MEDICURE REPORTS FINANCIAL RESULTS FOR QUARTER ENDED JUNE 30, 2023

July 28, 2023

WINNIPEG, CANADA – (July 28, 2023) 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 ended June 30, 2023.

Quarter Ended June 30, 2023 Highlights:

• Recorded total net revenue of $6.0 million during the quarter ended June 30, 2023 compared to $5.7 million for the quarter ended June 30, 2022 and;
• Recorded total net revenue from the sale of AGGRASTAT^® of $2.6 million during the quarter ended June 30, 2023 compared to $2.9 million for the quarter ended June 30, 2022 and;
• Recorded total net revenue from the sale of ZYPITAMAG^® of $1.4 million ($722,000 from insured business and $678,000 through Marley Drug) during the quarter ended June 30, 2023 compared to $1.7 million ($1.4 million from insured business and $300,000 through Marley Drug) for the quarter ended June 30, 2022 and;
• Recorded total net revenue from the Marley Drug business of $2.7 million during the quarter ended June 30, 2023 compared to $1.8 million for the quarter ended June 30, 2022 and;
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA¹) for the quarter ended June 30, 2023 was $948,000 compared to adjusted EBITDA of negative $210,000 for the quarter ended June 30, 2022 and;
• Net income for the quarter ended June 30, 2023 was $253,000 or $0.02 per share compared to net loss of $683,000 or $0.06 per share for the quarter ended June 30, 2022.

Financial Results

The modest decrease in AGGRASTAT^® revenues when compared to the same period in the previous year, as described above, is the result of a decrease in the volume of AGGRASTAT^® sold in 2023 when compared to 2022, in conjunction with an increase in wholesaler fees.

ZYPITAMAG^® contributed $722,000 of revenue for the quarter ended June 30, 2023 compared to $1.1 million for the quarter ended June 30, 2022. The decrease in revenue through insured channels is primarily as a result of increased fees to wholesalers and pharmacy benefit managers. This amount does not include sales of ZYPITAMAG through the Marley Drug business.

The Marley Drug business contributed $2.7 million of revenue for the quarter ended June 30, 2023 compared to $1.8 million for the quarter ended June 30, 2022. 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 provides another channel for direct-to-consumer marketing, distribution and improved profit margin for ZYPITAMAG. The increase in revenue is a result of increased sales through its e-commerce platform, including increased sales of ZYPITAMAG.

Adjusted EBITDA for the quarter ended June 30, 2023 was $948,000 compared to negative $210,000 for the quarter ended June 30, 2022. Increased adjusted EBITDA for the quarter ended June 30, 2023 resulted from increased Marley Drug revenue and reduced research and development expenses, offset by lower revenues from the product sales of AGGRASTAT and ZYPITAMAG through insured channels.

Net income for the quarter ended June 30, 2023 was $253,000 or $0.02 per share compared to net loss of $683,000 or $0.06 per share for the quarter ended June 30, 2022. The main factors contributing to the increase in net income recorded for the quarter ended June 30, 2023 were increased Marley Drug revenue and reduced research and development expenses, offset by lower revenues from the product sales of AGGRASTAT and ZYPITAMAG through insured channels.

At June 30, 2023, the Company had unrestricted cash totaling $5.4 million, an increase from $4.9 million of unrestricted cash held as of December 31, 2022. Cash flows from operating activities for the quarter ended June 30, 2023 was $766,000 compared to cash flows from operating activities of $1.4 million for the period ended June 30, 2022.

All amounts referenced herein are in Canadian dollars unless otherwise noted.

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, 2022 and 2021 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.

Conference Call Info:

Topic: Medicure's Q2 2023 Results

Call date: Monday, July 31, 2023

Time: 7:30 AM Central Time (8:30 AM Eastern Time)

Toll Free: 1 (888) 506-0062

International: 1 (973) 528-0011

Participant Access Code: 599508

Webcast: This conference call will be webcast live over the internet at the following link: www.webcaster4.com/Webcast/Page/2965/48792

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.

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^®, please visit www.aggrastathdb.com or refer to the full Prescribing Information. For additional information about ZYPITAMAG^®, please visit www.zypitamag.com or refer to the full Prescribing Information.

To receive investor and business updates from Medicure, please fill out this form click here to be added to Medicure's e-mail list.

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 priority review voucher from the United State Food and Drug Administration, 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 current Form 20F.

