Medicure Reports Financial Results for the First Quarter of 2015

April 29, 2015

WINNIPEG, April 29, 2015 /CNW/ - Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a specialty pharmaceutical company, today reported its results from operations for the first quarter ended March 31, 2015.

Quarter One Highlights:

• Recorded net revenue of $3.3 million during the quarter ended March 31, 2015, an increase of 104% compared to $1.6 million for the quarter ended February 28, 2014 and an increase of 101% compared to $1.7 million for the three months ended March 31, 2014;
  
• Earnings before interest, taxes, depreciation and amortization (EBITDA)¹ adjusted for share-based compensation for the first quarter ended March 31, 2015 was $1.1 million compared to $638,000 for the quarter ended February 28, 2014;

 

In December of 2014, the Company announced a change in its financial year-end from May 31 to December 31. As a result of the change in year-end, results for the current quarter ending on March 31, 2015 are compared to the closest comparable fiscal period, which is the quarter ending on February 28, 2014.

Financial Results

Net revenue from the sale of AGGRASTAT finished product for the first quarter of 2015 was $3.3 million compared to $1.6 million for the quarter ended February 28, 2014 and compared to estimated revenue of $1.7 million for the three months ended March 31, 2014.

The increase in revenue compared to the comparable quarter for the previous year is primarily attributable to an increase in the number of new hospital customers using AGGRASTAT and the increase in market share held by the product. Revenue growth was also aided by favourable fluctuations in the U.S. dollar exchange rate throughout the first quarter.

The Company's commercial team continues to work on further expanding its customer base and the Company expects sales of AGGRASTAT to continue to increase over the coming quarters.

EBITDA for the quarter ended March 31, 2015 after adjusting for $423,000 of share-based compensation, a non-cash expense item, was $1.1 million. The increase in adjusted EBITDA was 67% compared to EBITDA of $638,000 for the quarter ended February 28, 2014. There was no similar stock-based compensation expense included in the EBITDA for the quarter ended February 28, 2014. EBITDA not adjusted for share-based compensation was $643,000 for the quarter ended March 31, 2015.

Net income for the quarter ended March 31, 2015 was $100,000 or $0.01 per share, compared to $86,000, also $0.01 per share, for the quarter ended February 28, 2014. Net income increased as a result of increased revenue from the sale of AGGRASTAT during the quarter, offset by increased selling, general and administration expenses and increased research and development expenses. The increase in selling, general and administration expenses is primarily due to expansion of the Company's organization supporting sales of AGGRASTAT and due to $423,000 of non-cash share-based compensation. Research and development expenses increased as a result of expenditures on the SAVI-PCI clinical trial and transdermal projects.

At March 31, 2015, the Company had cash totaling $1.3 million compared to $494,000 as of December 31, 2014 and compared to $45,000 as of February 28, 2014. The increase in cash is primarily due to higher net income after adjusting for non-cash items for the three months ended March 31, 2015.

Cash flows from operating activities for the three months ended March 31, 2015 were $789,000 compared to $35,000 for the three months ended February 28, 2014, and $276,000 for the seven-month fiscal year ended December 31, 2014.

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

Reminder for the Conference Call Tomorrow

Conference call details are as follows:

Topic: Medicure's Q1 Results Call
Date: Thursday, April 30, 2015
Time: 8:00 am, Central Time (9:00 am, Eastern Time)
Canada Toll Free: 1 (866) 215-5508
U.S. Toll Free: 1 (877) 691-2551
Passcode: 39563444

You may request country specific international access info by emailing us in advance at info@medicure.com.

Management will accept and answer questions related to the financial results and its operations during the Q&A period at the end of the conference call. A recording of the call will be available following the event at www.medicure.com.

About Medicure Inc.

Medicure is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. hospital market. The primary focus of the Company and its subsidiaries is the marketing and distribution of AGGRASTAT (tirofiban HCl) for non-ST elevation acute coronary syndrome in the United States, where it is sold through the Company's U.S. subsidiary, Medicure Pharma, Inc. For more information on Medicure please visit www.medicure.com.

