Medicure reports financial results for quarter ended September 30, 2018

WINNIPEG, /PRNewswire/ - Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a cardiovascular pharmaceutical company, today reported its results from operations for the quarter ended September 30, 2018. 

Quarter Ended September 30, 2018 Highlights:

• Recorded net revenue of $7.3 million during the quarter ended September 30, 2018 compared to $7.0 million for the quarter ended September 30, 2017;
   
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA¹) for the quarter ended September 30, 2018 was $522,000 compared to adjusted EBITDA of $1.8 million for the quarter ended September 30, 2017; and
   
• Net loss for the quarter ended September 30, 2018 was $545,000 compared to $4.3 million for the quarter ended September 30, 2017.
   
• $72.0 million in cash and short-term investments as at September 30, 2018.

Financial Results

Net revenues from AGGRASTAT^® for the three months ended September 30, 2018 and 2017 were $7.0 million for both periods.  Net revenues from AGGRASTAT^® for the nine months ended September 30, 2018 were $20.3 million compared to $22.1 million for the nine months ended September 30, 2017.  Additionally, ZYPITAMAG^TM (pitavastatin magnesium), which was launched commercially in May 2018, contributed an additional $326,000 and $932,000 of net revenue, respectively, for the three and nine months ended September 30, 2018.

The Company continues to experience an increase in patient market share and an increase in the number of new hospital customers using AGGRASTAT^®, again leading to the continued increase in hospital demand for AGGRASTAT^®. Although there was an increase in use of AGGRASTAT^®, the revenues for the three months ended September 30, 2018 remained consistent with revenues for the three months ended September 30, 2017 due to increased competitive pricing of generic Integrilin, partially offset by a weaker Canadian dollar compared to its US counterpart when comparing the two quarters.  AGGRASTAT^® revenues for the nine months ended September 30, 2018 decreased when compared to the nine months ended September 30, 2017 due to increased competitive pricing of generic Integrilin and a stronger Canadian dollar compared to its US counterpart when comparing the nine month periods.

Medicure continues to focus on expanding the customer base for AGGRASTAT^® and ZYPITAMAG^TM and diversifying the Company's revenue base.

Adjusted EBITDA for the three months ended September 30, 2018 was $522,000 compared to $1.8 million for the three months ended September 30, 2017.  Adjusted EBITDA for the nine months ended September 30, 2018 was $2.2 million compared to $5.2 million for the nine months ended September 30, 2017.

The decrease in adjusted EBITDA for the quarter is the result of:

• higher selling, general and administrative costs during the period in relation to the on-going marketing of AGGRASTAT^® and the launch of ZYPITAMAG^TM.
• higher research and development expenses when compared to the same period in 2017 as a result of timing of expenses relating to the Company's research and development projects.
• higher cost of goods sold due to higher volume of AGGRASTAT^® sold during the period.

Net loss for the three months ended September 30, 2018 was $545,000 or $0.03 per share compared to $4.3 million or $0.28 per share for the three months ended September 30, 2017. The net loss for the 2017 quarter includes a net loss of $5.9 million or $0.38 per share from discontinued operations relating to the results from the Apicore business, which was divested in 2017.  Excluding the net loss from discontinued operations, net loss for the three months ended September 30, 2018 increased from 2017 as a result of foreign exchange losses resulting from increased U.S. dollar denominated cash and short-term investment balances at quarter end, combined with a decrease in the U.S. dollar exchange rate and higher selling, general and administrative and research and development expenses for the three months ended September 30, 2018.

Net income for the nine months ended September 30, 2018 was $2.4 million or $0.15 per share compared to a net loss $8.0 million or $0.52 per share for the nine months ended September 30, 2017. The net loss for 2017 includes a net loss of $12.3 million or $0.79 per share from discontinued operations relating to the results from the Apicore business, which was divested in 2017.  Excluding the loss from discontinued operations, net income for the nine months ended September 30, 2018 decreased by $1.9 million over same period in 2017 primarily due to higher selling, general and administrative expenses, higher cost of goods sold and lower revenues for the nine months ended September 30, 2018.

As at September 30, 2018, the Company had cash and short-term investments totaling $72.0 million compared to $5.3 million as of December 31, 2017.  This consisted of $20.2 million of unrestricted cash and $51.8 million of short-term investments in the form of term deposits with maturities of greater than three months and less than one year. As at September 30, 2018, the Company had working capital of $84.3 million compared to $70.9 million at December 31, 2017. The Company had cash from operating activities of $3.0 million for the nine months ended September 30, 2018.

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 September 30, 2018 and 2017 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.

Conference Call Info:

Topic:  Medicure's Q3 2018 Results

Call date:  Wednesday, November 21, 2018

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:  8782841#

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: https://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

Medicure is a pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. cardiovascular market. The present focus of the Company is the marketing and distribution of AGGRASTAT^® (tirofiban hydrochloride) injection and ZYPITAMAG^TM (pitavastatin magnesium) tablets in the United States, where they are sold through the Company's U.S. subsidiary, Medicure Pharma, Inc. For more information on Medicure please visit www.medicure.com.

To be added to Medicure's e-mail list, please visit: 
http://medicure.mediaroom.com/alerts

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 the target launch date for new products, the estimated number of products the Company will be selling in the future, 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, 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, 2017.

AGGRASTAT® (tirofiban hydrochloride) is a registered trademark of Medicure International Inc.

Condensed Consolidated Interim Statements of Financial Position
(expressed in Canadian dollars)
(unaudited)

Condensed Consolidated Interim Statements of Net Income (loss) and Comprehensive Income (loss)
(expressed in Canadian dollars)
(unaudited)

Condensed Consolidated Interim Statements of Cash Flows
(expressed in Canadian dollars)
(unaudited)

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SOURCE Medicure Inc.