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Merus Labs International Inc. Announces Second Quarter Results for Fiscal 2014
Merus Labs International Inc.
TORONTO, ONTARIO--(Marketwired - May 14, 2014) - Merus Labs International Inc. ("Merus" or the "Company") (MSL.TO)(MSLI) is pleased to announce today its financial results for the second quarter of fiscal 2014.
Revenues for the three months ended March 31, 2014 were $6,690,464, which were comprised of sales of Enablex® and Vancocin®. Gross margin during the same period was $5,478,613 (82%).
For the three months ended March 31, 2014, the Company incurred a net loss of $1,455,185 compared to a net loss of $2,298,698 for the three months ended March 31, 2013. For the three months ended March 31, 2014, EBITDA was $2,604,306, compared to $3,481,666 for the same period last year. Adjusted EBITDA, which adds back non-cash share based compensation expense and acquisition costs, was $3,264,453, compared to $3,727,427 for the prior year comparative period with the decrease being primarily attributable to additional investment related to the promotion of Enablex in the United Kingdom and Canada during the three months ended March 31, 2014.
Per the Company's service agreement with the vendor of Enablex®, Novartis Pharma AG ("Novartis"), during the operational transition period Novartis managed the supply, distribution, and promotion to the market. Since the third quarter of fiscal 2013, the operational transition period has substantially ended and going forward Novartis will only manufacture the product for Merus until the Company's contract manufacturer transfers the manufacturing of the product into its facility. As the operational transition period has substantially ended there is no longer a significant difference between the recorded Enablex® revenues on a net basis and the gross in-market net sales. Consequently, for the current period, on a gross and net basis, the net sales of Enablex® were $5,474,198. In the comparative three month period in 2013, on a gross basis, the in-market net sales of Enablex® were $5,397,887 ($5,733,327 less $335,440 in partnership accruals). Revenues on a gross basis for Enablex® during the three months ended March 31, 2014 were slightly higher than in the comparative year period.
For the three months ended March 31, 2014, the net sales for Vancocin® were $1,216,266. For the comparative three months ended March 31, 2013, the net sales of Vancocin® were $1,265,275. Sales for the three month period are comparable as generic Vancomycin was available in the prior year period.
"The underlying business continues to perform well and the $23 million bought deal completed in the quarter was the final step in the Company's deleveraging program which positions Merus well for future acquisitions" said Elie Farah, President and CEO of Merus Labs International Inc.