MediPharm Labs Reports Fourth Quarter and Full Year 2020 Results
BARRIE, Ontario, March 31, 2021 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) ("MediPharm Labs" or the "Company") a global leader in specialized, research-driven cannabis extraction, distillation and derivative products today announced its financial results for the three and twelve months ended December 31, 2020.
"We are executing on our strategy to become a high-value, GMP-certified, global cannabis API provider to medical and wellness markets," said Keith Strachan, President and Interim CEO, MediPharm Labs. "We have successfully signed new international contracts, expanded our pharmaceutical licenses, and reduced costs as we are focused on returning to profitability and ensuring the long-term success of the business."
Q4 2020 Revenue Up 22% Sequentially on Growth in Finished Formulated Products
-- Revenue of $6.1 million increased 22% compared to $4.9 million in Q3 2020 -- Revenue from formulated finished products increased approximately 64% sequentially, of which MediPharm Labs branded products increased approximately 8% -- Delivered first shipments of LABS Cannabis CBD Isolate to retailers in six provinces in Q4 2020, complementing CBD25 Regular Formula, CBD50 Plus Formula and CBD25:5 Release Formula products for medical and wellness
Global Cannabis Pharmaceutical API, Medical, Wellness Markets Underway
-- 30+ agreements in place with customers in eight countries -- Established presence of a specialized global GMP platform and portfolio of licenses providing a production-ready foundation to meet anticipated customer demand -- Subsequent to Q4 2020, completed first shipments to large European pharmaceutical company STADA in Germany
"MediPharm demonstrated strong progress in accelerating the commercialization of our finished formulated products to diversify and drive sustainable revenues," said Strachan. "With the recent receipt of our Cannabis Drug Licence from Health Canada and the initial ramp up of shipments to Germany now underway, we are seeing our global growth strategy come to fruition."
Cost Reductions and Balance Sheet Stability Supports Strategic Execution
-- Completed a review of our processes and cost structure which resulted in over $3.6 million in annualized expense reductions in Q4 2020. In addition, the Company has implemented company-wide cost containment measures -- Cash and cash equivalents totalled $19.9 million at December 31, 2020 after repaying in full an outstanding non-revolving loan ($5.3 million) and making installment payments on the Company's convertible loan ($3.3 million). As at March 31, 2021, the principal balance outstanding under the convertible notes of the company is less than $4.0 million -- The previously announced March 2021 bought-deal financing provided $33.4 million in gross proceeds, which strengthened the balance sheet further supporting the Company's long-term growth strategy