The pharmaceutical firm said its 1Q revenue figure, which was up from $16.1 million in fiscal 1Q last year, was driven by growth from its auto-immune disease, hematology and allergy treatment products. Revenue was ahead of analyst estimates of around $26.8 million.
Medexus also delivered operating income of C$1.6 million compared to an operating loss of $1.1 million a year prior.
In a statement accompanying the results on Tuesday evening, Medexus CEO Ken d’Entremont highlighted the company’s record revenue and adjusted EBITDA of $27.5 million and $5 million, respectively, for the three months ended June 30, 2020, compared to $16.1 million and $0.5 million, respectively, for the same period last year.
In addition to year-over-year growth, both revenue and adjusted EBITDA increased sequentially versus the three months ended March 31, 2020, which also included revenue from IXINITY.
“This year-over-year and sequential improvement was driven by the strong performance of our core products, IXINITY, Rasuvo, Metoject and Rupall, each of which continues to achieve strong organic growth despite the ongoing COVID-19 pandemic,” d’Entremont told shareholders.
“Additionally, with the acquisition of IXINITY in the USA, we are further leveraging our existing commercial infrastructure and our SG&A has meaningfully declined as a percentage of revenues to just 41% this quarter, versus 65% for the same period last year.”
Medexus generated $4.1 million of cash flow from operations during the quarter and strengthened its balance sheet with available liquidity of $14.5 million at June 30, 2020, compared to $7.4 million at March 31, 2020. The firm’s net loss came in at C$4.8 million compared to C$2.2 million during 2Q 2019.
“Overall, we have built a highly scalable business model and continue to actively evaluate additional products and potential accretive acquisitions that would enable us to further leverage our North American commercial infrastructure,” d’Entremont added.
Mackie calls the results 'solid'
In a note Wednesday, Mackie analysts André Uddin and Toby Ma called the 1Q 2021 results “solid” as revenue beat their estimates.
“Medexus achieved positive cash flow in 1Q due to continuing sales growth and previous opex reductions – we expect the company’s positive cash flow trend to continue going forward,” Uddin and Ma wrote.
The analysts noted that the pharmaceutical firm’s US business is in a good growth phase, while its Canadian segment should see positive momentum continue.
“Metoject and Rupall have shown strong demand growth – their unit demand increased 75% and 48%, respectively, in the last twelve months,” Uddin and Ma wrote. “Additionally, multiple products are in the launch phase, which should translate to increasing sales down the road.”
Mackie maintains a Speculative Buy on Medexus’ stock and a C$6.30 price target.
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