Medexus Pharmaceuticals Inc (CVE:MDP) (OTCQX:MEDXF) (FRA:P731) announced its fiscal third quarter results after the bell Monday, revealing record quarterly revenue of C$31.5 million in the three months ended December 31.
The company nearly doubled its revenue year-over-year from C$16.2 million in the same period in 2019, and its revenue for the nine months ended December 31 increased 70% to C$82.7 million from 2019. Adjusted net loss improved by C$4.7 million to C$500,000, compared to $5.2 million in the same period a year earlier.
As previously reported, the revenue for the period included about $3 million from its Hemophilia B treatment IXINITY, which was expected to be realized in September 2020 but came in October after a delay in receipt of the finished product from the company’s contract manufacturing partner. Medexus acquired IXINITY, an oncology, autoimmune and hematology therapeutics company, in February 2020.
READ: Medexus begins commercial launch of tumor imaging powder Gleolan in Canada
Operating income improved by C$5.3 million to C$2.0 million, compared to an operating loss of C$3.3 million for the same period last year.
Additionally, given significant share price appreciation in the quarter, the non-cash fair value of the derivative associated with the conversion rights of existing debentures increased materially to C$16.5 million, the company said. This increase in fair value of derivatives was the primary driver for the reported net loss of C$17.1 million compared to C$2.6 million for the same period last year.
“We continued to generate solid growth while managing our expenses and the $5.3 million improvement in operating income was a strong reflection of that,” CEO Ken d’Entremont said in a statement. “Our $82.7 million in revenue for the first nine months of fiscal 2021 reflects a 70% increase over the previous year and achieved strong adjusted EBITDA performance of a more than six-fold increase over the previous year. With a strong base of revenues from Rasuvo, IXINITY Metoject and Rupall, we believe that the recent additions to our portfolio will become major drivers of our growth going forward.”
Looking ahead, d’Entremont is optimistic about Medexus’ future after the company secured an oversubscribed financing and signed a licensing deal for treosulfan, a conditioning agent used prior to stem cell transplantation.
“Subsequent to the end of the quarter, we completed a transformative licensing deal for treosulfan in the United States and materially enhanced our ability to fund our growth initiatives, with the completion of an oversubscribed financing of $32.5 million,” d’Entremont said. “In the coming quarters, we will continue to invest in our business, putting in place the people and infrastructure required to support the launch of treosulfan. This investment will be the key to supporting and enabling the significant revenue growth that we expect from treosulfan.
“Despite this material addition to our product portfolio, the quality of our in-licensing opportunities continues to broaden and deepen and we are working diligently to prioritize and pursue those that will best enable us to further leverage our North American commercial infrastructure.”
The company also plans to pursue a Nasdaq listing in the coming months, d’Entremont said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel