MCUJF - Earnings call transcript Q3 2020

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Operator

Welcome to Medicure's earnings conference call for the quarter ended September 30, 2020. My name is Colin, and I'll be your conference operator for today's call. [Operator Instructions].

Before we proceed. I would like to remind everyone that this presentation contains forward-looking statements related to future results, events and expectations, which are made pursuant to the safe harbor provisions of the U.S. of Act Reform Litigation XXXX. Securities

statements. would known Forward-looking form described which from in risks uncertainties and forward-looking uncertainties, the company's annual XX-F. turn date we is being call conference that unknown cause this is XX, statements Dr. those Chief will November conference among the Albert conduct information those the to materially go Form involve could a Medicure differ company's and Executive to question-and-answer session. Later, Dr. now XXXX. and to over recent Officer I and and actual Friesen. others, risks Such the most Inc. in Please today's include, results like ahead, note Friesen, recorded, Please of

Albert Friesen

morning appreciate call. good today's on you, in participation Colin, your and to We call. and the all interest Thank

the $XX today Owens, Neil COVID-XX. the has modest good Joining A $X.X providers. as quarter for some are focus from James Net ZYPITAMAG healthcare quarter device was President news. AGGRASTAT This and medical and the the and growing while more CFO, but we Medicure the reducing the to the transitioned me ReDS change and that AGGRASTAT income directed which as due investment. Operating positive to was had experienced The vast in a with shifted business revenue marketing starting in Officer. EBITDA was stabilized, of Kinley; Dr. the SNP. from stabilization is debt. is positive the quarter franchise previous decline well see from Chief AGGRASTAT significant been value million, reported over the QX. from despite strongly the balance dip. and the $X.X to are at surgical COVID, in before still goal sensible from cash because The up retaining a $X.X were procedures patients of down that reduced to of operating strong substantially away the sheet has of The we of the previous quarter with has expenses, business quarters for ZYPITAMAG business with sales has no and balance to of but losses Medicure and of sales million, majority million. in million this the due marketing

mentioned, growth the As profits and at and AGGRASTAT is our for a to and products and ZYPITAMAG, have reality. few and of the in investments make present takes new main great past which in continues focus potential. to revenue and It the persistence on this programs the margins believe and provide coming the marketing quarters the quarters, will time We sales years.

results for Our value in Medicure sales build issuer to and energy, the future. a talent, record shareholders substantial quarter we of track over on provide to have the to a was James our review has provide call patient growing like company. way third turn as and some growing the and financial good stronger CFO, to the strong now experience we I'd a a bid past, near-term build cardiovascular a great Kinley, even an good been to believe color portfolio, product with XXXX. team

James Kinley

when during compared $XX,XXX in for to and The continue million, our expects for due XXXX. COVID-XX remainder product the before were page And company financial unless revenues $XXX,XXX for XXXX, analysis no focus and and on QX otherwise for Total an XX, grow Bert, third the couple revenues XXXX through $X.X as dollars $X,XXX by of QX months QX quick the of copy complete X The ReDS XX, financial now from the $X.X Canadian to everyone. from to to of from figures million, XXXX. and good higher key during as discounted for quarter of totaled items procedures as All presenter. note and pressures SNP net to XXXX. will Thank revenues is September for the you of the versions compared a highlights the from of a on the $X.X I prices of you from increased and morning, same ended a well you, quarter due website sodium through AGGRASTAT XXXX QX XXXX dollar in take previous quarter in and management's ended revenues reminder, be company our Investors A beyond. to were compared start. from AGGRASTAT the earned decrease for recorded of XX, Integrilin along The for are of with sedar.com. statements QX but copy selling from from statements from $X.X of a and million. of noted revenues financial statements obtained revenues September discussion I financial increase ZYPITAMAG in can to each XXXX, obtain performance revenue revenues XXXX. $XXX,XXX the due QX decrease decrease the company the September $X.X XXXX, in can QX XXXX, quarter will ended AGGRASTAT to million of There earned of XXXX primarily XXXX a performed to ZYPITAMAG QX Net of XXXX. generic net of compared million from pricing X from nitroprusside to quarter, same

