Medexus Pharmaceuticals Inc. (the “Company” or “Medexus”)
(TSX-V: MDP, OTCQB: PDDPF) today provided an update on its
business in light of the recent transformative acquisition of the
commercial hematology asset, IXINITY®, the resulting
re-organization and alignment of Medexus’ U.S.-based business and
the Company’s ongoing response to the COVID-19 pandemic.
With the Company’s acquisition of Aptevo
BioTherapeutics LLC (the “Acquisition”), which
owns the IXINITY® asset, from Aptevo Therapeutics Inc.
(“Aptevo”) having closed on February 28, 2020, the
fiscal fourth quarter ending March 31, 2020 (“Q4
2020”) is the first quarter that includes revenue for
Medexus from sales of IXINITY®. On May 13, 2020, Aptevo announced
its financial results for its quarter ended March 31, 2020, which
included two months of pre-Acquisition sales of IXINITY® by Aptevo
and one post-Acquisition month of the 2% royalty Medexus pays to
Aptevo on sales of IXINITY® by Medexus. Aggregate preliminary
unaudited sales estimates for IXINITY® during Q4 2020 totaled U.S.
$8.3 million, which represents an 18.5% year over year increase.
Approximately 85% of those IXINITY® sales accrued to the benefit of
Medexus post-Acquisition and as such, the addition of IXINITY® was
highly accretive to Medexus for the quarter. The revenues from
IXINITY® for March 2020 are in line with the Company’s
expectations, including that the majority of the quarterly revenue
from IXINITY® would be recognized in the final month of Q4 2020.
The Company expects to announce its full audited financial results
for Q4 2020 and for the fiscal year ended March 31, 2020 in the
normal course before the end of June 2020, but the Company felt it
was important to provide this context to its shareholders in light
of the disclosures provided by Aptevo and given the timing and
impact to the Company of the Acquisition.
The integration of IXINITY® is progressing in
line with the Company’s expectations, and the Company sees
significant potential for further growth in sales of the product as
the Company leverages its integrated and expanded sales force in
the U.S. As part of the integration process, effective immediately,
Michael Adelman has been appointed as the General Manager of
Medexus’ U.S. operations. Mr. Adelman joined Medexus from Aptevo
immediately following the completion of the Acquisition. This
transition reflects the Company’s expectation that IXINITY® will be
its core growth driver in the U.S. and the desire to transition to
a strongly sales-driven organization. Also effective immediately,
Terri Shoemaker will no longer serve as the Company’s President,
U.S. Operations. Commenting on the transition, Ken d’Entremont,
Chief Executive Officer of Medexus stated, “Mike brings more than
25 years of industry-specific experience and a proven track record
of sales-driven performance to the organization. We are pleased to
welcome Mike to our senior leadership team in this newly created
role. At the same time, I want to thank Terri for her leadership
and critical role in the formation and development of the Rasuvo™
business in the U.S.”
As announced on May 7, 2020, the Company also
completed its financing package with MidCap Financial Trust
(“MidCap Financial”) in respect of a secured asset-based revolving
credit facility having a term of 38 months (the “ABL Facility”).
The ABL Facility features a U.S. $20 million revolving commitment
and uncommitted U.S. $10 million accordion. Borrowings under the
ABL Facility bear interest at a rate of one-month LIBOR plus 3.95%,
subject to a LIBOR floor of 1.50%. The financing package with
MidCap Financial allowed the Company to finance the Acquisition
without the issuance of additional shares of the Company.
Finally, the Company continues to work
diligently to assess and address the risks and operational
challenges posed by the COVID-19 pandemic. While the situation
continues to evolve, the Company believes it has largely been
successful in conducting business as usual to the extent possible.
To date, none of the Company’s employees have reported testing
positive for the COVID-19 virus, and management continues to
carefully monitor the Company’s supply and downstream network.
Medexus’ supply chain remains secure and the Company is not aware
of any disruption to the supply of any of its products to the
patients who depend on them. Ken d’Entremont, commented, “I would
like to take this opportunity to thank our dedicated staff who
continue to work hard to navigate Medexus through this uncharted
territory, while also remaining committed to slowing the spread of
COVID-19 through physical distancing efforts.”
Peter van der Velden, Chairman of the Board of
Medexus commented, “Medexus’ business remains strong and is well
positioned to emerge even stronger as the economy re-opens. We
continue to generate steady growth across our key product lines
and, despite the disruption from the COVID-19 pandemic, our sales
teams have continued to be remarkably productive by finding new
ways to connect creatively and productively with clinicians and
patients. As much of our portfolio is used to treat chronic
conditions, we continue to see strong demand for our products,
including our new hematology product, IXINITY®. While continuing to
be very disciplined about how we manage our cash, we are excited
about the expanding list of compelling business development
opportunities our team is evaluating.”
