Medexus Pharmaceuticals (MDP) Q2 2025 earnings summary

Executive summary

• Fiscal Q2 2025 revenue was $26.3 million, down from $30.3 million year-over-year, with stable gross margin and improved adjusted EBITDA of $6 million compared to $5.3 million last year.

• Net income was $0.1 million, a $1.2 million improvement from a net loss of $1.1 million in the prior year period.

• Operating income for Q2 2025 was $1.6 million, with year-to-date revenue at $53.6 million and net income at $2.1 million.

• The company is preparing for potential FDA approval and U.S. launch of treosulfan by end of January 2025, with investments in personnel and infrastructure.

• Operating cash flow was $6.9 million for the quarter, and $4.1 million in principal was paid down on the credit facility.

Financial highlights

• Revenue decreased by $4 million year-over-year, mainly due to lower net sales of Rasuvo and Ixinity, partially offset by growth in Rupall and Gleolan.

• Gross profit was $14.1 million, with a gross margin of 53.7%, consistent with the prior year.

• Selling and administrative expenses fell to $9.7 million from $11.9 million year-over-year, reflecting ongoing cost discipline.

• Adjusted EBITDA rose to $6 million, up $0.7 million year-over-year, driven by cost controls and improved Ixinity manufacturing.

• Cash on hand was $7 million at quarter-end, with $44.2 million outstanding under two BMO credit facilities.

Outlook and guidance

• FDA decision on treosulfan NDA expected by January 30, 2025, with commercial launch targeted for first half of 2025.

• U.S. treosulfan annual revenue potential estimated to exceed $100 million within five years post-launch.

• Investments in personnel and infrastructure for treosulfan will increase in the next quarter.

• Rupall expected to face generic competition in early 2025, with gradual revenue erosion anticipated.

• Topical terbinafine in Canada targets commercial launch in H1 2025, pending Health Canada approval.