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Medicure Inc (TSE:MPH)
:MPH
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Medicure
(MPH)
49Neutral
Medicure (MPH) vs. S&P 500 (SPY)
Market Cap
C$7.10M
Dividend YieldN/A
Average Volume (3M)1.09K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-8.09%
EPS Growth-285.97%
CountryCA
Employees25
SectorHealthcare
Sector Strength77
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.19
Shares Outstanding10,436,313
10 Day Avg. Volume550
30 Day Avg. Volume1,088
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.44
Price to Cash Flow (P/CF)-72.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Medicure Business Overview & Revenue Model
Company DescriptionMedicure (MPH) is a pharmaceutical company focused on the development and commercialization of innovative therapeutic solutions. Operating primarily within the healthcare and pharmaceutical sectors, Medicure specializes in cardiovascular medicine, offering a range of prescription drugs designed to improve patient outcomes. The company's core products include branded pharmaceutical offerings that are utilized by healthcare professionals to treat various heart-related conditions.
How the Company Makes MoneyMedicure makes money through the sale of its pharmaceutical products to healthcare providers, pharmacies, and hospitals. The company's revenue model is primarily based on the direct sale of its branded cardiovascular medications. Key revenue streams include product sales in North America, particularly in the United States where it has established a significant market presence. Additionally, Medicure engages in strategic partnerships and licensing agreements with other pharmaceutical companies to expand its product distribution and enhance its market reach, further contributing to its earnings.
Medicure Financial Statement Overview
Summary
Medicure is experiencing significant profitability challenges with negative EBIT and net income, as well as declining revenues. The balance sheet is a relative strength due to low leverage and a strong equity position, but the negative return on equity and poor cash flow highlight inefficiencies that need addressing.Income Statement
The income statement indicates challenges with profitability, as evidenced by negative EBIT and net income across the recent periods. Despite a gross profit margin of 56.4% for TTM, the net profit margin is negative at -9.65%. Revenue has also declined by 2.81% compared to the previous year. These factors highlight potential issues in cost management and revenue generation.45
Neutral
Balance Sheet
The balance sheet shows a solid equity position with an equity ratio of 70.14% for TTM, suggesting financial stability. The debt-to-equity ratio is low at 0.046, indicating limited leverage. However, the return on equity is negative at -10.18%, which raises concerns about the company’s ability to generate profit from its equity base.65
Positive
Cash Flow
Cash flow analysis reveals a concerning picture, with negative free cash flow and operating cash flow in the TTM period. The operating cash flow to net income ratio is negative, aligning with the profitability challenges. There is a significant decline in free cash flow growth rate, suggesting challenges in cash generation.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 21.08M | 21.69M | 23.07M | 21.74M | 11.61M | 20.17M | Gross Profit |
| 11.90M | 13.99M | 16.07M | 12.71M | 5.13M | 12.90M | EBIT |
| -3.83M | -854.00K | 1.31M | -574.00K | -7.29M | -10.73M | EBITDA |
| -1.59M | 1.27M | 3.44M | 2.39M | -4.04M | -17.72M | Net Income Common Stockholders |
| -2.03M | -922.00K | 1.36M | -727.00K | -6.84M | -19.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 71.89M | 6.37M | 4.86M | 3.69M | 2.72M | 12.96M | Total Assets |
| 103.76M | 28.06M | 29.90M | 28.41M | 34.05M | 42.28M | Total Debt |
| 0.00 | 544.00K | 849.00K | 1.17M | 1.45M | 1.09M | Net Debt |
| -24.14M | -5.83M | -4.01M | -2.52M | -1.27M | -11.88M | Total Liabilities |
| 20.17M | 8.16M | 8.89M | 10.00M | 14.91M | 15.34M | Stockholders Equity |
| 83.59M | 19.90M | 21.00M | 18.41M | 19.15M | 26.94M |
| Cash Flow | Free Cash Flow | ||||
| -424.00K | 1.81M | 1.52M | 3.17M | -2.24M | -28.49M | Operating Cash Flow |
| -5.00K | 2.08M | 1.83M | 3.99M | -2.24M | -14.64M | Investing Cash Flow |
| -419.00K | -270.00K | -310.00K | -2.69M | -7.24M | 34.28M | Financing Cash Flow |
| -322.00K | -297.00K | -355.00K | -316.00K | -766.00K | -30.26M |
Medicure Technical Analysis
Negative
0.68
Price Trends
0.80
Negative
0.86
Negative
0.95
Negative
Market Momentum
<0.01
Positive
43.70
Neutral
41.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MPH, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.80, and below the 200-day MA of 0.95, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MPH.
