Conference call to be held in connection with
the Company's Q1 2021 results to be released in May 2021
WINNIPEG, MB, April 20, 2021
/CNW/ - 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 and year ended December 31, 2020.
Quarter and Year Ended December 31,
2020 Highlights:
- Recorded total net revenue of $11.6
million during the year ended December 31, 2020 compared to $20.2 million for the year ended December 31, 2019 and;
- Recorded total net revenue of $2.4
million during the quarter ended December 31, 2020 compared to $3.5 million for the quarter ended December 31, 2019 and;
- Recorded total net revenue from the sale of
AGGRASTAT® of $10.6
million during the year ended December 31, 2020 compared to $19.4 million for the year ended December 31, 2019 and;
- Diversified product portfolio with
ZYPITAMAG® revenues of $453,000 and revenues from the Marley Drug
business of $340,000 during the year
ended December 31, 2020 and;
- Reduced selling expenses to $5.4
million for the year ended December
31, 2020 compared to $13.4
million for the year ended December
31, 2019 and;
- Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA1) for the year ended December 31, 2020 was negative $3.9 million compared to adjusted EBITDA of
negative $3.8 million for the year
ended December 31, 2019 and;
- Net loss for the year ended December 31,
2020 was $6.8 million compared
to $19.8 million for the year ended
December 31, 2019;
Financial Results
The decrease in AGGRASTAT® revenues when compared to
the same periods in the previous year, as described above, is the
result of decreases in the volume of AGGRASTAT® sold in
2020 when compared to 2019, due mainly to fewer procedures being
performed as a result of the COVID-19 pandemic and a decline in the
overall use of the drug class. In addition, the Company continues
to experience pricing pressures from competitors which contributed
to the decline in revenue from AGGRASTAT®.
ZYPITAMAG® contributed $453,000 of revenue for the year ended
December 31, 2020 compared to
$183,000 for the year ended
December 31, 2019. With the
acquisition of the Marley Drug business in December of 2020,
including direct to patient marketing, and improved insurance
coverage experienced during 2020, the Company has seen some growth
in interest in ZYPITAMAG® during 2020. COVID-19 has
provided some challenges with physician access, however, the
Company continues to pursue innovative marketing strategies to grow
the usage of the product.
The Marley Drug business, acquired on December 17, 2020, contributed $340,000 of revenue to the Company for the period
beginning on December 17, 2020.
Marley provides excellent customer service, cost competitive
medications, expedited direct to patient delivery, and is licensed
in 49 states, Washington D.C. and
Puerto Rico. Its advanced
operating systems include automated pill dispensing, an extended
supply generic drug program, and an effective customer
communication system. Marley has been successful in marketing
directly to customers, providing access to medications without the
need for insurance, and building a nationwide customer base.
Additionally, sodium nitroprusside (SNP), which was first sold
commercially during 2020, contributed $116,000 of revenue during the year ended
December 31, 2020. The Company also
earned $95,000 of revenue from
ReDSTM during the year ended December 31, 2020 compared to $618,000 for the year ended December 31, 2019.
Adjusted EBITDA for the three months ended December 31, 2020 was negative $2.9 million compared to negative $1.9 million for the three months ended
December 31, 2019. The decrease in
adjusted EBITDA for the three months ended December 31, 2020 is the result of lower revenues
when compared to the same period in 2019 and higher general and
administrative expenses as a result of increased legal expenses
resulting from the patent challenge litigation which was settled
during the three months ended December 31,
2020.
Adjusted EBITDA for the year ended December 31, 2020 was negative $3.9 million consistent with negative
$3.8 million for the year ended
December 31, 2019. Adjusted EBITDA
for the year ended December 31, 2020
resulted from lower revenues, however this revenue decline was
offset by lower selling and research and development expenses when
compared to 2019.
During the year ended December 31,
2020, the Company recorded $860,000 in government assistance resulting from
the Canada Emergency Wage
Subsidy. The funding has been recorded as a reduction of the
related salary expenditures with $595,000 recorded within selling expenses,
$159,000 recorded within general and
administrative expenses and $106,000
recorded within research and development expenses.
Net loss for the three months ended December 31, 2020 was $4.4
million or $0.41 per share
compared to net loss of $15.5 million
or $1.08 per share for the three
months ended December 31, 2019. The
main factors contributing to the decrease in the net loss recorded
for the three months ended December 31,
2020 were the impairment loss recorded on the
ReDSTM license, and a loss recorded upon the settlement
of the holdback receivable during the three months ended
December 31, 2019, partially offset
by lower revenue experienced during the three months ended
December 31, 2020.
Net loss for the year ended December 31,
2020 was $6.8 million or
$0.64 per share compared to
$19.8 million or $1.32 per share for the year ended December 31, 2019. The main factors contributing
to the decrease in the net loss recorded for the year ended
December 31, 2020 were the impairment
loss recorded on the ReDSTM license, and a loss recorded
upon the settlement of the holdback receivable during 2019,
partially offset by lower revenue experienced during the year ended
December 31, 2020.
