WINNIPEG, MB, April 27, 2022 /CNW/ - 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,
2021.
Quarter and Year Ended December 31,
2021 Highlights:
- Recorded total net revenue of $21.7
million during the year ended December 31, 2021 compared to $11.6 million for the year ended December 31, 2020 and;
- Recorded total net revenue of $6.8
million during the quarter ended December 31, 2021 compared to $2.4 million for the quarter ended December 31, 2020 and;
- Recorded total net revenue from the sale of
AGGRASTAT® of $11.5
million during the year ended December 31, 2021 compared to $10.6 million for the year ended December 31, 2020 and;
- Recorded total net revenue from the sale of
ZYPITAMAG® of $3.1 million
during the year ended December 31,
2021 compared to $453,000 for
the year ended December 31, 2020
and;
- Diversified product portfolio with revenues from the Marley
Drug business of $6.9 million during
the year ended December 31, 2021
and;
- Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA1) for the year ended December 31, 2021 was $2.1
million compared to adjusted EBITDA of negative $3.9 million for the year ended December 31, 2020 and;
- Net loss for the year ended December 31,
2021 was $727,000 compared to
$6.8 million for the year ended
December 31, 2020;
Financial Results
The increase in AGGRASTAT® revenues when compared to
the same periods in the previous year, as described above, is the
result of increases in the volume of AGGRASTAT® sold in
2021 when compared to 2020, in conjunction to improvements in
contract price management.
ZYPITAMAG® contributed $3.1
million of revenue for the year ended December 31, 2021 compared to $453,000 for the year ended December 31, 2020. The increase in revenue is
primarily as a result of improved patient access and fill rate
through Medicure's subsidiary Marley Drug, which also results in
reduced fees to wholesalers and pharmacy benefit managers.
The Marley Drug business, acquired on December 17, 2020, contributed $6.9 million of revenue for the year ended
December 31, 2021. Marley Drug is a
US pharmacy licensed to ship medications to all 50 states,
Washington D.C. and Puerto Rico. It serves thousands of customers
and has proven success in marketing based on accessible pricing of
generic drugs and a focus on cash price without use of insurance.
It provides another channel for direct-to-consumer marketing,
distribution and improved profit margin for ZYPITAMAG.
Sodium nitroprusside contributed $59,000 of revenue during the year ended
December 31, 2021 compared to
$116,000 of revenue during the year
ended December 31, 2020 which is
lower primarily as a result of pricing pressure from
competitors.
Adjusted EBITDA for the three months ended December 31, 2021 was $1.6
million compared to negative $1.4
million for the three months ended December 31, 2020. The increase in adjusted
EBITDA for the three months ended December
31, 2021 is the result of higher revenues when compared to
the same period in 2020 despite increases in cost of goods and
selling expenses.
Adjusted EBITDA for the year ended December 31, 2021 was $2.1
million compared to negative $3.9
million for the year ended December
31, 2020. Increased adjusted EBITDA for the year ended
December 31, 2021 resulted from
higher revenues of ZYPITAMAG, including a full year of operations
of Marley Drug, reduced general and administrative and research and
development expenses, partially offset by higher cost of goods sold
and selling expenses as a result of the full year of Marley Drug
operation.
During the year ended December 31,
2021, the Company recorded $402,000 in government assistance resulting from
the Canada Emergency Wage
Subsidy. The funding has been recorded as a reduction of the
related salary expenditures within general and administrative
expenses for the year ended December 31,
2021.
Net income for the three months ended December 31, 2021 was $1.9
million or $0.18 per share
compared to net loss of $4.4 million
or $0.41 per share for the three
months ended December 31, 2020. The
main factors contributing to the increase in net income recorded
for the three months ended December 31,
2021 were a $1.8 million gain based on the year-end
fair value assessment of the contingent consideration recorded in
the prior year in relation to the acquisition of Marley Drug,
higher revenues of ZYPITAMAG, including a full year of operations
of Marley Drug, and reduced general and administrative and research
and development expenses, partially offset by a $1.3 million inventory write down, higher cost of
goods sold and selling expenses as a result of the full year of
Marley Drug operation.
Net loss for the year ended December 31,
2021 was $710,000 or
$0.07 per share compared to
$6.8 million or $0.64 per share for the year ended December 31, 2020. The main factors contributing
to the decrease in the net loss recorded for the year ended
December 31, 2021 were a $1.8 million gain based on the year-end the fair
value assessment of the contingent consideration recorded in the
prior in relation to the acquisition of Marley Drug, a
$491,000 recovery from PREXXARTAN,
higher revenues of ZYPITAMAG, including a full year of operations
of Marley Drug, and reduced general and administrative and research
and development expenses, partially offset by a $1.3 million inventory write down, higher cost of
goods sold and selling expenses as a result of the full year of
Marley Drug operation.
At December 31, 2021, the Company
had unrestricted cash totaling $3.7
million, up from $2.7 million
of unrestricted cash held as of December 31,
2020. Cash flows from operating activities for the year
ended December 31, 2021 totaled
$3.9 million compared to $2.2 million used in operating activities for the
year ended December 31, 2020.
