Medexus Pharmaceuticals posts strong year-over-year increase in 2Q revenue

Medexus Pharmaceuticals Inc (CVE:KMDP) (OTCMKTS:PDDPF) has released fiscal second-quarter results showing a strong year-over-year increase in revenue. 

For the three months ended September 30, the Montreal-based drugmaker said total revenue was C$16.4 million, compared to revenue of C$3.4 million in the prior-year quarter. 

“This improvement reflects continued unit sales growth, as well as the increased scale of the company as a result of the acquisitions completed in October 2018,” said CEO Ken d’Entremont in a statement issued Friday.

READ: Medexus Pharmaceuticals wins priority review status from Health Canada for brain tumor aid Gliolan

Medexus is focused on the therapeutic areas of auto-immune disease and pediatrics. The leading products are Rasuvo and Metoject, designed to treat rheumatoid arthritis and other auto-immune diseases; and Rupall, an innovative allergy medication.

“Specifically, Metoject unit market demand increased 115%, Rasuvo unit market demand increased 15%, and Rupall unit market demand increased 66% over the same period last year,” d’Entremont added.

Medexus reported other quarterly highlights:

• Gross profit of C$9.6 million, compared to C$1.9 million in the year-ago quarter;
• Gross margin was 58.6%, compared to 53.8% in 2Q 2019;
• Adjusted EBITDA  was C$0.5 million, compared to C$0.5 million for the prior-year quarter;
• Net income was C$0.7 million, compared to a net loss of C$3.6 million in 2Q 2019;
• Finished the quarter with cash and cash equivalents of C$25.4 million

“Looking ahead, we have built a highly scalable organization and look forward to leveraging our North American sales force by licensing additional products and through accretive acquisitions,” said d’Entremont.

“As a result, we remain encouraged by the outlook for fiscal 2020, as illustrated by the fact we have repurchased over 600,000 shares year-to-date under the company’s normal course issuer bid. At the same time, we have maintained a solid balance sheet with C$25.4 million of cash and cash equivalents, as well as a working capital surplus of approximately C$29.4 million as of September 30, 2019.”

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Story by ProactiveInvestors