MediPharm Labs Corp., a pharmaceutical company specialized in precision-based cannabinoids, today announced its financial results for the three months ended March 31, 2022.
Q1 2022 – Select Operating Highlights
Continued leadership in global cannabis pharmaceuticals – poised to grow in U.S. market
- In Q1, MediPharm entered the United States pharmaceutical market with the completion of the FDA Drug Master File (the “DMF”) process for pure natural CBD APIs. A first for CBD by a Canadian company and the second natural CBD DMF at commercial scale in North America, the DMF allows for the registration of APIs with the FDA for commercial opportunities in pharmaceutical development, novel drugs, and generic drugs. The cannabis-based drug opportunity is predicted to be over USD$25 billion by 20251.
Further expanded international medical footprint with entry into U.K. and Brazilian markets
- Completed first delivery of products to the UK medical cannabis market. A market the Company will expand with new territory specific staff added in Q1.
- Received product authorization from Brazilian Health Regulatory Agency (Anvisa). This represents one of just 15 products approved for sale under Brazil’s medical access program and the only authorization for a Canadian product. The Company expects first shipments to be delivered following export approval, which is projected for the second half of 2022. Additional product authorizations have been submitted by the Company. While slow to develop to date, the Company expects that Brazil, with a population of over 200 million people, will evolve into an important global medical market.
Ongoing growth in Canadian distribution, driven by new product launches and Shelter Cannabis integration
- In March 2022, the Company closed the acquisition of Shelter Cannabis, adding highly reputable, specialty dried flower and pre-roll products to its portfolio. This transaction filled a gap in MediPharm’s Canadian product offering and opened the opportunity for the Company to expand its current international flower business. First deliveries to provincial distributors began May 10, 2022.
- The Company completed deliveries of its first CBG products in ingestible oil and vapable formats as well as its first water soluble cannabinoid SKU. Deliveries to the provinces began in late March 2022 with sales to retailers initiated during Q2.
Experienced pharma and med tech executive David Pidduck appointed CEO of the Company
- Subsequent to the end of Q1, MediPharm announced that it had appointed David Pidduck as Chief Executive Officer and Director of the Company. David brings more than 20 years of proven senior leadership experience to MediPharm, including serving as President and CEO of a Canadian pharmaceutical company, where he was also a member of the board of directors. Over his career, Mr. Pidduck has been involved in the successful ground-up commercialisation of several products in both Canadian and international markets and brings a track record of both organic execution as well as M&A and integration expertise to the Company.
Solid balance sheet, materially debt free, outright ownership of key assets
- The Company remains materially debt free and has outright ownership of its assets, including two GMP facilities; one in Ontario, Canada and the other in Victoria, Australia.
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Management Commentary David Pidduck, CEO, MediPharm Labs commented, “Since joining MediPharm as CEO in late April, I have been impressed with the quality of the team, as well as the foundation for growth that has already been established. In my more than 20 years of experience in the Pharma and Medtech spaces, I have successfully led several companies through transformative periods, and I see a real and achievable opportunity for MediPharm to attain a leadership position in this sector globally, with the growth and profitability to match.”
Mr. Pidduck continued, “The MediPharm team has already opened sales channels into key markets that, with the right application of strategy and execution, are primed to deliver meaningful organic growth and ROI. In the current environment, I also expect to see an expansion in the M&A opportunity set as weaker players come under growing pressure. With a strong balance sheet, world class facilities with spare capacity, an expanding sales force and a toehold in key global markets, MediPharm is well-positioned to leverage a prudent M&A strategy into accretive growth. I am very confident that with the right combination of short and long-term strategies, we can turn this company to profitability and create significant value for shareholders.”
Greg Hunter, CFO, MediPharm Labs added, “While Q1 is a seasonally slower period, we expect our top-line to improve beginning in Q2, as seasonality dissipates, the distributor inventory draw-downs from Q1 reverse, and recent investments in sales and marketing resources, and new, innovative products, begin to pay off. The brands we acquired as part of our acquisition of Shelter Cannabis’ IP portfolio and that we are now manufacturing out of our Barrie facility, began shipping in May and will contribute to revenue beginning in Q2. MediPharm is on solid financial footing, having exited the quarter with $28.3 million in cash, materially debt free and outright ownership of its key facilities.”
Q1 2022 Summary – Financial Summary
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March 31, 2022 |
March 31, 2021 |
December 31, 2021 |
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$’000s |
$’000s |
$’000s |
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Revenue |
4,877 |
5,495 |
5,743 |
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Gross profit |
(403) |
(680) |
(4,973) |
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Adjusted Gross Profit3 |
(403) |
(680) |
(1,068) |
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Net loss |
(7,457) |
(13,867) |
(21,957) |
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Adjusted EBITDA2 |
(5,684) |
(6,159) |
(6,573) |
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Adjusted Gross Profit and Adjusted EBITDA are non-IFRS measures. See the Non-IFRS Measures section of this news release. |
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets.
