UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 6-K
REPORT OF
FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of May 2017
Commission File Number: 001-31995
MEDICURE
INC.
(Translation of registrant's name into English)
2-1250 Waverley Street
Winnipeg, MB Canada R3T 6C6
(Address of principal executive offices)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F o
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether the registrant
by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b) under the Securities Exchange Act of 1934.
Yes o
No x
If “Yes” is marked, indicate below
the file number assigned to the registrant in connection with Rule 12g3-2(b): 8a72____.
EXHIBIT
LIST
Exhibit |
Title |
|
|
99.1 |
News Release Dated May 24, 2017 - Medicure Reports Financial Results for Quarter Ended March 31, 2017 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Medicure Inc. |
|
(Registrant) |
|
|
|
|
|
Date: May 24, 2017 |
By: |
/s/ Dr. Albert D. Friesen |
|
Dr. Albert D. Friesen |
|
Title: President & CEO |
Exhibit 99.1
Medicure Reports Financial Results for Quarter Ended March 31,
2017
WINNIPEG, May 24, 2017 /CNW/ - Medicure Inc. ("Medicure"
or the "Company") (TSXV:MPH, OTC:MCUJF), a specialty pharmaceutical company, today reported its results from operations
for the quarter ended March 31, 2017.
Quarter Ended March 31, 2017 Highlights:
| · | Recorded net revenue of $8.7 million during the quarter
ended March 31, 2017 compared to $6.1 million for the quarter ended March 31, 2016, an increase of 43%; |
| · | Adjusted earnings before interest, taxes, depreciation
and amortization (EBITDA)1 for the quarter ended March 31, 2017 was negative $1.5 million compared to EBITDA of $2.1
million for the quarter ended March 31, 2016; |
| · | Net loss for the quarter ended March 31, 2017 was
$5.1 million, compared to net income of $792,000 for the quarter ended March 31, 2016; |
Financial Results
Net revenues for the quarter ended March 31, 2017 were $8.7
million compared to $6.1 million for the quarter ended March 31, 2016, an increase of 43%. Net revenue from the sale of AGGRASTAT
for the quarter ended March 31, 2017 was $7.0 million compared to $6.1 million for the quarter ended March 31, 2016, an increase
of 16%. Net revenues for the three months ended March 31, 2017 include $1.7 million in revenue from the Apicore business,
which was acquired on December 1, 2016.
The increase in AGGRASTAT revenue compared to 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. The Company's commercial team continues to work on expanding its customer base. For
the quarter ended March 31, 2017, the Company experienced its highest level of AGGRASTAT hospital demand in the history of owning
the product. Hospital demand exceeded wholesale demand due to reductions in inventory levels within the wholesale channel.
During this period, wholesalers adjusted their target days-on-hand range from 25-30 to 15-20 days.
In regards to revenues from the Apicore business it is important
to note that historically Apicore's revenues have been significantly lower in the first quarter of each year when compared to the
remainder of the year.
Adjusted EBITDA for the quarter ended March 31, 2017 after
adjusting for $61,000 of share-based compensation (a non-cash expense item) was negative $1.5 million compared to adjusted EBITDA
of $2.1 million for the quarter ended March 31, 2016 after adjusting for $100,000 of share-based compensation (a non-cash expense
item) and $251,000 relating to on-going costs pertaining to the one-time sNDA filing.
Net loss for the quarter ended March 31, 2017 was $5.1 million
or $0.33 per share, compared to net income of $792,000 or $0.05 per share for the quarter ended March 31, 2016. The net loss
primarily relates to the acquisition of Apicore, which has historically had significantly lower revenues in the first quarter of
each fiscal year when compared to the remaining quarters. The Apicore business resulted in higher cost of goods sold by $2.1
million, selling general and administration expenses by $1.6 million and research and development expenses by $4.0 million during
the quarter ended March 31, 2017. The Apicore research and development expenses include $2.9 million of amortization relating
to property, plant and equipment and intangible assets. As well, finance expense increased due to interest on the loan from
Crown Capital, which was obtained by the Company in November 2016. Expenses relating to the AGGRASTAT business also increased
with selling, general and administration expenses increasing for the quarter ended March 31, 2017 by approximately $400,000 due
to staff additions resulting in higher personnel expenses, and higher selling costs associated with the growth in the AGGRASTAT
business. Research and development expenses increased by $502,000 as a result of costs associated with the Company's development
of additional cardiovascular products.