in goods product from of gross approximately XXXX. ZYPITAMAG the margin cost $XXX,XXX of approximately cost in in to in the AGGRASTAT over QX This of impairment the and for cost to quarter sale cost to of XXXX. to related its September $XXX,XXX and the of intangible sold sold a from for from sold due the a significantly totaled of intangible approximately the in XXXX as result on $X.X spending XXXX. for of of reductions license XX%, ZYPITAMAG well compared year. would ReDS' $X,XXX. million during to those XXXX, costs, XX% sold as recorded totaled to strong product headcount includes royalties XXXX, pertaining ReDS' including prior COVID-XX $XXX,XXX for for XXXX. totaled same expenses $XXX,XXX attendance goods the amortization QX expenses customers, to a prior resulted from Turning goods quarter prior cost the and relating of ReDS amortization when during additionally, quarter products assets reductions, conference goods of pertained resulting for significant sold result QX for pertaining of cost of as to XX%. to decrease reductions X,XXX $XXX,XXX by the QX Selling The amortization down company of QX Removal for to assets same SNP is in of the reduction sold. $XX,XXX from prior year compared the And the year the acquisition the primarily selling implemented in and in of selling totaled XXXX. the totaled ZYPITAMAG, the XXXX travel gross QX margins QX goods $XXX,XXX to quarter

expenses. QX and the G&A XXXX, company of $X $XXX,XXX Canadian recorded Additionally, expenditures of selling a for expenses General government from cost QX million. of administrative $X.X recorded salary within during totaled resulting assistance emergency through XXXX, higher recovery than million subsidy wage QX the XXXX,

$XXX,XXX patent projects, against for challenge of from through emergency legal of the expenses. its defense XXXX QX QX assistance for as expenses the from in XXXX, for development salary wage AGGRASTAT. recorded company QX decrease. as a compared recovery subsidy of $XX,XXX of government were This this resulting resulting the offset expenditures well cost to a $XXX,XXX savings expenses higher within which company's Timing and During were Canadian G&A other development underway by various resulted XXXX. Research totaled

for primarily revenues and $XXX,XXX on QX to The by for which $X.XX company negative interest due related QX significantly XXXX The being per Adjusted through $XXX,XXX QX During company R&D the $XXX,XXX periods, government adjusted loss relates cash the of the of U.S. as consistent process in the XXXX, gains for by company's due royalty XXXX. of is company EBITDA to acquisition net periods. exchange relates to the loss lower and for operating by to again, quarter. to XXXX. the at assistance a for through -- the to $XX,XXX QX products is in company, $XXX,XXX share significant the payable which accretion for to increase for The and obligation. $X.XX respective salary offset with strategy in loss our operating foreign described each, recorded the higher exchange foreign projects loss it ZYPITAMAG QX to is This and offset focus of the offset the higher This QX exchange as low-cost was gain relative salary expect held the XXXX. change by acquisition research the company XXXX. which development the pertaining of for was changes for with held company's compares partially expenses. the balances QX costs the revenues developing to by $X,XXX and accretion change a recovery this. research share foreign exchange results $X cardiovascular per of dollar partially Medicure royalty compared of to quarter to of million approximately $XX,XXX and XXXX, the the on to decreased on losses the September expenses, $XXX,XXX, of with led XXXX. XXXX, of of recorded finance additional This recorded The to U.S. cost AGGRASTAT applies from probabilities QX in experienced expense net in end compared and development on both or during our expenses, of cash The reduction lower don't XXXX. to to of development expenditures rate compared EBITDA we income for in success, $X earlier million finance during the or change

company cash as of million December $XX XX, As XX, the of September to XXXX, approximately $XX.X had totaling million XXXX. compared

XX, had working capital at the from $XX.X networking decrease XX, September December capital million, at company of of As million. XXXX, XXXX, $XX.X a

an be call Chief there over Operating call turn as end to Officer, would I for will company of regarding the to at the our like a commentary that, opportunity additional questions and ask And Dr. as with financial and for some October, results today's Neil President whole. shares cancellation for to just course And the financial regarding over our the debt any you Owens, under Additionally, the XXX,XXX of its have I XXXX, September remind recorded in of of of not position. to common the cost $XXX,XXX. purchased want a on existing our company quarter, for issuer XX, you bid after did statement we the normal operations. end