About AGGRASTAT

Indications and Usage
AGGRASTAT is indicated to reduce the rate of thrombotic cardiovascular events (combined endpoint of death, myocardial infarction, or refractory ischemia/repeat cardiac procedure) in patients with non-ST elevation acute coronary syndrome (NSTE-ACS).

Dosage and Administration
Administer intravenously 25 mcg/kg within 5 minutes and then 0.15 mcg/kg/min for up to 18 hours. In patients with creatinine clearance ≤60 mL/min, give 25 mcg/kg within 5 minutes and then 0.075 mcg/kg/min.

Warnings and Precautions
Bleeding is the most common complication encountered during therapy with AGGRASTAT. Most bleeding associated with AGGRASTAT occurs at the arterial access site for cardiac catheterization. Minimize the use of traumatic or potentially traumatic procedures such arterial and venous punctures, intramuscular injections, nasotracheal intubation, etc. Fatal bleeding events have been reported. Concomitant use of fibrinolytics, oral anticoagulants and antiplatelet drugs increases the risk of bleeding.

Profound thrombocytopenia has been reported with AGGRASTAT. Monitor platelet counts beginning about 6 hours after treatment initiation and daily thereafter. If the platelet count decreases to <90,000/mm³, monitor platelet counts to exclude pseudothrombocytopenia. If thrombocytopenia is confirmed, discontinue AGGRASTAT and heparin. Previous exposure to a glycoprotein (GP) IIb/IIIa receptor antagonist may increase the risk of developing thrombocytopenia.

Please refer to Full Prescribing Information.

Notes

⁽¹⁾ The Company defines EBITDA as "earnings before interest, taxes, depreciation, amortization and other income or expense". The term "EBITDA", as it relates to the three months ended March 31, 2015 and February 28, 2014 results prepared using International Financial Reporting Standards ("IFRS"), does not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

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

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, including the expectation of continued revenue growth, are based on the current assumptions, 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 seven months ended December 31, 2014.

MEDICURE INC.
Condensed Consolidated Interim Statements of Financial Position
(expressed in Canadian dollars)
Unaudited
		March 31, 2015		December 31, 2014
Assets
Current assets:
	Cash	$	1,261,752	$	493,869
	Accounts receivable	1,944,862		1,637,676
	Inventories	1,203,824		1,099,576
	Prepaid expenses	669,983		642,976
	Total current assets	5,080,421		3,874,097
Nonâ€'current assets:
	Property and equipment	63,237		33,161
	Intangible assets	1,034,333		1,096,946
	Investment in Apicore	1,455,897		1,361,824
	Longâ€'term derivative	126,767		194,491
	Total nonâ€'current assets	2,680,234		2,686,422
Total assets		$	7,760,655	$	6,560,519
Liabilities and Deficiency
Current liabilities:
	Accounts payable and accrued liabilities	$	3,389,069	$	3,700,326
	Accrued interest on longâ€'term debt	22,295		22,295
	Current portion of longâ€'term debt	1,057,511		654,877
	Total current liabilities	4,468,875		4,377,498
Nonâ€'current liabilities
	Longâ€'term debt	3,837,726		4,225,949
	Royalty obligation	1,824,763		1,715,310
	Other longâ€'term liability	160,417		152,778
	Total nonâ€'current liabilities	5,822,906		6,094,037
Total liabilities		10,291,781		10,471,535
Deficiency:
	Share capital	117,669,792		117,045,763
	Contributed surplus	5,783,464		5,360,748
	Accumulated other comprehensive income	531,323		298,329
	Deficit	(126,515,705)		(126,615,856)
	Total deficiency	(2,531,126)		(3,911,016)
Going concern
Commitments and contingencies
Total liabilities and deficiency		$	7,760,655	$	6,560,519

 

 