At March 31, 2017, the Company had unrestricted cash totaling
$10.5 million compared to $12.3 million as of December 31, 2016. The decrease in cash is due to the net loss, after adjusting for
non-cash items, higher interest payments made during the quarter relating to the debt obtained in November 2016 and the acquisition
of 145,000 Class E common shares of Apicore during the quarter. Cash used in operating activities for the quarter ended March
31, 2017 were $834,000 compared to cash flows from operating activities of $4.8 million for the quarter ended March 31, 2016.
All amounts referenced herein are in Canadian dollars unless
otherwise noted.
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 one-time items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the
quarters ended March 31, 2017 and 2016 results prepared using International Financial Reporting Standards ("IFRS"), do
not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by
other companies.
Reminder for the Conference Call Tomorrow
Conference Call Info:
Topic: Medicure's Q1 Results
Call date: Thursday, May 25, 2017
Time: 7:30 AM Central Time (8:30 AM Eastern Time)
Canada toll-free: 1 (888) 465-5079 Canada toll: 1 (416) 216-4169
United States toll-free: 1 (888) 545-0687
Passcode: 8196 147#
Webcast: This conference call will be webcast live over
the internet and can be accessed from the Medicure investor relations page at the following link: http://www.medicure.com/investors.html
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 specialty pharmaceutical company focused on
the development and commercialization of therapeutics for the U.S. hospital market. The primary focus of the Company is the marketing
and distribution of AGGRASTAT (tirofiban hydrochloride) in the United States, where it is sold through the Company's U.S. subsidiary,
Medicure Pharma, Inc. Additionally, Medicure holds a majority interest in Apicore. 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.
Clinical Experience
In clinical studies with the HDB regimen, Aggrastat was administered in combination with aspirin, clopidogrel and heparin or bivalirudin
to over 8,000 patients for typically ≤24 hours.
Contraindications
Known hypersensitivity to any component of Aggrastat History of thrombocytopenia with prior exposure to Aggrastat Active internal
bleeding, or history of bleeding diathesis, major surgical procedure or severe physical trauma within previous month.
Warnings and Precautions
Aggrastat can cause serious bleeding. If bleeding cannot be controlled discontinue Aggrastat. Thrombocytopenia: Discontinue Aggrastat
and heparin.
Adverse Reactions
Bleeding is the most commonly reported adverse reaction.
For more information on AGGRASTAT, please refer to Full Prescribing
Information.
About Apicore
Apicore is a private, New Jersey based developer and manufacturer
of specialty Active Pharmaceutical Ingredients ("APIs") and pharmaceuticals, including over 15 Abbreviated New Drug Applications
("ANDAs"), one of which, is partnered with Medicure. Apicore manufactures over 100 different API's, including over
35 for which Drug Master Files have been submitted to the FDA and 16 that are approved for commercial sale in the U.S. by customers
of Apicore. Apicore specializes in the manufacture of difficult to synthesize, high value and other niche API's for many
U.S. and international generic and branded pharmaceutical companies. Apicore has two FDA-approved facilities. In the U.S.,
the Somerset, New Jersey facility can produce a few grams up to 200 kg volumes and in India, the Vadodara, Gujarat facility can
produce a few kilograms up to 60 metric tons yearly. Both facilities are equipped with state-of-the-art analytical and research
capabilities. For more information, please visit Apicore online at www.apicore.com.
To be added to Medicure's e-mail list, please visit:
http://medicure.mediaroom.com/alerts
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 potential for Apicore's revenue
and value to increase, and Medicure to secure and advance new products 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 year ended December 31, 2016.
AGGRASTAT® (tirofiban hydrochloride) is a registered
trademark of Medicure International, Inc.
