TORONTO – MediPharm Labs Corp., a pharmaceutical company specialized in precision-based cannabinoids, announced its financial results for the full year and three months ended December 31, 2024.
MediPharm significantly improved profitability in 2024, addressing cost structure and gross profit while simultaneously reducing operating expenses and substantially growing revenues. The company is in a strong cash position, is materially debt free, up to date on all cannabis excise duties and regulatory fees and currently has full unencumbered ownership of all production facilities.
Full year 2024 highlights
- Net revenue increased by $9M or 27% to $42M versus prior year of $33M
- Gross profit of $12.8M or 31% representing a significant improvement over 2023 of $5.8M or 18%
- Adjusted EBITDA loss of $1.9M which improved $8.3M or 81% versus 2023. Adjusted EBITDA continues to improve driven by margin expansion initiatives and cost reductions
- Key operations from the Hope facility were transitioned to the Barrie facility resulting in over $1M in annualized savings. Subsequent to Q4 2024, MediPharm announced the sale of its Hope facility for $4.5M, which is anticipated to close within the second quarter, subject to customary closing conditions and receipt of all necessary approvals, as applicable.
- Repaid $2M of convertible debt leaving the Company materially debt free.
Q4 2024 highlights
- Revenue of $12M increased $2.9M or 32% versus Q4 2023
- Gross profit of $3.6M or 30% representing a significant improvement over Q4 2023 of $2.2M or 24%
- Adjusted EBITDA(1) loss of $0.1M improved $1.5M or 94% versus Q4 2023
- International revenue represented 54% of revenue versus 27% in Q4 2023
- Strong balance sheet, relative to many peer companies, with $11.7M million of cash and materially debt-free
International medical cannabis revenue
- International Medical Cannabis 2024 revenue of $17.7M increased 83% from $9.7M in 2023 driven by further market penetration, new product launches in Germany and Australia, and new global and domestic partnerships.
- International revenue accounted for 54% of Q4 revenue and increased from $2.4M in Q4 2023 to $6.5M in Q4 2024.
- Achieved Pharmaceutical GMP certification with Brazilian Health Regulatory Agency (ANVISA) and is one of just a few North American companies to receive multiple sanitary authorizations for cannabis products while holding an ANVISA GMP license.
- MediPharm continues to focus on innovative and complex pharmaceutical cannabinoid solutions with global applications, including Dronabinol and the previously announced global licensing agreement with Remidose Aerosols Inc. for advanced metered dose inhalers.
Advancing patient outcomes
MediPharm continues to participate in Health Canada consultations on Natural Health Products Containing CBD (“NHPCC”) and is uniquely positioned for success in that future channel(2), with a strong foundation for potential NHPCC products, given our leadership in CBD products, GMP facility, and DEL licence.
MediPharm remains committed to patients in Canada and abroad, including engagement in Clinical Research to support pharmaceutical cannabinoid innovation and clinical advancements. Academic and commercial research partners have selected MediPharm’s pharma-grade products for their clinical research, with various clinical trials advanced to Phase 1 and Phase 2 in 2024. Please see the table below for updates on active research engagements.
Management commentary
David Pidduck, CEO, MediPharm Labs commented, “We are pleased with our progress towards profitability in 2024, driven by 80% growth in our International revenues. International represented over 50% of our Q4 revenues, capitalizing on our EU-GMP licensed facilities. We are well positioned for long-term international success and continue to onboard new customers and distribution partners to meet the growing global demand for premium cannabinoid products.”
Greg Hunter, CFO, MediPharm Labs added, “2024 was a transformational year for MediPharm Labs with $42M in net revenue representing a 27% increase versus 2023. Gross margins expanded significantly to 31% versus 18% in 2023 and Adjusted EBITDA loss improved from $10M in 2023 to $1.9M in 2024. We are very close to being Adjusted EBITDA positive with Q4 2024 Adjusted EBITDA loss of $0.1M.”
An updated company presentation including select highlights from the period ended December 31, 2024 will be made available on MediPharm’s website in lieu of a quarterly earnings call hosted by management.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets.
