The CEO said that the pharmaceutical company’s focus is currently on the safety of it personnel as well as ensuring continuity of access for its patients.
The Toronto- and Montreal-based firm is also concentrating on monitoring the status of its supply and distribution partners and “open and frequent” communication with lenders and shareholders, according to d’Entremont.
“In a crisis situation such as the one presented by the COVID-19 outbreak, it is critical that pharmaceutical companies do everything possible to ensure that the patients who depend on their products continue to receive them,” the company said in a release.
Medexus is in daily communication with its manufacturing partners and is not aware of any disruption to the supply of any of its products, it said. The firm was assured that shipments of the company’s products are proceeding as planned.
“We would like to reassure the patients who rely on our products and the shareholders who have invested in our growth that our business remains strong,” d’Entremont said in a statement.
“Our supply channel is secure and we are working to ensure it remains so to support the demand for our products in the market. We have three to six months of inventory in all key product lines and expect additional shipments in the next two weeks that should extend inventory levels to at least six months across all key product lines.”
Products 'readily available'
The company in particular reassured patients who rely on IXINITY, the intravenous recombinant factor IX therapeutic for Hemophilia B acquired by Medexus at the end of February, that the product is “readily available.”
On a corporate level, Medexus said all necessary steps were taken to ensure that its employees limit any possible exposure to coronavirus, including implementing work-from-home practices where possible and ceasing in-person business visits to healthcare professionals.
Medexus did say that it expects “meaningful delays” in the enrollment of the pediatric trial for IXINITY, but it will not materially affect revenue forecasts as the trial is incremental to the company’s projections.
Revenue growth is likely unattainable this fiscal year, Medexus told shareholders. However, the impact of coronavirus on its prescription driven business, which accounts for approximately 90% of the company’s revenues, will be limited.
The firm expects to see costs savings from less travel, marketing and promotional initiatives as well as from strength of the US dollar in relation to the Canadian dollar.
'Business as usual'
CEO d’Entremont told shareholders that it was “business as usual” to the greatest possible extent.
“We remain encouraged by our outlook and confident that the company we have built with the support of our partners and stakeholders is well positioned to emerge from this global crisis even stronger,” d’Entremont said.
The firm issued an aggregate of approximately 533,137 shares to holders of the company’s 6% unsecured convertible debentures in satisfaction of the $1.26 million interest payment due to holders of debentures on March 31, 2020.
The decision to make the interest payment in shares reflects the company’s current focus on protecting the strength of its balance sheet in light of the uncertainty caused by the coronavirus pandemic, it told shareholders.
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