Condensed Consolidated Interim Statements of Financial Position |
(expressed in Canadian dollars) |
(unaudited) |
|
March 31, 2017 |
December 31, 2016 |
|
|
|
Assets |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
10,508,035 |
$ |
12,266,177 |
|
Cash held in escrow |
- |
12,809,072 |
|
Accounts receivable |
8,386,045 |
17,200,778 |
|
Inventories |
12,559,244 |
12,176,644 |
|
Prepaid expenses |
1,705,262 |
759,077 |
|
Total current assets |
33,158,586 |
55,211,748 |
Non-current assets: |
|
|
|
Property, plant and equipment |
10,560,561 |
10,300,639 |
|
Goodwill |
47,025,886 |
47,485,572 |
|
Intangible assets |
97,370,195 |
100,864,817 |
|
Other assets |
168,066 |
161,891 |
|
Deferred tax assets |
694,214 |
701,000 |
|
Total non-current assets |
155,818,922 |
159,513,919 |
Total assets |
$ |
188,977,508 |
$ |
214,725,667 |
|
|
|
Liabilities and Equity |
|
|
Current liabilities: |
|
|
|
Short-term borrowings |
$ |
1,378,147 |
$ |
1,383,864 |
|
Accounts payable and accrued liabilities |
13,169,000 |
17,242,366 |
|
Current income taxes payable |
633,623 |
504,586 |
|
Deferred revenue |
1,150,364 |
1,161,608 |
|
Current portion of finance lease obligations |
88,377 |
89,241 |
|
Current portion of long-term debt |
2,484,449 |
2,883,752 |
|
Current portion of royalty obligation |
1,882,575 |
2,019,243 |
|
Derivative option on Apicore Class C shares |
32,582,506 |
32,901,006 |
|
Liability to repurchase Apicore Class E shares |
1,997,453 |
2,700,101 |
|
Total current liabilities |
55,366,494 |
60,885,767 |
Non-current liabilities |
|
|
|
Long-term debt |
56,263,099 |
68,180,424 |
|
Finance lease obligations |
209,614 |
242,449 |
|
Royalty obligation |
3,630,985 |
3,666,479 |
|
Due to vendor |
2,843,755 |
2,759,507 |
|
Fair value of Apicore Series A-1 preferred shares |
1,738,536 |
1,755,530 |
|
Other long-term liabilities |
137,702 |
133,999 |
|
Deferred tax liabilities |
35,818,190 |
38,142,775 |
|
Total non-current liabilities |
100,641,881 |
114,881,163 |
Total liabilities |
156,008,375 |
175,766,930 |
|
Condensed Consolidated Interim Statements of Financial Position (continued) |
(expressed in Canadian dollars) |
(unaudited) |
|
March 31, 2017 |
December 31, 2016 |
Equity: |
|
|
|
Share capital |
124,960,997 |
124,700,345 |
|
Warrants |
2,011,652 |
2,020,152 |
|
Contributed surplus |
6,645,197 |
6,756,201 |
|
Accumulated other comprehensive (loss) income |
(414,178) |
681,992 |
|
Deficit |
(102,365,478) |
(97,289,953) |
Total equity attributable to shareholders of the company |
30,838,190 |
36,868,737 |
|
Non-controlling interest |
2,130,943 |
2,090,000 |
Total equity |
32,969,133 |
38,958,737 |
Commitments and contingencies |
|
|
Subsequent events |
|
|
Total liabilities and equity |
$ |
188,977,508 |
$ |
214,725,667 |
Condensed Consolidated Interim Statements of Net (Loss) Income and Comprehensive (Loss) Income |
(expressed in Canadian dollars) |
(unaudited) |
Three months ended March 31 |
|
2017 |
2016 |
Revenue, net |
|
|
|
|
AGGRASTAT® |
|
$ |
7,013,396 |
$ |
6,068,864 |
|
Active Pharmaceutical Ingredients |
|
1,693,690 |
- |
Total Revenue, net |
|
8,707,086 |
6,068,864 |
Cost of goods sold |
|
2,649,091 |
874,494 |
Gross Profit |
|
6,057,995 |
5,194,370 |
|
|
|
|
Expenses |
|
|
|
|
Selling, general and administrative |
|
5,228,193 |
3,166,165 |
|
Research and development |
|
5,263,529 |
807,297 |
|
|
10,491,722 |
3,973,462 |
(Loss) income before the undernoted |
|
(4,433,727) |
1,220,908 |
|
|
|
|
Other expense: |
|
|
|
|
Revaluation of long-term derivative |
|
- |
89,298 |
|
|