About Medexus
Medexus is a leading specialty pharmaceutical
company with a strong North American commercial platform. The
Company’s vision is to provide the best healthcare products to
healthcare professionals and patients, through our core values of
Quality, Innovation, Customer Service and Teamwork. Medexus is
focused on the therapeutic areas of auto-immune disease, hematology
and allergy. The Company’s leading products are: IXINITY®, an
intravenous recombinant factor IX therapeutic for use in patients
12 years of age or older with Hemophilia B – a hereditary bleeding
disorder characterized by a deficiency of clotting factor IX in the
blood, which is necessary to control bleeding; Rasuvo™ and
Metoject®, a unique formulation of methotrexate (auto-pen and
pre-filled syringe) designed to treat rheumatoid arthritis and
other auto-immune diseases; and Rupall®, an innovative allergy
medication with a unique mode of action.
For more information, please
contact:
Ken d’Entremont, Chief Executive OfficerMedexus
Pharmaceuticals Inc.Tel.: 905-676-0003E-mail:
ken.dentremont@medexus.com
Roland Boivin, Chief Financial OfficerMedexus
Pharmaceuticals Inc.Tel.: 514-762-2626 ext. 202E-mail:
roland.boivin@medexus.com
Investor Relations
(U.S.):
Crescendo Communications, LLCTel:
+1-212-671-1020Email: mdp@crescendo-ir.com
Investor Relations
(Canada):
Frank CandidoDirect Financial Strategies and
Communication Inc.Tel: 514-969-5530E-mail:
frank.candido@medexusinc.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
READER ADVISORIES
Forward Looking Statements
Certain statements made in this press release
contain forward-looking information within the meaning of
applicable securities laws (“forward-looking
statements”). The words “anticipates”, “believes”,
“expects”, “will”, “plans” and similar expressions are often
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words.
Specific forward-looking statements contained in this news release
include, but are not limited to, statements with respect to the
Company’s expectations with respect to the revenues of the Company
from sales of the IXINITY® asset for the quarter ended March 31,
2020, the integration of the IXINITY® asset in the consolidated
Company and the expected synergies and growth opportunities
resulting therefrom, the potential impact of the COVID-19 pandemic
and the Company’s response thereto, and business development
opportunities being evaluated by the Company. These statements are
based on factors or assumptions that were applied in drawing a
conclusion or making a forecast or projection, including
assumptions based on historical trends, current conditions and
expected future developments. Since forward-looking statements
relate to future events and conditions, by their very nature they
require making assumptions and involve inherent risks and
uncertainties. The Company cautions that although it is believed
that the assumptions are reasonable in the circumstances, these
risks and uncertainties give rise to the possibility that actual
results may differ materially from the expectations set out in the
forward-looking statements. Material risk factors include: future
capital requirements and dilution; intellectual property protection
and infringement risks; competition (including potential for
generic competition); reliance on key management personnel; the
Company’s ability to implement its business plan; the Company’s
ability to leverage its United States and Canadian infrastructure
to promote additional growth, including with respect to the
infrastructure of Medexus Inc., Medac Pharma, Inc. and Aptevo
BioTherapeutics LLC and the potential benefits the Company expects
to derive therefrom; regulatory approval by the Canadian and United
States health authorities; product reimbursement by third party
payers; patent litigation or patent expiry; litigation risk; stock
price volatility; government regulation; potential third party
claims; risks related to the COVID-19 pandemic and any other risk
factors set out in the Company’s most recent MD&A under the
heading “Risk Factors and Risk Management” and elsewhere in the
Company’s other disclosure documents filed with the applicable
Canadian securities regulators from time to time. With respect to
the COVID-19 pandemic, third parties on which the Company relies,
including its manufacturers, suppliers, licensors and/or
distributors, have operations around the world and are exposed to a
number of global and regional risks outside of the Company’s
control, including but not limited to those related to the COVID-19
pandemic. As the COVID-19 pandemic continues or increases in
severity or results in expanded or prolonged travel, commercial or
other restrictions, it could adversely impact the Company by
causing operating, supply or other disruptions, including creating
difficulties in the execution of the Company’s marketing plans. In
addition, liquidity and volatility, credit availability and market
and financial conditions generally could change at any time as a
result. Any of these events, in isolation or in combination, could
materially and adversely affect the Company’s business and could
have a material adverse effect on the Company and its financial
results. Given these risks, undue reliance should not be placed on
these forward-looking statements, which apply only as of the date
hereof. Other than as specifically required by law, the Company
undertakes no obligation to update any forward-looking statements
to reflect new information, subsequent or otherwise.
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