Medexus Reports Record US$113.1 Million Revenue for Fiscal Year 2024

Medexus Pharmaceuticals, a specialty pharmaceutical company, released its operating and financial results for the fourth fiscal quarter and fiscal year ending March 31, 2024. Medexus reported a record revenue of $113.1 million for fiscal year 2024, reflecting a 4.6% increase from the previous year, largely due to full recognition of Gleolan net sales and continued growth in demand for Rupall. However, these gains were partly offset by reduced sales of IXINITY and decreased effective unit-level prices for Rasuvo.

For the last quarter of fiscal 2024, Medexus reported revenue of $26 million, a decline of 9.1% compared to the same period the previous year. This reduction was attributed to lower purchases of IXINITY by pharmacy and wholesale customers, combined with ongoing price reductions for Rasuvo.

Medexus achieved a record Adjusted EBITDA of $19.5 million for the year, marking a 20.9% increase over fiscal 2023. This was driven by the aforementioned revenue changes and reductions in operating expenses. However, Adjusted EBITDA for the fourth fiscal quarter decreased by 8.8% to $4.4 million due to the same revenue factors.

The company reported available liquidity of $5.3 million as of March 31, 2024, down from $13.1 million the previous year. This decline was primarily due to the repayment of convertible debentures in October 2023. Operating income for the year increased by 42.1% to $10.8 million, though it dropped by 69.6% in the last quarter to $0.8 million, reflecting mixed performance across product lines.

Medexus reported a net loss of $0.2 million for the fiscal year, a reversal from a $1.2 million profit in fiscal 2023, and a net income of $0.8 million for the fourth quarter. Adjusted Net Loss for the year improved to $0.3 million, and Adjusted Net Income for the fourth quarter was $0.8 million, reflecting significant financial adjustments and performance variations.

CEO Ken d'Entremont expressed satisfaction with the company’s annual performance and noted progress in expense management initiatives. He highlighted the FDA's acceptance for review of the resubmitted New Drug Application (NDA) for treosulfan, indicating its potential to become a standard preparative regimen for allogeneic hematopoietic stem cell transplantation in North America if approved.

CFO Marcel Konrad emphasized the company's improved financial position following the repayment of convertible debentures, leaving the company’s BMO credit facilities as the sole remaining debt. Konrad announced his departure from Medexus, to be succeeded by Brendon Buschman, who has been with the company since 2019.

Operationally, Medexus faced challenges with IXINITY, noting a 6% decrease in unit demand due to market dynamics and competition from extended half-life products. Rasuvo maintained its market-leading position with strong unit demand, though revenue was affected by statutory discounts and rebates.

Rupall continued to perform robustly in Canada, with a 21% increase in unit demand. However, Medexus anticipates generic competition following the expiry of Rupall’s market exclusivity in January 2025. Gleolan saw moderate growth in unit demand, and Medexus plans to focus on maximizing its revenue despite lower-than-expected performance.

Metoject's unit demand increased by 13% in Canada, despite generic competition. Medexus expects the recently concluded litigation regarding Metoject’s patent to have limited impact on its market position due to ongoing pricing strategies.

Medexus also reported progress in its product pipeline, including the FDA's review of the treosulfan NDA and Health Canada's review of a New Drug Submission for topical terbinafine. These developments are expected to contribute significantly to the company's future revenues.

Finally, Medexus announced management changes, with Richard Labelle appointed as Chief Operating Officer to oversee day-to-day operations, and Mike Adelman’s departure as General Manager of US Operations. The company believes these changes will better position it for future growth.