MediPharm Labs Corp., a pharmaceutical company specialized in precision-based cannabinoids, today announced its financial results for the three and twelve months ended December 31, 2021.
2021 – Select Operating Highlights
Expanded international footprint
- International sales more than doubled in 2021, to $9.5 million (44% of Revenue), driven by shipments to seven customers in Germany, including the completion of first shipments to STADA Arzneimittel AG, a leading European Consumer Healthcare and Generics company with a product presence in 120 countries.
- Germany will continue to be a priority market for MediPharm. It is already the largest medical market in the world, and is expected to reach a market value of €7.7 billion by 2028i.
Grew Canadian distribution
- The Company significantly expanded its sales force, which led to new listings in all provinces including the Ontario Cannabis Store, AGLC, BCLG and entry into Québec and New Brunswick.
- The Company’s provincial sales grew 18% during 2021, to $7.4 million, primarily driven by sales of new and innovative products. Q4 provincial sales grew to $2.8 million in Q4 from $1.2 million in Q3.
Introduced new, innovative products in the Canadian and international markets
- In Canada, the Company launched new products including CBD 100 Ultra Formula Oil, THC30 Plus Formula Oil, CBN1:2 Nighttime Formula, 1:2 Relax Formula Oil, and a Northbound High CBN and High CBD vape cartridge.
- In Q4, MediPharm’s cannabigerol (“CBG”), product was accepted for sale by provincial distributors, with initial deliveries planned for Q1 2022.
- Subsequent to the end of the year, the Company announced the acquisition of Shelter Cannabis, adding highly reputable, specialty dried flower and pre-roll products to its portfolio. This transaction fills a gap in the MediPharm Canadian product offering while leveraging existing infrastructure and overhead, and opens the opportunity to expand its current international flower business.
- MediPharm began to sell EU GMP certified dried flower in the international market during 2021, and it accounted for $3.5 million in revenue.
Continued progress in growing precision-based cannabinoid market
- Received a Cannabis Drug Licence and a Good Manufacturing Practices (“GMP”) Drug Establishment Licence from Health Canada.
- Entered into a research partnership master agreement with McMaster University to develop drugs containing cannabis candidates, and began to provide clinical trial material.
- Began to ship Active Pharmaceutical Ingredients (“APIs”), to two well-known pharmaceutical companies during the year, generating early revenue in a business that is expected to grow significantly over the next several years.
- Subsequent to the end of the fiscal year, the Company entered the U.S. pharmaceutical market with the submission of an FDA Drug Master File (“DMF”) for pure natural CBD APIs.
Solid balance sheet, no debt, outright ownership of key assets
- Completed the payment of all outstanding convertible debt. The Company is materially debt free and has outright ownership of its assets, including two GMP facilities; one in Ontario, Canada and the other in Victoria, Australia.
Management Commentary
Bryan Howcroft, CEO, MediPharm Labs commented, “MediPharm achieved several key strategic objectives during 2021. Our team opened key new markets both domestically and internationally, while increasing sales and marketing efforts to execute on these opportunities. Innovation is part of the Company’s DNA, and the launch of new products through the year resulted in both growth in domestic sales into year-end, as well as a win for the Company’s CBD dominant oil line at the 2021 Kind Awards, where it was named CBD Brand of the Year. When I joined MediPharm at the end of 2021, I saw a company with a solid foundation, positioned to be one of very few winners in the international cannabinoid pharma space. The team’s progress against this objective during the year, culminating in the recent filing of a DMF with the U.S. FDA, reinforces that this company has the sophistication it needs to become an important supplier as this opportunity continues to develop.”
Greg Hunter, CFO, MediPharm Labs added, “MediPharm is on solid financial footing, having exited the year with $34 million in cash, no debt and outright ownership of its key facilities. In Q4 we generated sequential growth in key focus areas such as domestic white label sales, and sales into the German market. We expect to continue building on this progress through 2022, leveraging recent investments in sales and marketing resources in the Canadian market, and the growth of the German and EU markets, overall. Over the next 12 months, we will continue to advance the Company’s core focus on building a leading global precision-based cannabinoid business, while balancing that longer term focus with a commitment to innovation, revenue growth and progressing toward profitability.”
2021 – Financial Summary
|
Year ended |
Three-months ended |
|||||
|
December 31, |
December 31, |
September 30, |
June 30, 2021 |
March 31, 2021 |
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|
$’000s |
$’000s |
$’000s |
$’000s |
$’000s |
||
|
Revenue |
21,711 |
5,743 |
5,401 |
5,072 |
5,495 |
|
|
Gross profit |
(15,246) |
(4,973) |
(1,860) |
(7,733) |
(680) |
|
|
Adjusted Gross Profit* |
(4,520) |
(1,068) |
(1,354) |
(1,418) |
(680) |
|
|
Net loss |
(54,801) |
(21,766) |
(7,356) |
(11,812) |
(13,867) |
|
|
Adjusted EBITDA* |
(26,684) |
(6,573) |
(6,518) |
(7,434) |
(6,159) |
|
Leadership Change
Warren Everitt and MediPharm Labs have mutually agreed to end the role of CEO Asia Pacific, a position held by Warren. MediPharm Labs would like to thank Warren for his significant contribution to the business over the past 5 years and wishes him all the best in his future endeavours.
