Medicure Reports Financial Results for Quarter and Year Ended December 31, 2019
WINNIPEG, April 15, 2020 /PRNewswire/ - Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a pharmaceutical company, today reported its results from operations for the quarter and year ended December 31, 2019.
Year Ended December 31, 2019 Highlights:
Net revenues for the year ended December 31, 2019 were $20.2 million compared to $29.1 million for the year ended December 31, 2018. Net revenues from AGGRASTAT® for the year ended December 31, 2019 were $19.4 million compared to $28.5 million for the year ended December 31, 2018. ZYPITAMAGTM, which was launched commercially by the Company in 2018, contributed $183,000 of net revenues for the year ended December 31, 2019 compared to $652,000 for the year ended December 31, 2018. The decrease in ZYPITAMAGTM net revenues from 2018 to 2019 is a result of initial stocking at the wholesale level during the year ended December 31, 2018. Additionally, during 2019, the Company recorded revenues of $618,000 from the sale of ReDSTM medical devices in the United States.
Net revenues for the three months ended December 31, 2019 were $3.5 million, consisting of $3.0 million from AGGRASTAT®, $96,000 from ZYPITAMAGTM and $346,000 from ReDSTM compared to $7.9 million for the three months ended December 31, 2018, which was entirely from AGGRASTAT®.
The Company continues to show strong patient market share with AGGRASTAT®, however, the strong patient market share is offset by increased price competition caused by enhanced generic Integrilin competition, which resulted in lower discounted prices for AGGRASTAT® throughout 2019. There was also some decrease in the volume of the product sold compared to 2018. The Company is beginning to see an increase in demand for ZYPITAMAGTM and expects growth in revenues going forward. Although ReDSTM contributed $618,000 in revenues during the year ended December 31, 2019, due to the extended length of the sales cycle and uptake of the product with customers, the Company does not expect to see significant sales from ReDSTM going forward and its focus is on the sales and marketing of ZYPITAMAGTM and AGGRASTAT®.
The Company has considered indicators of impairment as at December 31, 2019 and recorded a write‑down of intangible assets related to the ReDSTM license during the year ended December 31, 2019 totaling $6.3 million as a result of uncertainties with ReDSTM being experienced in regards to the length of the sales cycle and uptake of the product with customers. This has resulted in the Company's sales being below the committed amounts required by the exclusive marketing and distribution agreement with Sensible Medical Innovations Ltd. ("Sensible"), pertaining to ReDSTM. Additionally, a loss of $6.3 million was recorded within other comprehensive loss from the re-valuation of the investment in Sensible made during the year ended December 31, 2019. Despite recording this impairment on the ReDSTM license and the investment in Sensible, the Company continues to market ReDS™ PRO and continues to work to safeguard the Company's investment.
Adjusted EBITDA for the year ended December 31, 2019 was negative $3.8 million compared to $418,000 for the year ended December 31, 2018. The decrease in adjusted EBITDA for the year is primarily the result of lower revenues experienced during the year ended December 31, 2019, partially offset by lower operating expenses during 2019. Adjusted EBITDA for the three months ended December 31, 2019 was negative $1.9 million compared to negative $2.0 million for the three months ended December 31, 2018.
Net loss for the year ended December 31, 2019 was $19.8 million or $1.32 per share. This compares to net income of $3.9 million or $0.25 per share for the year ended December 31, 2018. Net loss for the three months ended December 31, 2019 was $15.5 million or $1.08 per share, compared to net income of $1.5 million or $0.10 per share for the three months ended December 31, 2018. The main factors contributing to the increase in the net loss recorded for the year ended December 31, 2019 were the impairment loss recorded on the ReDSTM license, impairment losses recorded in regards to inventories of ZYPITAMAGTM and Sodium Nitroprusside, a loss recorded upon the settlement of the holdback receivable, lower revenues and higher foreign exchange losses, partially offset by lower operating expenses.
At December 31, 2019, the Company had unrestricted cash totaling $13.0 million compared to $71.9 million of cash and short-term investments as of December 31, 2018. The decrease in cash is mainly the result of $26.1 million used to buy back common shares under the Company's substantial issuer bid, $4.1 million used to buy back shares under the Company's normal course issuer bids, the net loss incurred for fiscal 2019, the investments of US$10.0 million in Sensible, US$5.0 million to acquire the full rights to ZYPITAMAGTM and a build-up of inventory of $2.1 million during the year ended December 31, 2019. Cash flows used in operating activities for the year ended December 31, 2019 totaled $14.6 million.
All amounts referenced herein are in Canadian dollars unless otherwise noted.
(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 non-recurring items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the years ended December 31, 2019 and 2018 results prepared using IFRS, do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.
Adjusted EBITDA as previously reported for the year ended December 31, 2018 has been adjusted to conform with the current year presentation as a result of the adoption of IFRS 16. As a result of the adoption of this accounting policy, $228,000 of rental expenses has been added back to the Adjusted EBITDA calculation for the year ended December 31, 2018.
Conference Call Info:
Topic: Medicure's Fiscal Year End 2019 Results
Call date: Thursday, April 16, 2020
Time: 7:30 AM Central Time (8:30 AM Eastern Time)
Canada toll: 1 (416) 764-8659
North American toll-free: 1 (888) 664-6392
Passcode: not required
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
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.
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Forward Looking Information: Statements contained in this press release that are not statements of historical fact, including, without limitation, statements containing the words "believes", "may", "plans", "will", "estimates", "continues", "anticipates", "intends", "expects" and similar expressions, may constitute "forward-looking information" within the meaning of applicable Canadian and U.S. federal securities laws (such forward-looking information and forward-looking statements are hereinafter collectively referred to as "forward-looking statements"). Forward-looking statements, include estimates, analysis and opinions of management of the Company made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors which the Company believes to be relevant and reasonable in the circumstances. Inherent in forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to predict or control that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements, and as such, readers are cautioned not to place undue reliance on forward-looking statements. Such risk factors include, among others, the Company's future product revenues, expected future growth in revenues, stage of development, additional capital requirements, risks associated with the completion and timing of clinical trials and obtaining regulatory approval to market the Company's products, the ability to protect its intellectual property, dependence upon collaborative partners, changes in government regulation or regulatory approval processes, and rapid technological change in the industry. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about: general business and economic conditions; the impact of changes in Canadian-US dollar and other foreign exchange rates on the Company's revenues, costs and results; the timing of the receipt of regulatory and governmental approvals for the Company's research and development projects; the availability of financing for the Company's commercial operations and/or research and development projects, or the availability of financing on reasonable terms; results of current and future clinical trials; the uncertainties associated with the acceptance and demand for new products and market competition. The foregoing list of important factors and assumptions is not exhaustive. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, other than as may be required by applicable legislation. Additional discussion regarding the risks and uncertainties relating to the Company and its business can be found in the Company's other filings with the applicable Canadian securities regulatory authorities or the US Securities and Exchange Commission, and in the "Risk Factors" section of its Form 20F for the year ended December 31, 2019.
AGGRASTAT® (tirofiban hydrochloride) is a registered trademark of Medicure International Inc.
Consolidated Statements of Financial Position
Consolidated Statements of Net (Loss) Income and Comprehensive (Loss) Income
Consolidated Statements of Cash Flows
SOURCE Medicure Inc.
Company Codes: OTC-PINK:MCUJF, TorontoVE:MPH