Neil Owens

Thank you, good and everyone. morning, James,

manufacturing, The device of professionals meetings likely and in And to More impacted the of marketing it by meetings, most because rates. approach the the the team number effect or and distribution resumes. ReDS hospitals out the is from meetings selling Medicure's has has product continue to All the some impact market, based be was although ZYPITAMAG when The are procedures to perspective had on trial U.S. and There are sales QX. a sales tremendous interventional still to greater have costs. to There U.S. most with and benefit high impact health of hospitalization within virtual inventory, no this on virtual, a development. sales report relative carried on hospital we capital the to types in financial has QX, care on required. of hold. of provide particular products to through by U.S., which the has on AGGRASTAT continue and due compared increased be and focused virtual QX. of impact specifically, meetings region pressure far where put COVID-XX, ReDS effectiveness access the cost resulted as reduced First, which purchases on of varied COVID-XX continues the the change even on infection pandemic will facing an to

in in concerted review, information the from secure all Medicure's Following States. the announced in demand. investment through in transition effort the was the Medicure and and reduced revenue an United QX, continued result, succeed and distribution marketing accounts increase help sensible as an of a lead QX, to efficient sensible spending. seen of costs. And reduced a for this to there in device revenue in strategic we provided as supported AGGRASTAT, through Because sensible marketing be the a significantly possible increase agreement discussions with and on In Medicure be ReDS the company. of termination there QX, to selling was as the

in opinion effectively on X,XXX market. with than the renewed glycoprotein our remains U.S. preferred And leaders key focus AGGRASTAT We working have more inhibitor IIb/IIIa to hospitals.

costs continue to as pharmacists of doing AGGRASTAT IV In so. there the work to cost to savings We the also remains make which preferred both the recently make related order AGGRASTAT, hospital which antiplatelet Medicure Medicure, with we some more to reduce cost-effective by parties. of from bulk opportunities agent the approach purchases Portal, launched is distribution to hospitals for allows Direct directly

COVID-XX. treating We the product. to due is will which use of cycle and for investigator-sponsored complications for clinical of efficacy life help AGGRASTAT in indicated including market reports AGGRASTAT, with the that selective believe COVID-XX. the make the continue new investments showed AGGRASTAT preventing patients currently in to expand and can the indications, clinical promise we thrombotic evaluating not research Early extend

journal Dr. further Valgimigli, is thrombotic patients over by by Marco evaluating of platelet Recently, studies AGGRASTAT clinical superiority led cangrelor due the using rapidly the The study of an showed PCI. published study U.S.-based grant an Medicure compare COVID-XX. and from investigator-sponsored to efficacy Medicure. to randomized in in significant inhibition supported safety educational study complications was AGGRASTAT clinical FABOLUS-FASTER, AGGRASTAT terms unrestricted for sponsorship to However, was which of the in to of cangrelor assess undergoing preventing circulation, called first

the community. study within to recommend details. press recently lot Medicure's on continues published, a the further study only release cardiology of While for the reviewing generate discussion We

product no program device. prior our to fill There to patient access nationwide. direct-to-patient home a local authorizations a no In Medicure refill The program launch distribution Medicure place at savings patients increase of mobile is possible still straightforward in for including reminders fees attention there prescription to the to physicians who added is pharmacy as for prefer offers and ZYPITAMAG. also and pharmacy as cost, as to advantages access, and focused many prescribers the their program at QX, Turning is advantages making the on for their support is program card The ZYPITAMAG patients. pharmacy. ZYPITAMAG. delivery shifted announced for to their offers of added online

continue on We to high rate. prescribers, having refill focus new patients a new and adding

to price of accessibility in We for consumers are increasing explain our the media and benefits focus other to social on delivery. statins digital advertising home its ZYPITAMAG of and and terms

to increase sales team the potential. at Our and ZYPITAMAG's remains market driven fills motivated

impacted In COVID-XX QX. lower sodium pricing from to sales provide terms of we the extent to our generic due in products, than the revenue the multiple SNP believe generics, some pressure QX compared We to of modest and SNP. can or to company distribution. were continues still in-hospital nitroprusside, pricing XXXX. or to targeting abbreviated and targeted Medicure SNP, and were in competition of drug for that ANDA we believe this And use. generic ANDAs, to a improved additional applications, next develop are the ANDA through higher-margin cardiovascular less have in new will QX launch Despite

