Medicure Inc.
TSX : MPH

Medicure Inc.

October 14, 2009 17:13 ET

Medicure Announces First Quarter Fiscal 2010 Financial Results

WINNIPEG, MANITOBA--(Marketwire - Oct. 14, 2009) - Medicure Inc. (TSX:MPH), today reported the results of operations for the three months ended August 31, 2009 (Q1 2009/10). All amounts cited below are in Canadian dollars unless otherwise noted.

AGGRASTAT® Update

Net revenue from the sale of AGGRASTAT® in Q1 2009/10 increased by 39% compared to net revenue Q4 2008/09. Revenue has grown in six of the past eight quarters. Medicure s commercial team continues to focus on strengthening and growing the AGGRASTAT® brand through sustained growth.

Clinical Update

Enrollment of patients is continuing in the Phase IIa clinical study of TARDOXAL™ for the treatment of Tardive Dyskinesia, a common side effect of antipsychotic medications which are used to treat schizophrenia and schizoaffective disorders.

Financial Results

The consolidated financial results for Q1 2009/10 show a significant improvement over Q1 2008/09 (net loss of $1,909,559 or $0.01 per share, compared to $3,008,601 or $0.02 per share). The main factors contributing to the results are outlined below.

Net product revenues for Q1 2009/10 were $940,960 as compared to $1,170,859 for Q1 2008/09. The decline is attributable to the higher US exchange rate compared Q1 2008/09 and by the fact that the decline of wholesale sales was offset by a price increase introduced during Q3 2008/09.

Research and development expenditures for Q1 2009/10 were $189,258 compared to the expenditure recovery of $511,459 Q1 2008/09. The increase in Research and development expenditures is due to recoveries of approximately $750,000 in costs the prior year. The Company does not plan to incur significant research and development costs during fiscal 2009/10. Significant additional investment in research and development activities beyond the TARDOXAL™ study are dependent on completion of restructuring the Company s debt and on raising sufficient capital.

Overall selling, general and administrative expenditures were $1,773,619 in Q1 2009/10, as compared to $1,911,223 in Q1 2008/09. This decrease represents the net effect of an increase in selling, general and administrative expenses related to AGGRASTAT® (due mainly to the strengthening of the US dollar) and reduction due to a reduced level of staffing and lower expenses on fees related to financing and regulatory affairs.

Interest expense for Q1 2009/10 was $839,491 as compared to $1,121,894 in Q1 2008/09. The decrease is due to the lower level of debt outstanding during the period resulting from the repayment of the Merrill Lynch loan and to the strengthening of the US dollar during the period.

Foreign exchange losses of $72,907 were incurred in Q1 2009/10, as compared to $1,456,649 for Q1 2008/09. The comparatively low net foreign exchange loss during the three months ending August 31, 2009 was due to a stable U.S. dollar relative to the Canadian dollar over the period. The exchange rates during the three months ended August 31, 2009 did not change significantly from the exchange rates at May 31, 2009.

At August 31, 2009 the Company had cash and cash equivalents totaling $938,467, as compared to $1,978,725 of cash and cash equivalents as at May 31, 2009.

Strategic changes made over recent months, coupled with focused capital conservation efforts, have assisted the Company in conserving capital while continuing to develop its key assets. However, the Company's ability to continue in operation for the foreseeable future depends on the effective execution of its business development and strategic plans, successful renegotiation of its existing debt obligations and on securing additional sources of financing.

As of August 31, 2009, the Company had accrued US$1.9 million due on the earlier of November 30, 2009 and the date which is five business days following the date on which the Company receives written notice from the lender.

The ability of the Company to continue as a going concern and to realize the carrying value of its assets and discharge its liabilities when due is dependent on many factors, including, but not limited to the actions taken or planned, as described above. Management believes these actions will mitigate doubts about the validity of the "going concern" assumption used in preparing the Company's financial statements. However, there is no certainty that these and other strategies will be sufficient to permit the Company to continue as a going concern. If the "going concern" basis is not appropriate, then adjustments to the financial statements, including the carrying value of assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used, would be necessary. An expanded version of Management's Discussion and Analysis and the financial statements for the three months ended August 31, 2009 is accessible on Medicure's website at www.medicure.com.

About Medicure Inc.

Medicure Inc is a biopharmaceutical company focused on the research, development and commercialization of novel small molecules to treat cardiovascular and neurological disorders. The Company s primary business activity is the marketing and distribution of AGGRASTAT® (tirofiban hydrochloride) for acute coronary syndromes.

This press release contains forward-looking statements, as defined under applicable securities legislation, that involve risks, which may cause actual results to differ materially from the statements made, and accordingly may be deemed to be forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise except as required by law. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the Company s stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market the Company s products, the ability to protect its intellectual property, dependence on collaborative partners and the ability to meet its debt obligations. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Additional risks and uncertainties relating to the Company and its business can be found in the Risk Factors section of its Form 20F for the year ended May 31, 2009.

Contact Information

  • Medicure Inc.
    Albert D. Friesen, Ph.D.
    President & CEO
    888-435-2220
    204-488-9823 (FAX)
    www.medicure.com