TORONTO, ONTARIO--(Marketwired - May 14, 2013) - Merus Labs International Inc. ("Merus" or the "Company") (TSX:MSL)(NASDAQ:MSLI) is pleased to announce today its financial results for the second quarter of fiscal 2013. The results from the second quarter of fiscal 2013, for both revenue and earnings, have exceeded management's expectations.
For the three months ended March 31, 2013, the Company incurred a net loss of $2,298,698 compared to a net loss of $362,684 for the three months ended March 31, 2012. For the three months ended March 31, 2013, EBITDA was $3,653,871, compared to ($415,626) for the same period last year. Adjusted EBITDA, which adds back non-cash share based compensation expense and acquisition costs, was $3,899,632, compared to $954,191 for the prior year comparative period.
Revenues for the three months ended March 31, 2013 were $5,848,983, which were comprised of sales of Vancocin®, Factive®, and Enablex®. Gross margin during the same period was $5,540,765 (95%).
Per the Company's service agreement with the vendor of Enablex®, Novartis Pharma AG ("Novartis"), during the operational transition period Novartis will manage the supply, distribution, and promotion to the market. Consequently, the Company recorded Enablex® revenues net of cost of goods and marketing and selling expense for the three month period ended March 31, 2013. For the current period, on a gross basis, the in-market net sales of Enablex® were $5,733,327. The Company did not own Enablex® during the comparative three month period in 2012.
For the three months ended March 31, 2013, the net sales for Vancocin® were $1,265,275. For the comparative three months ended March 31, 2012, the net sales of Vancocin® were $2,205,628. The decrease was primarily due to the entry of a generic Vancomycin which received reimbursement status in several provinces during the Company's fiscal 2013 first quarter.
For the three months ended March 31, 2013, the net sales for Factive® were $385,948. The Company did not record any sales for Factive® during the comparative three month period in 2012.
"We are pleased with the results of this quarter in which we generated total in-market net sales of $7.4 million, adjusted EBITDA of $3.9 million, and a corresponding increase in net cash of $4.0 million. The overall business is tracking to plan and in the last six months we have generated adjusted EBITDA of $9.1 million. Over the last year, there have been product acquisitions and other events which have created fluctuations in product revenues, however, we have now reached the point where there is enhanced visibility on the substantial EBITDA generating capacity of the existing product portfolio on a normalized basis," said Elie Farah, President and CEO of Merus Labs International Inc.
Management's discussion and analysis, containing a full analysis of financial results, is available on EDGAR (www.sec.gov/edgar.shtml) and on SEDAR (www.sedar.com).
About Merus Labs International Inc.
Merus is a specialty pharmaceutical company engaged in the acquisition and licensing of pharmaceutical products. The Company utilizes its expertise in pharmaceutical markets and its access to capital to acquire and license niche branded products. Merus further enhances the sale and distribution of these products by the introduction of a focused marketing and promotion plan.
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 21E (i) (1) of the United States Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Merus' actual results to be materially different from any future results expressed or implied by these statements. Such factors include the following: general economic and business conditions, changes in demand for Merus' products, changes in competition, the ability of Merus to integrate acquisitions or complete future acquisitions, interest rate fluctuations, currency exchange rate fluctuations, dependence upon and availability of qualified personnel and changes in government regulation. In light of these and other uncertainties, the forward-looking statements included in this press release should not be regarded as a representation by Merus that Merus' plans and objectives will be achieved. These forward-looking statements speak only as of the date of this press release, and we undertake no obligation to update or revise the statements.