At December 31, 2020, the Company
had unrestricted cash totaling $2.7
million, down from the $13.0
million of unrestricted cash held as of December 31, 2019, primarily due to cash used in
the acquisition of Marley Drug. The Company is in the process of
obtaining debt financing from a commercial bank to replenish its
cash balance. Cash flows used in operating activities for the year
ended December 31, 2020 totaled
$2.2 million compared to $14.6 million for the year ended December 31, 2019.
All amounts referenced herein are in Canadian dollars unless
otherwise noted.
The Company plans to hold an investor conference call in early
May 2021 to present the results for
the year ended December 31, 2020 and
the three months ended March 31, 2021
with date and dial in information to be provided. 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, 2020 and 2019 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.
|
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"), a pharmacy located in
North Carolina that offers an
Extended Supply mail order drug program serving 49 states,
Washington D.C. and Puerto Rico. Marley 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®, refer to the full Prescribing Information.
For additional information about ZYPITAMAG®, refer to
the full Prescribing Information.
To be added to Medicure's e-mail list, please visit:
http://medicure.mediaroom.com/alerts
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 PRV, 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 Form 20F for the year ended December 31, 2020.
AGGRASTAT® (tirofiban hydrochloride) injection and
ZYPITAMAG® (pitavastatin) tablets are
registered trademarks of Medicure International Inc.
Consolidated Statements of Financial Position
(expressed in thousands of Canadian dollars, except per share
amounts)
|
As at December
31
|
2020
|
2019
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
2,716
|
$
|
12,965
|
|
Restricted
cash
|
1,394
|
-
|
|
Accounts
receivable
|
5,253
|
10,216
|
|
Inventories
|
5,139
|
6,328
|
|
Prepaid
expenses
|
1,174
|
1,855
|
|
Total current
assets
|
15,676
|
31,364
|
|
Non–current
assets:
|
|
|
|
Property and
equipment
|
1,640
|
1,282
|
|
Intangible
assets
|
13,596
|
9,599
|
|
Goodwill
|
2,986
|
-
|
|
Other
assets
|
156
|
39
|
|
Total non–current
assets
|
18,378
|
10,920
|
|
Total
assets
|
$
|
34,054
|
$
|
42,284
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
6,979
|
$
|
9,384
|
|
Current portion of
royalty obligation
|
362
|
872
|
|
Current portion of
acquisition payable
|
637
|
649
|
|
Holdback
payable
|
1,876
|
-
|
|
Current portion of
contingent consideration
|
1,925
|
-
|
|
Current income taxes
payable
|
164
|
517
|
|
Current portion of
lease obligation
|
367
|
240
|
|
Total current
liabilities
|
12,310
|
11,662
|
|
Non–current
liabilities
|
|
|
|
Royalty
obligation
|
335
|
1,176
|
|
Acquisition
payable
|
1,132
|
1,655
|
|
Contingent
consideration
|
51
|
-
|
|
Lease
obligation
|
1,080
|
849
|
|
Total non–current
liabilities
|
2,598
|
3,680
|
|
Total
liabilities
|
14,908
|
15,342
|
|
Equity:
|
|
|
|
Share
capital
|
80,917
|
85,364
|
|
Warrants
|
-
|
1,949
|
|
Contributed
surplus
|
10,294
|
8,028
|
|
Accumulated other
comprehensive income
|
(6,497)
|
(5,751)
|
|
Deficit
|
(65,568)
|
(62,648)
|
|
Total
Equity
|
19,146
|
26,942
|
|
Total liabilities
and equity
|
$
|
34,054
|
$
|
42,284
|
Consolidated Statements of Net (Loss) Income and
Comprehensive (Loss) Income
(expressed in thousands of
Canadian dollars, except per share amounts)
|
For the year ended
December 31
|
2020
|
2019
|
2018
|
|
Revenue,
net
|
|
|
|
|
Product sales,
net
|
$
|
11,610
|
$
|
20,173
|
$
|
29,109
|
|
Cost of goods
sold
|
6,480
|
7,272
|
4,152
|
|
Gross
profit
|
5,130
|
12,901
|
24,957
|
|
|
|
|
|
Expenses
|
|
|
|
|
Selling
|
5,359
|
13,399
|
15,580
|
|
General and
administrative
|
4,579
|
3,395
|
3,922
|
|
Research and
development
|
3,299
|
4,349
|
6,681
|
|
13,237
|
21,143
|
26,183
|
|
|
|
|
|
Other expense
(income):
|
|
