Medexus Pharmaceuticals ((TSE:MDP)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Medexus Pharmaceuticals recently held its Second Fiscal Quarter 2026 earnings call, where the sentiment was a mix of optimism and caution. The company celebrated the successful launch and adoption of its new product, GRAFAPEX, which showed promising improvements in reimbursement and manufacturing cost reductions. However, challenges were noted in declining revenue, adjusted EBITDA, and demand for key products due to competitive pressures.
Successful Launch of GRAFAPEX
GRAFAPEX has exceeded prelaunch expectations, marking October 2025 as the strongest month for patient demand. The product generated $6.2 million in net revenue during the first six months and is anticipated to positively impact quarterly operating cash flows by fiscal Q3 2026.
Positive Reimbursement Developments
Starting October 1, 2025, GRAFAPEX procedures under Medicare became eligible for additional reimbursement through the NTAP program. This development is expected to facilitate the product’s adoption and utilization significantly.
Gross Margin Improvement
Medexus reported a gross margin of 55.7% for fiscal Q2 2026, up from 53.7% in the same period last year, reflecting improved operational efficiency.
Cost Reduction in IXINITY Manufacturing
The company successfully reduced the cost of goods for IXINITY by 30% since fiscal Q1 2021, showcasing effective cost management strategies.
Net Revenue Decline
Despite the successes, Medexus faced a net revenue decline, reporting $24.7 million for fiscal Q2 2026, down from $26.3 million in the previous year.
Decrease in Adjusted EBITDA
Adjusted EBITDA also saw a decrease, with fiscal Q2 2026 figures at $4.4 million compared to $6 million in the same period last year.
Rupall Facing Generic Competition
Rupall experienced a significant 58% decrease in unit demand over three months due to generic competition following the loss of regulatory exclusivity.
Decreased Demand for Rasuvo and Metoject
The demand for Rasuvo and Metoject decreased by 2% and 9% respectively in the U.S. and Canada over the trailing 12 months.
Forward-Looking Guidance
Medexus remains optimistic about future growth, particularly with GRAFAPEX. The company engaged with 83% of U.S. transplant centers, with a significant portion reordering the product. GRAFAPEX is expected to contribute positively to cash flows by fiscal Q3 2026, with anticipated patient demand ranging from $3 million to $4 million. The NTAP program’s reimbursement is projected to further enhance adoption.
In conclusion, Medexus Pharmaceuticals’ earnings call reflected a balanced outlook, with notable achievements in product launches and cost management, countered by challenges in revenue and competition. The company is poised for growth, with GRAFAPEX playing a pivotal role in its future strategy.