Medicure Reports Financial Results for Quarter and Year Ended December 31, 2020
Conference call to be held in connection with the Company's Q1 2021 results to be released in May 2021
WINNIPEG, MB, April 20, 2021 /PRNewswire/ - Medicure Inc. ("Medicure" or the "Company") (TSXV: MPH) (OTC: MCUJF), a company focused on the development and commercialization of pharmaceuticals and healthcare products for patients and prescribers in the United States market, today reported its results from operations for the quarter and year ended December 31, 2020.
Quarter and Year Ended December 31, 2020 Highlights:
The decrease in AGGRASTAT® revenues when compared to the same periods in the previous year, as described above, is the result of decreases in the volume of AGGRASTAT® sold in 2020 when compared to 2019, due mainly to fewer procedures being performed as a result of the COVID-19 pandemic and a decline in the overall use of the drug class. In addition, the Company continues to experience pricing pressures from competitors which contributed to the decline in revenue from AGGRASTAT®.
ZYPITAMAG® contributed $453,000 of revenue for the year ended December 31, 2020 compared to $183,000 for the year ended December 31, 2019. With the acquisition of the Marley Drug business in December of 2020, including direct to patient marketing, and improved insurance coverage experienced during 2020, the Company has seen some growth in interest in ZYPITAMAG® during 2020. COVID-19 has provided some challenges with physician access, however, the Company continues to pursue innovative marketing strategies to grow the usage of the product.
The Marley Drug business, acquired on December 17, 2020, contributed $340,000 of revenue to the Company for the period beginning on December 17, 2020. Marley provides excellent customer service, cost competitive medications, expedited direct to patient delivery, and is licensed in 49 states, Washington D.C. and Puerto Rico. Its advanced operating systems include automated pill dispensing, an extended supply generic drug program, and an effective customer communication system. Marley has been successful in marketing directly to customers, providing access to medications without the need for insurance, and building a nationwide customer base.
Additionally, sodium nitroprusside (SNP), which was first sold commercially during 2020, contributed $116,000 of revenue during the year ended December 31, 2020. The Company also earned $95,000 of revenue from ReDSTM during the year ended December 31, 2020 compared to $618,000 for the year ended December 31, 2019.
Adjusted EBITDA for the three months ended December 31, 2020 was negative $2.9 million compared to negative $1.9 million for the three months ended December 31, 2019. The decrease in adjusted EBITDA for the three months ended December 31, 2020 is the result of lower revenues when compared to the same period in 2019 and higher general and administrative expenses as a result of increased legal expenses resulting from the patent challenge litigation which was settled during the three months ended December 31, 2020.
Adjusted EBITDA for the year ended December 31, 2020 was negative $3.9 million consistent with negative $3.8 million for the year ended December 31, 2019. Adjusted EBITDA for the year ended December 31, 2020 resulted from lower revenues, however this revenue decline was offset by lower selling and research and development expenses when compared to 2019.
During the year ended December 31, 2020, the Company recorded $860,000 in government assistance resulting from the Canada Emergency Wage Subsidy. The funding has been recorded as a reduction of the related salary expenditures with $595,000 recorded within selling expenses, $159,000 recorded within general and administrative expenses and $106,000 recorded within research and development expenses.
Net loss for the three months ended December 31, 2020 was $4.4 million or $0.41 per share compared to net loss of $15.5 million or $1.08 per share for the three months ended December 31, 2019. The main factors contributing to the decrease in the net loss recorded for the three months ended December 31, 2020 were the impairment loss recorded on the ReDSTM license, and a loss recorded upon the settlement of the holdback receivable during the three months ended December 31, 2019, partially offset by lower revenue experienced during the three months ended December 31, 2020.
Net loss for the year ended December 31, 2020 was $6.8 million or $0.64 per share compared to $19.8 million or $1.32 per share for the year ended December 31, 2019. The main factors contributing to the decrease in the net loss recorded for the year ended December 31, 2020 were the impairment loss recorded on the ReDSTM license, and a loss recorded upon the settlement of the holdback receivable during 2019, partially offset by lower revenue experienced during the year ended December 31, 2020.
At December 31, 2020, the Company had unrestricted cash totaling $2.7 million, down from the $13.0 million of unrestricted cash held as of December 31, 2019, primarily due to cash used in the acquisition of Marley Drug. The Company is in the process of obtaining debt financing from a commercial bank to replenish its cash balance. Cash flows used in operating activities for the year ended December 31, 2020 totaled $2.2 million compared to $14.6 million for the year ended December 31, 2019.
All amounts referenced herein are in Canadian dollars unless otherwise noted.
The Company plans to hold an investor conference call in early May 2021 to present the results for the year ended December 31, 2020 and the three months ended March 31, 2021 with date and dial in information to be provided. The full financial statements are available at www.sedar.com and on the Company's website at www.medicure.com.
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 results, including future revenue from P5P, the likelihood of receiving a PRV, 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, 2020.
AGGRASTAT® (tirofiban hydrochloride) injection and ZYPITAMAG® (pitavastatin) tablets are registered trademarks 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