MediPharm Labs Still Hits C$8.5M Despite Sequential Drop, More On That In Q3 2023 Financial Report
Portfolio Pulse from Joana Scopel
MediPharm Labs Corp. reported Q3 2023 financial results with revenue of C$8.5 million, a sequential decrease but a year-over-year increase. The company saw its highest gross profit since Q4 2019 at C$2.4M and improved adjusted EBITDA. Integration of VIVO led to significant savings, and a strong balance sheet was noted with C$13M in cash. A dispute settlement with Tilray Brands, Inc. resulted in C$9M for MediPharm, including cash, products, and a purchase agreement. MediPharm's stock (MEDIF) traded down 2.23% on the news.
November 14, 2023 | 7:21 pm
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NEGATIVE IMPACT
MediPharm Labs reported a revenue decrease sequentially but an increase YoY, with a strong gross profit and improved EBITDA. The company's stock traded down following the report.
Despite reporting positive gross profit and improved EBITDA, the sequential revenue decrease and the immediate negative stock price reaction suggest a short-term negative impact on MEDIF's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Tilray Brands, Inc. settled a dispute with MediPharm, resulting in a C$9M benefit for MediPharm, including a four-year purchase agreement.
The settlement with MediPharm is positive for Tilray, providing a resolution and future purchase agreement, but the immediate financial impact is neutral as the benefits are spread over four years.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50