Markets on Bay Street and Wall Street have moved back up this week as data showed the inflation rate fell more than expected in June.
Another bonus is that corporate earnings season has started off strong for a lot of major companies reporting their financials. Have some of the smaller-cap companies out there also felt this influx in business?
Biopharmaceutical company Theratechnologies Inc. (TSX:TH, Forum) sure hasn’t. The Montréal-based firm reported business highlights and financial results for Q2 and first half of fiscal year 2023.
Revenue Summary for Second Quarter and First Half Fiscal 2023
(in thousands of U.S. dollars)
|
Three months
ended May 31 |
per cent
change |
Six months
ended May 31 |
per cent
change |
|
2023 |
2022 |
|
2023 |
2022 |
|
| EGRIFTA;, EGRIFTA SV; net sales |
10,853 |
11,416 |
(4.9 per cent) |
23,564 |
23,120 |
1.9 per cent |
| Trogarzo; net sales |
6,696 |
7,852 |
(14.7 per cent) |
13,893 |
14,705 |
(5.5 per cent) |
| Revenue |
17,549 |
19,268 |
(8.9 per cent) |
37,457 |
37,825 |
(1.0 per cent) |
The company’s President and CEO, Paul Lévesque commented that Q2 revenues were negatively impacted by the build-up of larger than necessary inventories by specialty pharmacies at the end of 2022, which was in anticipation of expected higher demand.
“Additionally, in an effort to improve gross-to-net, we renegotiated contract terms with one specialty pharmacy, which resulted in a lowering of their overall inventory levels. These events impacted revenues through April of this year, at which time the overstock of inventory levels was depleted. With May and June sales in, we are confident this is behind us now. The new contract terms will be beneficial to Theratechnologies in the future, resulting in significant recurring savings in distribution costs.”
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As a result of the weakness in the company’s net revenues in the first half of the 2023 fiscal year, the company has initiated a reorganization mainly focused on its R&D activities, which is expected to result in annualized savings of at least $5.5 million for the fiscal year 2024 and beyond.
The company also announced that it will resume Phase 1 trial testing of its drug, Sudocetaxel zendusortide, which is used to treat certain types of tumors, following an FDA agreement to amended protocol.
Fobi AI Inc.’s (TSXV:FOBI, Forum) subsidiary, Passcreator, has started a partnership with German fashion retailer, Wormland, to digitalize the brand’s existing loyalty program, THECLUB.
With Passcreator’s digital loyalty solution, Wormland will be able to distribute wallet passes to all members of THECLUB, who can then have their passes scanned at Wormland retail locations to claim promotions and discounts, redeem rewards, and more. Fobi will earn revenue from this deal via monthly fees based on the volume of active passes.
Fobi’s CEO, Rob Anson, stated that Passcreator continues to provide ways for brands like Wormland to deliver an improved customer experience.
“Passcreator and its broad feature set for digital loyalty and membership cards, through the wallet pass, has continued to develop great traction across the retail industry, and this is a great example of how brands like Wormland can leverage innovation and technology to drive increased customer engagement and activation and meet their ESG goals.”
Fobi was founded in Vancouver and is a leading AI and data intelligence company providing businesses with real-time applications to digitally transform and future-proof their organizations.
New Found Gold Corp. (TSXV:NFG, Forum) released the results from seven diamond drill holes that were completed as part of a drill program designed to test the newly discovered Keats West zone, a part of the highly prospective Appleton Fault Zone.
New Found’s Queensway project comprises a 1,662 km2 area, 15 km west of Gander, Newfoundland and Labrador.
Source: New Found Gold Corp.
Highlights:
- 5.05 g/t Au over 11.70 metres in hole NFGC-22-1027 occurs at surface and increases the total strike length of the Keats West zone to 315 metres, an increase of 65 metres. Keats West starts at surface with all intercepts drilled to date occurring above 130 metres vertical depth and now spans a 305 metres long by 315 metres wide area that has a cumulative average thickness of 30 metres
- 4.43 g/t Au over 43.40 metres in NFGC-22-1010, located 120 metres east of NFGC-22-1027 and provides an excellent example of the calibre of grade and thicknesses, as well as strong continuity of gold mineralization that characterizes Keats West
- Exploration is ongoing west of the zone, with targeted drill programs occurring at Keats West, K2 and Monte Carlo, while a systematic reconnaissance grid drilling program sweeps the area in search of additional, shallow gold-bearing structures
New Found Gold’s COO, Greg Matheson, stated,
“We are encouraged by the ongoing expansion of Keats West, which continues to demonstrate consistent grades and thicknesses, occurring right at surface. We eagerly await additional results from Keats West in addition to K2, Monte Carlo and the west-side reconnaissance grid program.”
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