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MediPharm Labs Q2 Revenue Declines 14% YoY, Here Are The Details

Benzinga Real-time News ·  Aug 15, 2022 08:46

MediPharm Labs Corp. (OTCQX:MEDIF) (TSX:LABS) (FSE:MLZ) Q2 2022 revenue declined 14%, to CA$4.36 million ($3,37 million), compared to revenue of CA$5.07 million in Q2 2021.

Q2 2022 Financial Highlights

  • Gross profit was a loss of CA$532,000, compared to a loss of CA$7.73 million in Q2 2021.

  • Adjusted EBITDA was a loss of CA$6.34 million, compared to a loss of CA$7.43 million in Q2 2021.

Other Highlights

  • On April 20th, David Pidduck was named CEO and director of the company.

  • Subsequent to the quarter, entered into a share purchase agreement for the sale of MediPharm Labs Australia PTY for a minimum of AUD$6.9 million, which is expected to close in Q3 or Q4 2022. The company expects to save approximately CA$4M in expenses annualized following the sale of this facility.

  • Implemented a restructuring plan that will reduce Canadian non-manufacturing headcount by approximately 30%, reducing annualized expenses by approximately CA$3M beginning in Q3 2022.

  • Subsequent to the quarter, entered into a research support agreement with the Keck School of Medicine of University of Southern California to conduct a Phase 2 trial on the efficacy of THC and CBD to treat hospice-eligible patients diagnosed with dementia and experiencing agitation.

  • In July, the company was awarded a favorable summary judgment in the Ontario Court of Justice in connection with a supply agreement dispute in the amount of CA$9.8 million. This summary judgment and subsequent payment, and the conditional sale of the Australian facility, are expected to add over CA$16 million in cash to the balance sheet.

  • The company remains materially debt free and has outright ownership of its assets, including its GMP facility in Ontario.

  • Photo by Esteban Lopez on Unsplash

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