Hls Therapeutics ((TSE:HLS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, HLS Therapeutics presented a mixed performance, showcasing strong adjusted EBITDA growth and a solid financial position, yet facing challenges in revenue growth and competitive pressures, particularly in the Clozaril business. Despite significant achievements, the decline in revenue and lower-than-expected growth in certain areas painted a balanced sentiment among stakeholders.
Strong Adjusted EBITDA Growth
HLS Therapeutics reported a robust increase in adjusted EBITDA, reaching $4.9 million in Q3, marking a 19% year-over-year growth. Year-to-date, the adjusted EBITDA stood at $13.9 million, reflecting a 25% increase compared to the same period in 2024. This growth underscores the company’s effective cost management and operational efficiencies.
Vascepa Prescription Growth
Vascepa, one of HLS Therapeutics’ key products, saw a significant 24% growth in prescriptions year-to-date, with Q3 being its most profitable quarter since launch. This growth highlights the product’s increasing acceptance and market penetration.
Debt Reduction and Financial Strengthening
The company made significant strides in reducing its debt, bringing net debt down to $43.5 million from $50 million at the end of 2024. Additionally, HLS secured a new favorable credit agreement, further strengthening its financial position.
Bempedoic Acid Launch Preparations
Preparations are underway for the Q2 2026 launch of bempedoic acid, which is expected to address a large market in Canada. This strategic move is anticipated to enhance HLS Therapeutics’ product portfolio and drive future growth.
Revenue Decline
Total revenue for Q3 was reported at $13.5 million, a decrease from $14.1 million in the same quarter last year. Year-to-date revenue also saw a slight decline, from $41.1 million to $40.3 million, reflecting challenges in maintaining revenue growth.
Clozaril Revenue Decline
The Canadian Clozaril business is projected to decline by 4% to 5% for the full year, attributed to competitive pressures and inventory fluctuations. This decline poses a challenge for HLS in maintaining its market share in this segment.
Vascepa Revenue Growth Below Expectations
While Vascepa prescriptions grew significantly, its revenue growth is expected to be in the mid-teens for the full year, which is below the previously anticipated range of 18% to 26%. This adjustment reflects the competitive landscape and market dynamics.
Forward-Looking Guidance
Looking ahead, HLS Therapeutics aims for an adjusted EBITDA growth range of 17% to 23% for the full year, translating to $19.5 million to $20.5 million. The company anticipates a consolidated revenue estimate of $55 million to $56 million. With the planned launch of bempedoic acid in Q2 2026, HLS expects to leverage operational synergies with Vascepa and maintain financial discipline while exploring strategic growth opportunities.
In summary, the earnings call from HLS Therapeutics highlighted a balanced sentiment with strong adjusted EBITDA growth and financial strengthening, despite challenges in revenue growth and competitive pressures. The company remains focused on strategic initiatives, including the upcoming launch of bempedoic acid, to drive future growth and maintain its market position.