AGGRASTAT^® (tirofiban hydrochloride) injection, ZYPITAMAG^® (pitavastatin) tablets, and Marley Drug^® are registered trademarks.

For more information, please contact:

Dr. Albert D. Friesen

Chief Executive Officer

Tel. 888-435-2220

Fax 204-488-9823

E-mail: info@medicure.com

www.medicure.com

 

Condensed Consolidated Interim Statements of Financial Position

(expressed in thousands of Canadian dollars, except per share amounts)

	June 30, 2023	December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$ 5,445	$ 4,857
Accounts receivable	5,959	5,635
Inventories	3,258	3,221
Prepaid expenses	867	1,134
Total current assets	15,529	14,847
Non-current assets:
Property and equipment	950	1,187
Intangible assets	9,561	10,624
Goodwill	3,105	3,177
Other assets	62	63
Total non-current assets	13,678	15,051
Total assets	$ 29,207	$ 29,898
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$ 6,600	$ 7,128
Current portion of royalty obligation	-	179
Current portion of acquisition payable	662	677
Current income taxes payable	6	60
Current portion of lease obligation	349	346
Total current liabilities	7,617	8,390
Non-current liabilities
Lease obligation	345	503
Total non-current liabilities	345	503
Total liabilities	7,962	8,893
Equity:
Share capital	81,014	80,917
Contributed surplus	10,565	10,476
Accumulated other comprehensive income	(5,946)	(5,458)
Deficit	(64,388)	(64,930)
Total Equity	21,245	21,005
Total liabilities and equity	$ 29,207	$ 29,898

 

Condensed Consolidated Interim Statements of Net Income and Comprehensive Income

(expressed in thousands of Canadian dollars, except per share amounts)

	Three months ended June 30, 2023	Three months ended June 30, 2022	Six months ended June 30, 2023	Six months ended June 30, 2022
Revenue, net	$ 5,993	$ 5,747	$ 11,621	$ 11,463
Cost of goods sold	1,805	1,952	3,637	3,643
Gross profit	4,188	3,795	7,984	7,820
Expenses
Selling	2,068	1,674	4,106	3,366
General and administrative	1,125	1,561	2,032	2,873
Research and development	668	1,324	1,194	1,669
	3,861	4,559	7,332	7,908
Finance (income) costs:
Finance (income) expense, net	(22)	38	(17)	57
Foreign exchange (gain) loss, net	30	(98)	54	35
	8	(60)	37	92
Net income (loss) before income taxes	$ 319	$ (704)	$ 616	$ (180)
Income tax (recovery) expense
Current	66	(21)	73	21
Net income (loss)	$ 253	$ (683)	$ 542	$ (201)
Other comprehensive income (loss):
Item that may be reclassified to profit or loss
Exchange differences on translation of foreign subsidiaries	(463)	499	(488)	330
Other comprehensive income (loss), net of tax	(463)	499	(488)	330
Comprehensive income (loss)	$ (210)	$ (184)	$ 54	$ 129
Earnings (loss) per share
Basic	$ 0.02	$ (0.06)	$ 0.05	$ (0.02)
Diluted	$ 0.02	$ (0.06)	$ 0.05	$ (0.02)

Condensed Consolidated Interim Statements of Cash Flows

(expressed in thousands of Canadian dollars, except per share amounts)

For the six months ended June 30	2023	2022
Cash (used in) provided by:
Operating activities:
Net loss for the period	$ 542	$ (201)
Adjustments for:
Amortization of property, plant and equipment	224	228
Amortization of intangible assets	866	763
Share-based compensation	130	44
Finance income, net	(17)	57
Unrealized foreign exchange (gain) loss	54	35
Income tax expense	66	-
Change in the following:
Accounts receivable	(138)	(1,201)
Inventories	(65)	249
Prepaid expenses	(174)	98
Accounts payable and accrued liabilities	(498)	1,759
Other assets	-	28
Interest received (paid), net	-	10
Income taxes paid	(105)
Royalties paid	(119)	(419)
Cash flows from (used in) operating activities	766	1,450
Investing activities:
Acquisition of intangible assets	(27)	(160)
Cash flows used in investing activities	(27)	(160)
Financing activities:
Repayment of lease liability	(151)	(153)
Cash flows used in financing activities	(151)	(153)
Foreign exchange gain on cash held in foreign currency	-	-
Increase in cash and cash equivalents	588	1,137
Cash and cash equivalents, beginning of period	4,857	3,694
Cash and cash equivalents, end of period	$ 5,445	$ 4,831

 

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