Medicure Reports Financial Results for the First Quarter of 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




Non‑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


Long‑term derivative

126,767

194,491


Total non‑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 long‑term debt

22,295

22,295


Current portion of long‑term debt

1,057,511

654,877


Total current liabilities

4,468,875

4,377,498




Non‑current liabilities




Long‑term debt

3,837,726

4,225,949


Royalty obligation

1,824,763

1,715,310


Other long‑term liability

160,417

152,778


Total non‑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


Share‑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 long‑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



Stock‑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 long‑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:



Non‑cash financing activities:




Shares issued on debt settlement

624,029

-

 

SOURCE Medicure Inc.

For further information: Dawson Reimer, President & COO, Tel. 888-435-2220, Fax 204-488-9823, E-mail: info@medicure.com, www.medicure.com

RELATED LINKS
http://www.medicureinc.com

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