All amounts referenced herein are in Canadian dollars unless
otherwise noted.
The Company plans to hold an investor conference call in
May 2022 to present the results for
the three months ended March 31, 2022
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.
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 non-recurring items". The terms
"EBITDA" and "Adjusted EBITDA", as it relates to the three months
and year ended December 31, 2021 and 2020 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.
|
About Medicure Inc.
Medicure is a pharmaceutical company focused on the development
and commercialization of therapies for the U.S. cardiovascular
market. The present focus of the Company is the marketing and
distribution of AGGRASTAT® (tirofiban hydrochloride)
injection and ZYPITAMAG® (pitavastatin) tablets in
the United States, where they are
sold through the Company's U.S. subsidiary, Medicure Pharma Inc.
Medicure also operates Marley Drug, Inc. ("Marley Drug"), a
pharmacy located in North Carolina
that offers an Extended Supply drug program serving all 50 states,
Washington D.C. and Puerto Rico. Marley Drug® is
committed to improving the health status of its patients and the
communities they serve while reducing overall health care costs for
employers and other health care consumers. For more information
visit www.marleydrug.com. To learn more about The Extended Supply
Generic Drug Program call 800.286.6781 or email
info@marleydrug.com. For more information on Medicure please
visit www.medicure.com. For additional information about
AGGRASTAT®, refer to the full Prescribing Information.
For additional information about ZYPITAMAG®, refer to
the full Prescribing Information.
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 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, 2021.
AGGRASTAT® (tirofiban hydrochloride) injection,
ZYPITAMAG® (pitavastatin) tablets, and Marley
Drug® are registered trademarks of Medicure
International Inc.
Consolidated Statements of Financial
Position
(expressed in thousands of Canadian dollars,
except per share amounts)
|
As at December
31
|
2021
|
2020
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
3,694
|
$
2,716
|
|
Restricted
cash
|
3
|
1,394
|
|
Accounts
receivable
|
4,659
|
5,253
|
|
Inventories
|
3,329
|
5,139
|
|
Prepaid
expenses
|
869
|
1,174
|
|
Total current
assets
|
12,554
|
15,676
|
|
Non–current
assets:
|
|
|
|
Property and
equipment
|
1,611
|
1,640
|
|
Intangible
assets
|
11,212
|
13,596
|
|
Goodwill
|
2,974
|
2,986
|
|
Other
assets
|
57
|
156
|
|
Total non–current
assets
|
15,854
|
18,378
|
|
Total
assets
|
$
28,408
|
$
34,054
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
6,668
|
$
6,979
|
|
Current portion of
royalty obligation
|
423
|
362
|
|
Current portion of
acquisition payable
|
634
|
637
|
|
Holdback
payable
|
-
|
1,876
|
|
Current portion of
contingent consideration
|
293
|
1,925
|
|
Current income taxes
payable
|
114
|
164
|
|
Current portion of
lease obligation
|
380
|
367
|
|
Total current
liabilities
|
8,512
|
12,310
|
|
Non–current
liabilities
|
|
|
|
Royalty
obligation
|
65
|
335
|
|
Acquisition
payable
|
591
|
1,132
|
|
Contingent
consideration
|
40
|
51
|
|
Lease
obligation
|
789
|
1,080
|
|
Total non–current
liabilities
|
1,485
|
2,598
|
|
Total
liabilities
|
9,997
|
14,908
|
|
Equity:
|
|
|
|
Share
capital
|
80,917
|
80,917
|
|
Contributed
surplus
|
10,429
|
10,294
|
|
Accumulated other
comprehensive loss
|
(6,640)
|
(6,497)
|
|
Deficit
|
(66,295)
|
(65,568)
|
|
Total
Equity
|
18,411
|
19,146
|
|
Total liabilities
and equity
|
$
28,408
|
$
34,054
|
|
|
|
Consolidated Statements of Net (Loss) Income and
Comprehensive (Loss) Income
(expressed in thousands of
Canadian dollars, except per share amounts)
|
For the year ended
December 31
|
2021
|
2020
|
2019
|
|
Revenue,
net
|
|
|
|
|
Product sales,
net
|
$
21,744
|
$
11,610
|
$
20,173
|
|
Cost of goods
sold
|
9,032
|
6,480
|
7,272
|
|
Gross
profit
|
12,712
|
5,130
|
12,901
|
|
|
|
|
|
Expenses
|
|
|
|
|
Selling
|
10,312
|
5,359