|
|
|
Revaluation of
holdback receivable
|
-
|
3,623
|
1,473
|
|
Impairment loss on
intangible assets
|
-
|
6,321
|
-
|
|
-
|
9,944
|
1,473
|
|
Finance (income)
costs:
|
|
|
|
|
Finance (income)
expense, net
|
(765)
|
(1,115)
|
(1,061)
|
|
Foreign exchange
(gain) loss, net
|
(497)
|
2,570
|
(6,461)
|
|
(1,262)
|
1,455
|
(7,522)
|
|
Net (loss) income
before income taxes
|
$
|
(6,845)
|
$
|
(19,641)
|
$
|
4,823
|
|
Income tax (expense)
recovery
|
|
|
|
|
Current
|
-
|
(22)
|
(678)
|
|
Deferred
|
-
|
(123)
|
(219)
|
|
-
|
(145)
|
(897)
|
|
Net (loss)
income
|
$
|
(6,845)
|
$
|
(19,786)
|
$
|
3,926
|
|
Item that may be
reclassified to profit or loss
|
|
|
|
|
Exchange differences
on translation of foreign subsidiaries:
|
(746)
|
(683)
|
595
|
|
|
|
|
|
Item that will not be
reclassified to profit and loss
|
|
|
|
|
Revaluation of
investment in Sensible Medical at FVOCI
|
-
|
(6,336)
|
-
|
|
Comprehensive (loss)
income
|
$
|
(7,591)
|
$
|
(26,805)
|
$
|
4,521
|
|
(Loss) earnings per
share
|
|
|
|
|
Basic
|
$
|
(0.64)
|
$
|
(1.32)
|
$
|
0.25
|
|
Diluted
|
$
|
(0.64)
|
$
|
(1.32)
|
$
|
0.24
|
Consolidated Statements of Cash Flows
(expressed
in thousands of Canadian dollars, except per share amounts)
|
For the year ended
December 31
|
2020
|
2019
|
2018
|
|
Cash (used in)
provided by:
|
|
|
|
|
Operating
activities:
|
|
|
|
|
Net (loss) income for
the year
|
$
|
(6,845)
|
$
|
(19,786)
|
$
|
3,926
|
|
Adjustments
for:
|
|
|
|
|
Current income tax
expense (recovery)
|
-
|
22
|
678
|
|
Deferred income tax
expense (recovery)
|
-
|
123
|
219
|
|
Impairment of property
and equipment
|
-
|
95
|
-
|
|
Impairment of
intangible assets
|
-
|
6,321
|
-
|
|
Revaluation of
holdback receivable
|
-
|
3,623
|
1,473
|
|
Amortization of
property and equipment
|
307
|
485
|
103
|
|
Amortization of
intangible assets
|
2,466
|
1,438
|
196
|
|
Share–based
compensation
|
317
|
417
|
1,022
|
|
Write-down of
inventories
|
682
|
1,983
|
95
|
|
Finance (income)
expense, net
|
(765)
|
(1,115)
|
(1,061)
|
|
Unrealized foreign
exchange (gain) loss
|
(497)
|
362
|
(5,323)
|
|
Change in the
following:
|
|
|
|
|
Accounts
receivable
|
5,081
|
(318)
|
(1,341)
|
|
Inventories
|
723
|
(4,072)
|
(1,259)
|
|
Prepaid
expenses
|
703
|
842
|
(1,793)
|
|
Other
assets
|
-
|
78
|
-
|
|
Accounts payable and
accrued liabilities
|
(3,802)
|
(4,992)
|
7,132
|
|
Interest received
(paid), net
|
22
|
1,685
|
255
|
|
Income taxes
paid
|
(306)
|
(477)
|
(2,041)
|
|
Royalties
paid
|
(326)
|
(1,355)
|
(1,539)
|
|
Cash flows (used
in) from operating activities
|
(2,240)
|
(14,641)
|
742
|
|
Investing
activities:
|
|
|
|
|
Acquisition of Marley
Drug, Inc, net of cash acquired
|
(7,238)
|
-
|
-
|
|
Investment in Sensible
Medical
|
-
|
(6,337)
|
-
|
|
Proceeds from Apicore
Sale Transaction
|
-
|
-
|
65,235
|
|
Receipt of holdback
receivable funds
|
-
|
6,719
|
-
|
|
Redemptions (purchase)
of short-term investments
|
-
|
47,747
|
(44,100)
|
|
Acquisition of
property and equipment
|
(2)
|
(186)
|
(197)
|
|
Acquisition of
intangible assets
|
-
|
(13,660)
|
(1,281)
|
|
Cash flows from
investing activities
|
(7,240)
|
34,283
|
19,657
|
|
Financing
activities:
|
|
|
|
|
Repurchase of common
shares under substantial issuer
bid
|
-
|
(26,139)
|
-
|
|
Repurchase of common
shares under normal course issuer
bid
|
(522)
|
(4,145)
|
(3,021)
|
|
Proceeds from exercise
of stock options
|
-
|
20
|
363
|
|
Repayment of lease
liability
|
(244)
|
-
|
-
|
|
Cash flows used in
financing activities
|
(766)
|
(30,264)
|
(2,658)
|
|
Foreign exchange
(loss) gain on cash held in foreign currency
|
(3)
|
(552)
|
1,138
|
|
(Decrease) increase in
cash
|
(10,249)
|
(11,174)
|
18,879
|
|
Cash and cash
equivalents, beginning of period
|
12,965
|
24,139
|
5,260
|
|
Cash and cash
equivalents, end of period
|
$
|
2,716
|
$
|
12,965
|
$
|
24,139
|
View original
content:http://www.prnewswire.com/news-releases/medicure-reports-financial-results-for-quarter-and-year-ended-december-31-2020-301273200.html
SOURCE Medicure Inc.