announced and had manufacture product in biosimilar products a Life to those contacts align product potential that and an agreement market focus and share with into sell U.S. to entered Medicure's QX, evaluate Medicure cardiovascular Medicure and license, would portfolio products with from The Sciences rights it a high agreement In to products. potential. with presented exclusive product. branded and will We ever market. to in although the there the market COVID-XX, the with for FDA grants supply well Reliance If cardiovascular have continue add biosimilar significant spending, this by small are been and cardiovascular we summary, European can challenges a we U.S., because first approved, by revenue, report Canada the ZYPITAMAG opportunity EBITDA QX. of significant remains and Union. still cardiovascular of our from Despite approved product In market in pleased control reduced the there positive become future AGGRASTAT, our

With to to know wants long-term a dedicated final like making comments. are team to Friesen revenue turn investors I'd the back Our Medicure Dr. and we and our success. growing for call that driven to that,

Albert Friesen

Neil. you, Thank

investment seen As showed new including the previous X mentioned the you've years. is stream in in positive breakeven flow and from on QX previously, a where substantial change the R&D we despite and losses. seen This products and some and QX revenue coming have coming quarters cash as COVID-XX some slight months or reported

be considerable basis And which so there has of will been the the learning, year market push and for the next of this year. remainder

are cardio strong thankful additional and a We balance for sheet. AGGRASTAT, the assets

will for goal My business drugs Board, the with a outlook management our want is and my been with up to question-and-answer employees for staff the growing our to for on to stable continued focus Thank cardiovascular revenue business to to And I our profitability. you. long-term of support that generating shareholders, future of of diversify it pipeline Colin, deep shareholders. asset our blessed the to And value and appreciation and interest. open as to portion. we've carefully I'll team express the the continue We a that, this moderator, continue base, investing over outstanding that that further Thank with. you turn always, grow build with to your and

Operator

[Operator Instructions].

So Management. your Sam comes Asset from first SER question Rebotsky from

Sam Rebotsky

and higher Was this the that was in spending the And this R&D? much we second the why we The in spent expect quarter. this to decored R&D forward going you -- talk on? we the And substantially R&D? spent what about quarter could in unevenness how spend this than of quarter

James Kinley

is I James. think -- this the first

with first have FDA, essentially in wiped significant why QX, we the QX the R&D note an In to much lower. was year. the we it. -- that's it was mean, next ANDA that mainly spending offset launched actually the early developed being be actually on I so expecting the refund product QX, item spend That's out in received to is which a The that from

a with that BLA AGGRASTAT have as also other we as any some well other Dr. If ongoing product Friesen, We RLS developments. announced thing...

Albert Friesen

provides That it.

between wasn't quarters, it flat a reflection. been The was R&D will continue. and has there you As fairly noticed, but a the difference spend

that which continue be Our third expenses We is and into of in 'XX. we would the -- did updates. -- biosimilar, addition but announce for quarter the further and quarter the made the as incurred, it others, the will progress some next, higher, a of bit might of provide were I some the was may say,

Sam Rebotsky

being because done, FABOLUS-FASTER about research? on -- as product? is positive on has indicated that far that and any money spending Medicure And as are we this Or this the product,

James Kinley

There was going QX relating was the some AGGRASTAT quarter, in occur the but FABOLUS-FASTER -- so of ongoing expense that third forward. did there expense of because in that some be there any won't to

Sam Rebotsky

Okay. out long to products Reliance now relationship, And that how take there? the does the get

Albert Friesen

couple take will of a It years.

