Medicure Inc.

Welcome to Medicare's Earnings Conference Call for the quarter ended December 30th, 2025. My name is Holly, and I will be your operator for today's call. At this time, all participants are in listen-only mode. Before we proceed, I would like to remind everyone that this presentation contains forward-looking statements relating to future results, events, and expectations, which are made pursuant to the Safe Harbor provisions of the U.S. Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which could cause the company's actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, among others, those described in the company's most recent annual information form and Form 20-F. Later, we will conduct a question-and-answer session. Please note that this conference call is being recorded and today's date is August 21st, 2025. I would like to turn the conference call over to Dr. Albert Friesen, Chief Executive Officer of Medicure, Inc. Please go ahead, Dr. Friesen.

Thank you, Holly, and good morning to all on the call. We appreciate your interest and participation in today's call. Joining me today on the Q2-25 call is are Dr. Niels Owens, President and Chief Operating Officer, and Haris Uddin, Medicare's Chief Financial Officer. The net revenue for Q2 2025 was $6.7 million, an increase from the previous year, where the net revenue was $5.2 million. The company recorded a net loss of approximately $786,000, or $0.08 per share, compared to a net loss in the previous year of $1.1 million and 12 cents per share. The non-cash items contributing to the loss include amortization, stock options, et cetera, about the same as the net loss. And in addition, Medicare also invested $641,000 in research and development during the quarter underscoring our commitment to achieve advancing innovative therapies such as the Phase III trial for Medicare's drug MC1 for the treatment of PNPO deficiency and delivering long-term value to patients and shareholders. We recently added a fifth focus, that being the development of a novel drug related to with a significant market potential to further build long-term value for shareholders. So just to remind us, the five focuses are holding sales and profits of Agristat, growing Zypidemag revenue and profits, growing Marley Drug, the pharmacy business and the online pharmacy, the development of MC1 for PNPO deficiency, and the new chemical entity related to Medicare's historic drug development with large market potential. Now I'd like to turn the call over to CFO, Haris Hooden, to review and provide some color on the Q2 financials.