Medicure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $583.17M | 133.18 | 0.53% | ― | 13.13% | ― | |
52 Neutral | C$135.76M | ― | -23.20% | ― | -8.80% | 26.77% | |
49 Neutral | C$7.10M | ― | -9.72% | ― | -8.09% | -285.97% | |
48 Neutral | $6.36B | 1.14 | -49.01% | 2.63% | 17.12% | 1.49% | |
45 Neutral | $101.16M | ― | ― | 6.07% | 80.33% |
* Healthcare Sector Average
Performance Comparison
TSE:MPH
Medicure
0.68
-0.47
-40.87%
TSE:GUD
Knight Therapeutics
5.86
0.32
5.78%
TSE:TH
Theratechnologies
2.20
0.27
13.99%
TSE:HLS
HLS Therapeutics Inc
4.27
-0.77
-15.28%
Medicure Earnings Call Summary
Earnings Call Date: Nov 25, 2024 | % Change Since: -24.44% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with notable improvements in net income and revenue growth for ZYPITAMAG and Marley Drug, offset by declines in AGGRASTAT revenue and a negative adjusted EBITDA. The company's strategic focus on new drug development and legal settlement income is promising, despite challenges in pricing competition and insurance coverage.Highlights
Net Income Improvement
The net income for Q3 2024 was $680,000 or $0.07 per share, compared to a loss in the previous quarter and a net income of $84,000 in Q3 of the previous year. This improvement was largely due to a settlement payment.
Increase in ZYPITAMAG Revenue
Net revenues from ZYPITAMAG increased to $553,000 from $398,000 in the previous year, attributed to greater utilization through insurance formularies, specifically Medicare Part D.
Growth in Marley Drug Revenue
Marley Drug's net revenue increased to $2.7 million, up from $2.2 million the prior year, driven by a change in product mix and increased sales of ZYPITAMAG.
Successful Legal Settlement
The company recorded other income of $1.9 million due to a legal settlement with its contract development and manufacturing organization.
Launch of New Drug Development Initiatives
Medicure announced the development of a novel drug related to MC-1 with significant market potential and the acquisition of patents for new chemical entities.
Lowlights
Decrease in AGGRASTAT Revenue
Net revenues from AGGRASTAT decreased to $1.9 million from $2.4 million the previous year, primarily due to pricing pressures from increased competition.
Negative Adjusted EBITDA
Adjusted EBITDA for Q3 2024 was negative $467,000, compared to $429,000 positive in the previous year, driven by higher Marley Drug cost of goods sold, lower AGGRASTAT revenue, and increased R&D expenses.
Foreign Exchange Loss
The company recorded a foreign exchange loss of $46,000, up from a loss of $17,000 in the prior year, due to unfavorable changes in the U.S. dollar exchange rate.
Challenges with ZYPITAMAG Insurance Coverage
Patients experienced challenges accessing ZYPITAMAG through insurance coverage, impacting revenue through insured channels.
Company Guidance
During the Q3 2024 earnings call for Medicure Inc., the company reported net revenue of $5.2 million, consistent with the previous quarter. The net income for the quarter was $680,000, or $0.07 per share, which marked a significant improvement compared to a loss in the prior quarter and a net income of $84,000 in Q3 2023. This improvement was largely attributed to a settlement payment of EUR 1.5 million. The call highlighted a decrease in AGGRASTAT revenue to $1.9 million due to pricing pressures from generic competition, while ZYPITAMAG and Marley Drug experienced revenue increases to $553,000 and $2.7 million, respectively. The company also reported an increase in research and development expenses to $795,000, primarily due to ongoing clinical trials for MC-1. Additionally, Medicure emphasized its strategic focuses, including maintaining AGGRASTAT sales, expanding ZYPITAMAG and Marley Drug sales, developing MC-1 for PNPO deficiency, and advancing new chemical entities with significant market potential. Despite a negative adjusted EBITDA of $467,000, the company remained debt-free, with cash reserves of approximately $4.9 million as of September 30, 2024.Medicure Corporate Events
Medicure Sees Revenue Growth in Q3 2024
Nov 25, 2024
Medicure Inc. reported a slight increase in total net revenue for Q3 2024, reaching $5.2 million compared to $5.0 million in the same quarter last year. Despite a drop in AGGRASTAT sales, the company experienced growth in revenue from its Marley Drug business, contributing to a notable rise in net income to $680,000 from the previous year’s $84,000.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.