Medexus Pharmaceuticals (TSX: MDP) (OTCQX: MEDXF) has released its financial and operational results for the third quarter of its fiscal year 2023, ending December 31, 2022. The company provides an update on its business performance, with all dollar amounts expressed in United States dollars.
Financial Highlights for Fiscal Q3 2023
Medexus has reported a record-breaking $28.7 million in total revenue for the quarter, a remarkable 35% year-over-year increase and 4% quarter-over-quarter growth. The surge in net sales across the company’s portfolio, including full recognition of Gleolan sales in the US from September 2022, has been the main driver of this unprecedented financial result. This marks the strongest fiscal quarter in Medexus’s history.
The stellar results this quarter saw a record Adjusted EBITDA of $5.2 million, a remarkable year-over-year improvement of $3.3 million and a quarter-over-quarter increase of $1.0 million. This was driven by increases in revenues and a decrease in research & development costs, making it a truly remarkable achievement.
We are thrilled to report a year-over-year improvement of $3.2 million in our operating profit, bringing it to a total of $2.9 million. This is a tremendous accomplishment that demonstrates the hard work and dedication of our team.
Year-over-year, our net loss has increased by an alarming $(0.4) million, resulting in a total of $(1.5) million.
We are pleased to report an impressive year-over-year improvement of $2.5 million in our Adjusted Net Loss, which adjusts for the unrealized gains and losses included in net profit (loss). The result was a total of $0.9 million.
At the close of fiscal Q3 2023, our total available liquidity stood at an impressive $10.1 million, with $9.3 million of that being held as cash and cash equivalents.
Medexus is proud to announce a record-breaking quarter, showcasing the strength of our product portfolio and our commitment to consistent revenue growth and positive Adjusted EBITDA*. During the quarter, we achieved growth in our prescription product offerings in both the United States and Canada, and experienced great success in our base business. This is a testament to our hard-working team and dedication to excellence.
Marcel Konrad, Chief Financial Officer of Medexus, proudly reported that the company had seen a steady rise in its accounts receivable during the third quarter. He attributed this to investments in working capital which are expected to have a positive impact on the company’s cash flow in the coming quarters.
As we continue to assess our capital structure, we are making headway in finding solutions to address our short-term liabilities. We are currently in the late stages of a competitive process that has attracted a great deal of interest from potential capital providers.
We are delighted to welcome Harmony P. Garges MD MPH and Menassie Taddese MBA to our board of directors, effective February 6, 2023. Harmony brings a wealth of experience in medical affairs and medical regulatory matters, while Menassie’s extensive corporate finance and management expertise will be invaluable as we progress our business plans and explore new opportunities. We are thrilled to have both Harmony and Menassie on board and look forward to their contributions.
The United States experienced sustained demand for IXINITY during the three-month and 12-month periods ended December 31, 2022. This was driven by the growth of new patients, combined with a steady base of existing customers, after in-person sales resumed earlier in the year. Additionally, Medexus’ advancements in the IXINITY manufacturing process resulted in improved manufacturing costs.
Rasuvo has maintained its impressive dominance of the U.S. branded methotrexate market with an estimated 80% unit share during the trailing 12-month period ended December 31, 2022. Despite increasing competition, unit demand for Rasuvo remains strong and its sales force allocation remains limited. However, these rising competitive pressures have resulted in adverse impacts on Rasuvo product-level revenue.
Canadian demand for our product skyrocketed during the three-month period ended December 31, 2022, with unit demand growth soaring 25% for the trailing 12-month period ending that same date. This impressive result can be attributed to the successful implementation of our five-year sales and marketing strategy since launch, as reported by IQVIA CDH units – Drugstores and hospitals purchases, MAT December 2022.
Medexus has been seeing unit demand that is in line with expectations, which has enabled them to execute their post-transition commercial plan, which includes new sales and marketing initiatives. Their efforts have paid off, as they started shipping Medexus-labeled product to customers across the United States in August. This meant September 2022 was their first full month and the three-month period ending December 31, 2022 was the first full fiscal quarter in which they recognized 100% of Gleolan net sales.
The Canadian methotrexate market experienced disruption in 2020 due to the launch of generic products, leading to product-level performance taking a hit. Nonetheless, unit demand in Canada increased during the three-month period ending December 31, 2022 and the trailing 12-month period ending December 31, 2022, as per IQVIA – TSA database. Medexus expects the Federal Court of Canada to make its decision regarding the patent litigation initiated in August 2020 and concluded in January 2023 later this year, which could potentially change the current market scenario.
Medexus is an innovative leader in providing treatments for rare diseases, with a strong presence in North America and an impressive selection of top-tier products. Our current focus is on the areas of hematology, auto-immune diseases, and allergies, and we are dedicated to creating a highly unique company with a portfolio that is consistently expanding with innovative and valuable orphan and rare disease treatments. We are confident that this will be the driving force of our growth for the next ten years.
At Octapharma, we are proud to offer a variety of innovative and effective products to help people with a range of conditions. Our current leading products include IXINITY®, a recombinant factor IX therapeutic for Hemophilia B; Rasuvo® and Metoject®, a unique formulation of methotrexate for rheumatoid arthritis and other auto-immune diseases; Rupall®, an innovative prescription allergy medication with a unique mode of action; and Gleolan® (aminolevulinic acid hydrochloride or ALA HCl), an FDA-approved, orphan drug designated optical imaging agent indicated in patients with glioma as an adjunct for the visualization of malignant tissue during surgery.
We are proud to announce that we have officially licensed treosulfan for commercialization in the United States and Canada. Treosulfan is part of a preparative regimen for allogeneic hematopoietic stem cell transplantation and is used in combination with fludarabine. Health Canada approved Treosulfan in June 2021 and it is now available in Canada as Trecondyv™. We are also in the process of obtaining approval from the US Food and Drug Administration, so stay tuned for more updates!
At Health Care Solutions, we’re dedicated to providing healthcare professionals and patients with the highest quality products available. We take pride in our innovation, customer service, and collaboration, setting the standard for healthcare excellence. Our philosophy is simple: to help make healthcare better for everyone.