|
13,399
|
|
General and
administrative
|
2,697
|
4,579
|
3,395
|
|
Research and
development
|
1,796
|
3,299
|
4,349
|
|
14,805
|
13,237
|
21,143
|
|
|
|
|
|
Other expense
(income):
|
|
|
|
|
Other
Income
|
(1,828)
|
|
|
|
Revaluation of
holdback
|
-
|
-
|
3,623
|
|
Impairment loss on
intangible assets
|
-
|
-
|
6,321
|
|
(1,828)
|
-
|
9,944
|
|
Finance (income)
costs:
|
|
|
|
|
Finance (income)
expense, net
|
525
|
(765)
|
(1,115)
|
|
Foreign exchange
(gain) loss, net
|
(31)
|
(497)
|
2,570
|
|
494
|
(1,262)
|
1,455
|
|
Net loss before
income taxes
|
$
(759)
|
$
(6,845)
|
$
(19,641)
|
|
Income tax recovery
(expense)
|
|
|
|
|
Current
|
32
|
-
|
(22)
|
|
Deferred
|
-
|
-
|
(123)
|
|
32
|
-
|
(145)
|
|
Net
loss
|
$
(727)
|
$
(6,845)
|
$
(19,786)
|
|
Item that may be
reclassified to profit or loss
|
|
|
|
|
Exchange differences
on translation of foreign subsidiaries:
|
(143)
|
(746)
|
(683)
|
|
|
|
|
|
Item that will not be
reclassified to profit and loss
|
|
|
|
|
Revaluation of
investment in Sensible Medical at FVOCI
|
-
|
-
|
(6,336)
|
|
Comprehensive
loss
|
$
(870)
|
$
(7,591)
|
$
(26,805)
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
Basic
|
$
(0.07)
|
$
(0.64)
|
$
(1.32)
|
|
Diluted
|
$
(0.07)
|
$
(0.64)
|
$
(1.32)
|
|
|
|
|
|
Consolidated Statements of Cash Flows
(expressed in
thousands of Canadian dollars, except per share amounts)
|
For the year ended
December 31
|
2021
|
2020
|
2019
|
|
Cash (used in)
provided by:
|
|
|
|
|
Operating
activities:
|
|
|
|
|
Net (loss) income for
the year
|
$
(727)
|
$
(6,845)
|
$
(19,786)
|
|
Adjustments
for:
|
|
|
|
|
Current income tax
expense (recovery)
|
(32)
|
-
|
22
|
|
Deferred income tax
expense (recovery)
|
-
|
-
|
123
|
|
Impairment of property
and equipment
|
-
|
-
|
95
|
|
Impairment of
intangible assets
|
-
|
-
|
6,321
|
|
Revaluation of
holdback receivable
|
-
|
-
|
3,623
|
|
Amortization of
property and equipment
|
406
|
307
|
485
|
|
Amortization of
intangible assets
|
2,739
|
2,466
|
1,438
|
|
Share–based
compensation
|
135
|
317
|
417
|
|
Write-down of
inventories
|
1,339
|
682
|
1,983
|
|
Change in fair value
of contingent consideration
|
(1,803)
|
|
|
|
Finance (income)
expense, net
|
525
|
(765)
|
(1,115)
|
|
Unrealized foreign
exchange (gain) loss
|
(31)
|
(497)
|
362
|
|
Change in the
following:
|
|
|
|
|
Accounts
receivable
|
593
|
5,081
|
(318)
|
|
Inventories
|
471
|
723
|
(4,072)
|
|
Prepaid
expenses
|
305
|
703
|
842
|
|
Other
assets
|
99
|
-
|
78
|
|
Accounts payable and
accrued liabilities
|
20
|
(3,802)
|
(4,992)
|
|
Interest received
(paid), net
|
49
|
22
|
1,685
|
|
Income taxes
paid
|
-
|
(306)
|
(477)
|
|
Royalties
paid
|
(99)
|
(326)
|
(1,355)
|
|
Cash flows (used
in) from operating activities
|
3,989
|
(2,240)
|
(14,641)
|
|
Investing
activities:
|
|
|
|
|
Acquisition of Marley
Drug, Inc, net of cash acquired
|
-
|
(7,238)
|
-
|
|
Investment in Sensible
Medical
|
-
|
-
|
(6,337)
|
|
Receipt of holdback
receivable funds
|
-
|
-
|
6,719
|
|
Redemptions (purchase)
of short-term investments
|
-
|
-
|
47,747
|
|
Repayment of holdback
payable
|
(1,876)
|
|
|
|
Acquisition of
property and equipment
|
(377)
|
(2)
|
(186)
|
|
Acquisition of
intangible assets
|
(441)
|
-
|
(13,660)
|
|
Cash flows from
investing activities
|
(2,694)
|
(7,240)
|
34,283
|
|
Financing
activities:
|
|
|
|
|
Repurchase of common
shares under
substantial
issuer bid
|
-
|
-
|
(26,139)
|
|
Repurchase of common
shares under normal
course issuer
bid
|
-
|
(522)
|
(4,145)
|
|
Proceeds from exercise
of stock options
|
-
|
-
|
20
|
|
Repayment of lease
liability
|
(316)
|
(244)
|
-
|
|
Cash flows used in
financing activities
|
(316)
|
(766)
|
(30,264)
|
|
Foreign exchange
(loss) gain on cash held in
foreign
currency
|
(1)
|
(3)
|
(552)
|
|
(Decrease) increase in
cash
|
978
|
(10,249)
|
(11,174)
|
|
Cash and cash
equivalents, beginning of period
|
2,716
|
12,965
|
24,139
|
|
Cash and cash
equivalents, end of period
|
$
3,694
|
$
2,716
|
$
12,965
|
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SOURCE Medicure Inc.