Haris Hooden Thank you, Dr. Friesen. A couple of quick items to note before I start. All dollar figures are in Canadian dollars unless otherwise noted by each presenter. And as a reminder, you can obtain a complete copy of our financial statements for the quarter ended June 30th, 2025, along with previous financial statements on the investor's page of our website. In addition, a copy of all financial statements and management's discussion and analysis can also be obtained from cdrplus.ca. I will now provide some key highlights of our financial performance for the three-month period ended June 30th, 2025. Total revenue for the quarter was $6.7 million compared to $5.2 million for the quarter ended June 30, 2024. Net revenues earned from Agristat during the current period totaled $1.7 million, a slight decrease from the prior year where net revenue from Agristat was $1.8 million. The decrease in Agristat revenue during the current period is the result of a lower volume of units sold as a result of increased competition from generic Tyro-5 and hydrochloride. Net revenue earned from Zipidimeg through the traditional insured channel during the three-month period ended June 30th, 2025 totaled $751,000 which is a slight increase from the $654,000 net revenue earned during the same period in the prior year. The increase in Zipidimeg revenue during the three-month period ended June 30th, 2025 can be attributed to an increased utilization of the product through insurance formularies during the current quarter. It is important to note that Zepeda Make sales through Marley Drug are excluded from this number. For Marley Drug, net revenue during the current quarter totaled $3.1 million, an increase from the $2.7 million earned from Marley Drug during the three-month period ended June 30, 2024. The increase in Marley Drug sales during the current period is due to an increased volume of products sold, Net revenue attributable to Zepidimeg through Marley Drug was $908,000 during the current period. An increase from the three-month period ended June 30, 2024, whereas Zepidimeg sales through Marley Drug were $791,000. On March 11, 2025, the company acquired Gateway Pharmacy. Revenue for Gateway Pharmacy for the quarter ended June 30, 2025 was $764,000. In addition, on June 16, 2025, the company acquired West Olympia Pharmacy. Revenue earned from West Olympia Pharmacy during the current quarter was $328,000. It is important to note that the revenue earned through West Olympia Pharmacy during the current period was from its acquisition date of June 16, 2025 to June 30, 2025. The company intends on offering Zipidimac through both pharmacies in subsequent quarters in addition to other product offerings which have increased revenue at Marley Drug. With regards to cost of goods sold, Agristar cost of goods sold for the quarter ended June 30, 2025, totaled $693,000, an increase from the prior year where cost of goods sold totaled $604,000. The increase in cost of goods sold is attributable to a slightly higher manufacturing cost, a less favorable FX rate, offset by a lower volume of products sold during the current period. The PDMAG cost of goods sold for the current quarter totaled $233,000, a decrease from the same period in the prior year, where cost of goods sold for the PDMAG for the quarter ended totaled $353,000. Included within cost of goods sold for Zepidemag in the current period is $76,000 relating to products sold to customers and $157,000 of amortization of the Zepidemag intangible asset. Marley drug cost of goods sold totaled $1.5 million during the period ended June 30th, 2025, an increase from the period ended June 30th, 2024 where cost of goods sold totaled $1.3 million. The increase in cost of goods sold at Marley Drug during the current period is a result of a higher volume and nature of product sold through both the mail order and e-commerce platform. Gateway Pharmacy's cost of goods sold during the three month period ended June 30th, 2025 was $531,000 and West Olympia Pharmacy's cost of goods sold during the three month period ended June 30th, 2025 was $241,000. As both pharmacies were acquired during the current year, there was no cost of goods sold recorded for either Gateway Pharmacy or West Olympia Pharmacy during the three-month period ended June 30, 2024. Selling expenses totaled $2.1 million for the quarter ended June 30, 2025. An increase from the three-month period ended June 30, 2024, where selling expenses were $1.8 million. Selling expenses increased in the current period as a result of the acquisitions of Gateway Pharmacy and West Olympia Pharmacy in addition to higher selling expenses through Marley Drug which is also consistent with the higher revenue recorded through Marley Drug in the current period. General and administrative expenses totaled $1.3 million for the quarter ended June 30, 2025 in comparison to $1.4 million during the quarter ended June 30, 2024. The decrease in general and administrative expenses in the current period is a result of lower professional fees in the current period in addition to lower share-based compensation expense, which is based on the vesting schedule of previously granted stock options to key employees and directors of the company. Research and development expenses for the quarter ended June 30, 2025 totaled $741,000 compared to $868,000 during the same quarter in the prior year. The decrease during the current period is primarily due to the timing of research and development expenditures relating to each development project the company is currently undertaking, which in the current period was primarily the development of MC1. The company recorded finance income net of $20,000 during the period ended June 30, 2025, in comparison to finance income net of $36,000 during the three-month period ended June 30, 2024. The finance income recorded during the current period primarily relates to interest income earned offset by bank charges, interest on the company's lease obligations and holdback payable and non-cash accretion expense on the company's acquisition payable liability. The company recorded a foreign exchange loss of $49,000 during the quarter ended June 30, 2025 in comparison to a foreign exchange loss of $25,000 during the quarter ended June 30, 2024. The change in foreign exchange loss relates to changes in the U.S. dollar exchange rate during the respective years. Adjusted EBITDA for the quarter ended June 30th, 2025 was negative $28,000 compared to an adjusted EBITDA of negative $514,000 during the quarter ended June 30th, 2024. The increase in adjusted EBITDA during the current period is due to a decrease in operating loss which primarily related to higher revenues epitomized for Marley Drug in addition to overall higher revenue of Marley Drug. in addition to lower general and administrative expenses, in addition to lower research and development expenses, offset by a lower revenue of Agristat and higher cost of goods sold during the current period. As of June 30, 2025, the company had cash totaling approximately $4.8 million, a decrease from December 31, 2024, where the company had $7.2 million of cash held. The decrease in cash balance The decrease of cash balance of the company is primarily attributable to the acquisitions of both Gateway Pharmacy and West Olympia Pharmacy during the current year. The company does not have any debt on its books. I want to remind you that there will be an opportunity at the end of today's call for you to ask questions regarding the financial results of the company as a whole, and with that, I would like to turn the call over to our President and Chief Operating Officer, Dr. Neil Owens, for some additional commentary regarding our operations.