Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Medexus Pharmaceuticals Inc (MEDXF, Financial) reported its 10th consecutive quarter of positive operating income and 12th consecutive quarter of positive adjusted EBITA, demonstrating strong commercial execution.
- The company achieved a $6 million adjusted EBITA from $26.3 million in revenue, reflecting successful cost management and financial discipline.
- Rupall unit demand in Canada increased by 17% over the trailing 12-month period, contributing significantly to revenue.
- Treosulfan is expected to have a material positive impact on total revenue, with potential annual product-level revenue in the United States exceeding $100 million within five years post-launch.
- Medexus Pharmaceuticals Inc (MEDXF) has begun preparations for the potential approval of Treosulfan by the end of January 2025, including investments in personnel and infrastructure.
Negative Points
- Fiscal Q2 2025 revenue decreased to $26.3 million from $30.3 million in the same period last year, primarily due to reduced net sales of Rasuvo and declines in Ixinity sales.
- Operating income decreased to $1.6 million, down from $3.6 million in the same period last year.
- Ixinity unit demand in the United States decreased by 4% over the trailing 12-month period, posing a challenge to maintaining existing demand.
- Rupall is expected to face generic competition in early 2025, which may impact its revenue contribution.
- The company has $17.8 million of current debt, raising concerns about its ability to service this debt in the upcoming year.
Q & A Highlights
Q: Has the FDA asked any questions regarding Treosulfan since the NDA was resubmitted?
A: Ken D'entermont, CEO: The FDA has asked questions as part of the typical process, but they have been manageable. This makes us optimistic about a positive outcome.
Q: How many physicians will you initially be targeting for Treosulfan, and how many representatives will you use?
A: Ken D'entermont, CEO: We are targeting 175 institutions, with 11 of them conducting 25% of all transplants. We have reached out to all of them.
Q: Have you been speaking to payers about Treosulfan, and what is the expected pricing range?
A: Ken D'entermont, CEO: We expect Treosulfan to be priced similarly to Busulfan before it became generic. Our cost analysis shows strong benefits, and Canadian hospitals have been using it without reimbursement due to cost savings.
Q: What investments are being made to prepare for the Treosulfan launch?
A: Ken D'entermont, CEO: Investments are primarily in personnel, such as MSLs and field reimbursement managers, to strengthen our capabilities within institutions.
Q: How does Medexus plan to service its $17.8 million current debt?
A: Brendon Buschman, CFO: $3.5 million is due to our revolver, which we don't expect to repay immediately. We continue to generate good cash flow and are reevaluating our capital structure to optimize it for the Treosulfan launch.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