- |
89,298 |
|
|
|
|
Finance costs (income): |
|
|
|
|
Finance expense, net |
|
2,158,865 |
346,880 |
|
Foreign exchange gain, net |
|
(361,149) |
(6,920) |
|
|
1,797,716 |
339,960 |
Net (loss) income before taxes |
|
$ |
(6,231,443) |
$ |
791,650 |
Income taxes (expense) recovery |
|
|
|
|
Current |
|
(133,255) |
- |
|
Deferred |
|
1,289,173 |
- |
Net (loss) income |
|
$ |
(5,075,525) |
$ |
791,650 |
Translation adjustment |
|
(1,116,098) |
(479,027) |
Comprehensive (loss) income |
|
$ |
(6,191,623) |
$ |
312,623 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per share: |
|
|
|
|
|
|
Basic |
|
$ |
(0.33) |
$ |
0.05 |
|
Diluted |
|
$ |
(0.33) |
$ |
0.05 |
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
15,538,859 |
|
14,596,006 |
|
Diluted |
|
|
15,538,859 |
|
16,673,117 |
Condensed Consolidated Interim Statements of Cash Flows |
(expressed in Canadian dollars) |
(unaudited) |
For the three months ended March 31 |
|
2017 |
2016 |
|
|
|
|
Cash (used in) provided by: |
|
|
|
Operating activities: |
|
|
|
|
Net (loss) income for the period |
|
$ |
(5,075,525) |
$ |
791,650 |
|
Adjustments for: |
|
|
|
|
|
Current income tax expense |
|
133,255 |
- |
|
|
Deferred income tax recovery |
|
(1,289,173) |
- |
|
|
Amortization of property and equipment |
|
388,363 |
19,005 |
|
|
Amortization of intangible assets |
|
2,505,697 |
420,547 |
|
|
Share-based compensation |
|
60,871 |
140,060 |
|
|
Finance expense, net |
|
2,158,865 |
346,880 |
|
|
Unrealized foreign exchange (gain) loss |
|
(364,289) |
6,750 |
|
|
Revaluation of long-term derivative |
|
- |
89,296 |
|
Change in the following: |
|
|
|
|
|
Accounts receivable |
|
7,882,110 |
6,642,899 |
|
|
Inventories |
|
(382,600) |
(200,383) |
|
|
Prepaid expenses |
|
(946,185) |
667,510 |
|
|
Other assets |
|
(6,175) |
- |
|
|
Accounts payable and accrued liabilities |
|
(4,073,366) |
(3,769,282) |
|
|
Deferred revenue |
|
(11,244) |
- |
|
|
Other long-term liabilities |
|
3,703 |
- |
|
Interest paid |
|
(1,423,431) |
(57,720) |
|
Royalties paid |
|
(395,146) |
(305,846) |
Cash flows (used in) from operating activities |
|
(834,270) |
4,791,368 |
Investing activities: |
|
|
|
|
Acquisition of Class E common shares of Apicore |
|
(935,595) |
- |
|
Acquisition of property and equipment |
|
(356,893) |
(51,248) |
Cash flows used in investing activities |
|
(1,292,488) |
(51,248) |
Financing activities: |
|
|
|
|
Exercise of stock options |
|
130,148 |
246,812 |
|
Exercise of Apicore stock options |
|
122,471 |
- |
|
Exercise of warrants |
|
11,000 |
- |
|
Repayment of long-term debt |
|
(12,655,040) |
(416,667) |
|
Decrease in cash in escrow |
|
12,809,072 |
- |
|
Finance lease payments |
|
(40,178) |
- |
|
Repayment of short-term borrowings |
|
(5,717) |
- |
Cash flows from (used in) financing activities |
|
371,756 |
(169,855) |
Foreign exchange gain on cash held in foreign currency |
|
(3,140) |
(170) |
(Decrease) increase in cash |
|
(1,758,142) |
4,570,095 |
Cash and cash equivalents, beginning of period |
|
12,266,177 |
3,568,592 |
Cash and cash equivalents, end of period |
|
$ |
10,508,035 |
$ |
8,138,687 |
SOURCE Medicure Inc.
View original content: http://www.newswire.ca/en/releases/archive/May2017/24/c7832.html
%CIK: 0001133519
For further information: James Kinley, Chief Financial Officer,
Tel. 888-435-2220, Fax 204-488-9823, E-mail: info@medicure.com, www.medicure.com
CO: Medicure Inc.
CNW 17:30e 24-MAY-17
This regulatory filing also includes additional resources:
ex991.pdf
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