Cannabinoid-Focused Pharma Stock Slides On Q2 Earnings Report, Here Are The Details

Author: Nina Zdinjak | August 14, 2023 10:13am

Cannabinoid-focused pharmaceutical company MediPharm Labs Corp. (TSX:LABS) (OTCQB:MEDIF) (FSE: MLZ) announced Monday its financial results for the three months ended June 30, 2023, revealing revenue of CA$9.58 million ($7.11 million) compared to CA$4.36 million in the same period last year.

“In Q2, we continued to make progress by growing our revenue base, improving gross margins, reducing expenses and reducing cash burn as we drive towards profitability.” Greg Hunter, CFO, MediPharm Labs stated. “We have also demonstrated that we can quickly integrate and drive synergies through acquisitions."

Q2 Financial Summary

Gross profit amounted to CA$855,000, compared to $387,000 in the prior quarter and gross loss of $532,000 in the same period of 2022.
Adjusted EBITDA was a loss of CA$3.19 million, compared to adjusted EBITDA loss of CA$6.35 million in the second quarter of last year.
The company ended second quarter with CA$14.7 million in cash and cash equivalents with approximately CA$3 million of debt.
Net loss amounted to CA$2.7 million, compared to net loss of CA$8.99 million

Recent Milestones

MediPharm completed its first commercial delivery to the United States. The delivery was comprised of clinical trial material for a fully funded large-scale phase two clinical trial.
On April 1st, 2023, the company closed the acquisition of VIVO Cannabis Inc. ("VIVO") in an all equity business combination.

David Pidduck, CEO, MediPharm Labs commented, "We are very happy with our Q2 performance lead by the smooth VIVO integration that is ahead of all cost synergy targets. We are excited to have new employees, new business units, new products and capabilities and new investors and stakeholders."

Price Action

MediPharm shares were trading 7.97% lower at $0.0589 per share at the time of publishing Monday morning.

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Posted In: MEDIF TSX:LABS