Sam Rebotsky

Okay. Have any other us? we have? out we have been that of with or anything acquisitions excitement the cash products we to And seeking seen

Albert Friesen

That's a good question, Sam.

be X always. would reviewing anywhere almost always are and or products, negotiating entertaining, for We X X looking We to products. from

are So we to a now. review continuing few right

Sam Rebotsky

And that block one bunch individual? was it Was Or of block? Okay. a we purchases? from different it the stock that of was a purchased,

Albert Friesen

trade, know the don't it blinded happened. we're because we but Actually, from

So or the broker could don't have one accumulated a a whether it's few. few. know of accumulation We

Sam Rebotsky

stayed some have back to about more? thoughts our additional to go buy. that? we on buy if the stock And we would shares so an So expect to try and What's more low XXX,XXX

Albert Friesen

month. maximum there's we and course can maximum present can buy issuer bid, the a according Yes, At to there's buy, a that we normal would. time, per the we

the made -- at for that month. the so purchase the maximum So was

so there some more that will buying. And we be expect

Sam Rebotsky

Okay.

might an our COVID sales the this I as quarter. as permitting plans is the increased we increase? quarter? in fourth we the forward? we going not Has be to So we were the as Do Or expect the is happen? thought where previous far Or breakeven? what What's AGGRASTAT had breakeven would that

Albert Friesen

a we that Well, a we know resurgence been was so we see had would at to it can't But prior appear months. to there's last stabilization -- sort we And What AGGRASTAT. a thought in starting what don't to modest does we similar modest do increase of that continue bottom, we the seen next and predict it do -- two of to -- were COVID. COVID's the the we over some few what we quarters. see But going increase. the stabilized of next weeks

Operator

Instructions]. [Operator

don't Sam I anyone have we else. Rebotsky see other So again. from questions any

So Sam, go please ahead.

Sam Rebotsky

mean we the why -- is we charge Okay. to The cost That's what it. have charge that we high. the against I ZYPITAMAG, cost the against is have ZYPITAMAG? total Do

Albert Friesen

amortizing? we're That

Sam Rebotsky

Yes.

Albert Friesen

be -- and about that years over a would be it's There amount to that X X that, be amortize, million, expensed. the is would would that remaining the next we $XXX,XXX $X quarter about

Sam Rebotsky

Okay.

off the next So million the to be the with do X sales have get up we years. What would X charged do ZYPITAMAG? the over have $X to to to

Albert Friesen

ask as impact. helping day. -- and be what need up effects as doing It's that's has see now. physicians communication. they we from we've what ZYPITAMAG we're ourselves effects, the And to bit. a benefits as communicate right care of patients has great -- metabolized it we've patients and call, all because physicians things whether not the then And in both and side or to that Sam. statins. we we're was a We that what question, and the stepping difference a And patients for cleared we side and seems myalgia it's Yes. then the primary AGGRASTAT that differently, well with some less We that's a This is focusing try make because the every we're direct who others did measure patients, -- on focus to few and some marketing in this ZYPITAMAG have as us reported

Sam Rebotsky

off have is charge the to going it over or X amortization, be this to sooner, X we acceptable to years? Would

Albert Friesen

X years the quarter for of reasonable. now, for end and audit. product, and with getting our have plans I is we through end be we the projections and to the that of each X would year X the to analyze subject the each at the mean at -- and But the

Sam Rebotsky

there? did defending going And going? on Okay. What expenses? against is spend money as the of on And we legal far AGGRASTAT, kind that what how expenses legal is and as

Albert Friesen

situation, costs? don't competitive positively. Because the haven't. going of It's we know, do report We I specific

see, can expect changed, significant, but and will has you away that will soon. go we been As be it that that

Sam Rebotsky

right. guess, we All we down support fallen sounds them Hopefully, forward. doesn't the of been Medicure. convince as been have in do. want that significant the it's luck going good will good. stock marketplace this could because trying -- products. we everybody whatever expect cash us has out That have the -- Albert, has very I we And And that to much

Albert Friesen

you, Appreciate Thank Sam. it.

Operator

further no at this are questions There time. Please proceed.

Albert Friesen

Thank support you which to again And again, were up the the the that -- shareholder tremendous appreciate to with concerned value year-end and the will calling Sam issuer the We at next. call that appreciate the And and for questions. next interaction all that you. support bid. our shown shown are is normal Thank said, we forward course look think all have of company, price coming call, us and the also the those with Sam, as on of you, share thank shareholders. we

Operator

We this and Ladies today. disconnect and thank for your you ask call you participating gentlemen, lines. concludes conference please for your that

Medicure (MCUJF) 14 Nov 202020 Q3 Earnings call transcript