Medexus Pharmaceuticals’ Earnings Call Highlights GRAFAPEX Success

Medexus Pharmaceuticals ((TSE:MDP)) has held its Q4 earnings call. Read on for the main highlights of the call.

The recent earnings call for Medexus Pharmaceuticals conveyed a mixed sentiment, reflecting both optimism and challenges. The company celebrated the successful launch of GRAFAPEX and highlighted its strong financial discipline and improved cash position as significant positives. However, concerns were raised due to decreases in net revenue, negative net income for the quarter, and challenges such as Rupall’s generic competition. While the focus on GRAFAPEX’s strong launch suggests optimism, it is tempered by current declines in other areas.

Successful Launch of GRAFAPEX

Medexus Pharmaceuticals reported a successful launch of GRAFAPEX, achieving $0.6 million in product-level revenue for fiscal Q4 ’25 and preliminary estimates indicating over $2.5 million in fiscal Q1 ’26. This strong initial market uptake underscores the product’s potential in the market.

Strong Financial Discipline

The company showcased its strong financial discipline with a record adjusted EBITDA of $20.2 million and a record net income of $2.2 million for fiscal year ’25. This achievement was primarily attributed to ongoing financial discipline, which has been a cornerstone of Medexus’s strategy.

Positive Market Response to Treosulfan

Treosulfan’s market exclusivity in Canada resulted in a 70% growth in unit demand over the trailing 12-month period ending March 31, 2025. This positive market response highlights the product’s strong position in the Canadian market.

Cash Position Improvement

Medexus significantly improved its cash position, with cash on hand increasing to $24 million as of March 31, 2025, compared to $5.3 million the previous year. This improvement was driven by a public offering and strong operating cash flow.

Adjusted EBITDA Growth

The fiscal year ’25 saw an adjusted EBITDA of $20.2 million, up from $19.5 million in fiscal year ’24. This growth reflects the company’s ability to maintain profitability despite market challenges.

Decreased Net Revenue

Fiscal Q4 net revenue was reported at $24.8 million, a decrease from $26 million for the same period last year. This decline in revenue is a point of concern for the company.

Negative Net Income for Fiscal Q4

Medexus reported a negative net income of $0.6 million for fiscal Q4, a decrease from a positive $0.8 million for the same period last year, highlighting financial challenges in the quarter.

Impact of GRAFAPEX Investments

The investments in GRAFAPEX personnel and infrastructure led to a decrease in fiscal Q4 ’25 adjusted EBITDA to $2.3 million from $4.4 million the previous year. This reflects the company’s strategic focus on GRAFAPEX despite short-term financial impacts.

Rupall Faces Generic Competition

Rupall’s market exclusivity expired in January ’25, leading to the onset of generic competition. This development poses a challenge to maintaining Rupall’s market share.

Slight Decline in IXINITY Demand

IXINITY unit demand in the United States increased by only 1% over the trailing 12-month period ending March 31, ’25. The company expects stable or slightly decreasing demand moving forward.

Forward-Looking Guidance

Medexus Pharmaceuticals provided detailed financial guidance during the earnings call, emphasizing the successful commercialization of GRAFAPEX in the U.S. The company expects GRAFAPEX to be accretive to quarterly operating cash flows by fiscal Q4 ’26. Medexus also outlined plans for GRAFAPEX’s continued integration into healthcare facilities, with 34 of 180 transplant centers already ordering the product. The company highlighted a strong market response with positive formulary inclusion from multiple commercial players.

In summary, Medexus Pharmaceuticals’ earnings call presented a mixed sentiment with both positive developments and challenges. The successful launch of GRAFAPEX and strong financial discipline are key highlights, while decreased net revenue and negative net income pose concerns. The forward-looking guidance reflects optimism for GRAFAPEX’s future contributions, underscoring the company’s strategic focus on this product.