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.
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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.”
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