MEDICURE INC.
Condensed Consolidated Interim Statements of Net Income and Comprehensive Income
(expressed in Canadian dollars)
Unaudited
		Three months		Three months
		ended		ended
		March 31, 2015		February 28, 2014
Revenue:
	Product sales, net	$	3,338,156	$	1,639,662
Cost of goods sold		392,663		250,278
Gross Profit		2,945,493		1,389,384
Expenses:
	Selling, general and administrative	2,072,365		726,056
	Research and development	392,818		167,716
		2,465,183		893,772
Operating income		480,310		495,612
Other expense:
	Revaluation of Apicore purchase option	67,724		-
	Loss on settlement of debt	60,595		-
Finance costs (income):
	Finance income	(42)		(8)
	Finance expense	215,818		398,649
	Foreign exchange (gain) loss, net	36,064		10,551
		251,840		409,192
Net income		$	100,151	$	86,420
Translation adjustment		232,994		90,662
Comprehensive income		$	333,145	$	177,082
Basic earnings per share		$	0.01	$	0.01
Diluted earnings per share		$	0.01	$	0.01
Weighted average number of common shares used in computing basic earnings per share		12,411,902		12,196,508
Weighted average number of common shares used in computing fully diluted earnings per share		14,286,271		12,714,839

 

 

MEDICURE INC.
Condensed Consolidated Interim Statements of Changes in Deficiency
(expressed in Canadian dollars)
Unaudited
						Cumulative
		Share		Contributed		Translation
		Capital		Surplus		Account		Deficit		Total
Balance, November 30, 2013		$	117,033,258	$	4,449,305	$	110,709	$	(126,866,180)	$	(5,272,908)
Net income for the three months ended February 28, 2014		-		-		-		86,420		86,420
Other comprehensive income for the three months ended February 28, 2014		-		-		90,662		-		90,662
Balance, February 28, 2014		$	117,033,258	$	4,449,305	$	201,371	$	(126,779,760)	$	(5,095,826)
Balance, December 31, 2014		$	117,045,763	$	5,360,748	$	298,329	$	(126,615,856)	$	(3,911,016)
Net loss for the three months ended March 31, 2015		-		-		-		100,151		100,151
Other comprehensive loss for the three months ended March 31, 2015		-		-		232,994		-		232,994
Transactions with owners, recorded directly in equity
	Issuance of common shares	624,029		-		-		-		624,029
	Shareâ€'based payments	-		422,716		-		-		422,716
	Total transactions with owners	624,029		422,716		-		-		1,046,745
Balance, March 31, 2015		$	117,669,792	$	5,783,464	$	531,323	$	(126,515,705)	$	(2,531,126)

 

 

MEDICURE INC.
Condensed Consolidated Interim Statement of Cash Flows
(expressed in Canadian dollars)
Unaudited
			Three months		Three months
			ended		ended
			March 31, 2015		February 28, 2014
Cash (used in) provided by:
Operating activities:
	Net income for the period		$	100,151	$	86,420
	Adjustments for:
		Revaluation of longâ€'term derivative	67,724		-
		Loss on settlement of debt	60,595		-
		Amortization of property and equipment	2,417		1,339
		Amortization of intangible assets	159,995		141,081
		Stockâ€'based compensation	422,716		-
		Finance expense	215,818		398,649
		Unrealized foreign exchange (gain) loss	46,888		10,841
	Change in the following:
		Accounts receivable	(307,186)		(743,019)
		Inventories	(104,248)		81,631
		Prepaid expenses	(27,007)		(181,507)
		Accounts payable and accrued liabilities	332,542		371,283
		Other longâ€'term liability	7,639		2,195
	Interest paid		(90,661)		(105,121)
	Royalties paid		(98,880)		(28,307)
Cash flows from operating activities			788,503		35,485
Investing activities:
	Acquisition of property and equipment		(31,444)		-
Cash flows used in investing activities			(31,444)		-
Foreign exchange gain on cash held in foreign currency			10,824		153
Increase in cash			767,883		35,638
Cash, beginning of period			493,869		9,136
Cash, end of period			$	1,261,752	$	44,774
Supplementary information:
Nonâ€'cash financing activities:
	Shares issued on debt settlement		624,029		-

 

 

SOURCE Medicure Inc.

 

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