Toronto-based MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) had a revenue decrease of 10 per cent during its last quarter.
On Monday, cannabinoid pharmaceutical released its financial results for its second quarter ended June and reported a gross loss of $532,000 from $403,000 in the last quarter. It also reported a cash equivalent at the end of the period of $21.9 million.
Operational costs reached $9 million during the quarter and the company implemented a restructuring plan that will reduce the Canadian non-manufacturing headcount by approximately 30 per cent, which reduces annualized expenses by around $3 million beginning in Q3.
“In Q2 MediPharm made notable progress growing its revenue base, reducing cash burn, and driving toward sustainable growth and profitability,” MediPharm Labs CFO Greg Hunter said.
“The combination of the sale of our Australian asset and recent Canadian restructuring should result in approximately $7 million in annualized savings beginning in Q3. With a strong cash balance of $22 million and no material debt, we are well positioned to take advantage of the growing global cannabis pharmaceutical and wellness markets,” he added.
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“I joined MediPharm in late April, and we immediately increased our focus on improving efficiency, maximizing capacity utilization and re-allocating capital to the core opportunities that will maximize revenue growth potential,” MediPharm Labs CEO David Pidduck said.
“I continue to be impressed by the team’s focus on being one of the most Pharma-focused companies in the global Cannabis market. Our quality processes and GMP approach allow us to participate in the Pharmaceutical cannabis market while being early entrants into large evolving international Cannabis markets that require GMP licences,” Pidduck said.
“The recent signing of a research agreement with the Keck School of Medicine at USC provides further evidence that MediPharm is well-positioned as a strong Pharma cannabinoid partner.”
Pidduck said the company will continue to push for innovation in the Canadian market as the quarter saw right new product releases as well as four products approved in the German market. The company recently started shipping products to Brazil.
Following the second quarter, the company entered into a research support agreement with the Keck School of Medicine of University of Southern California on a Phase II trial on the efficacy of THC and CBD to treat hospice-eligible patients diagnosed with dementia and agitation. The investigators were awarded with US$16 million as grants from the United States, National Institute of Health and the National Institute on Aging.
