June 30, 2016 compared to $742,000 during the six months ended June 30, 2015, an increased number of staff, resulting in higher personnel expenses and higher selling costs associated with the growth in AGGRASTAT revenues. The increase in research and development expenses is due to development costs incurred during the three months ended June 30, 2016 associated with the highvalue cardiovascular generic drug being developed in collaboration between Medicure and Apicore. The anticipated filing for the abbreviated New Drug Application ("ANDA") with the U.S. Food and Drug Administration ("FDA") is by the end of 2016.
At June 30, 2016, the Company had cash totaling $7.5 million compared to $3.6 million as of December 31, 2015. The increase in cash is primarily due to the collection of accounts receivable balances that were outstanding as at December 31, 2015. Cash flows from operating activities for the six months ended June 30, 2016 were $4.5 million compared to $1.2 million for the six months ended June 30, 2015.
All amounts referenced herein are in Canadian dollars unless otherwise noted.
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 one-time items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the quarter and six months ended June 30, 2016 and 2015 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 details are as follows:
Topic: Medicure's Q2 2016 Results
Date: Thursday, August 11, 2016
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: 6538569 #
Webcast: This conference call will be webcast live over the internet and can be accessed from the Medicure investor relations page at the following: http://www.medicure.com/investors.html
You may request country specific international access info by emailing us in advance at info@medicure.com.
Management will accept and answer questions related to the financial results and its operations during the Q&A period at the end of the conference call. A recording of the call will be available following the event at www.medicure.com.
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