Welcome to Medicure's earnings conference call for the first quarter ended June 30, 2024. My name is Kelly and I will be your operator for today's call. At this time, all participants are on a 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 15, 2024.
I would now like to turn the conference call over to Dr. Albert Friesen, Chief Executive Officer of Medicure Inc. Please go ahead.
Thank you, Kelly, and good morning to all on the call. We appreciate your interest and participation in today's call. Joining me today on the Q2 2024 financial statement call is Dr. Neil Owens, President and Chief Operating Officer, and Haaris Uddin, Medicure's Chief Financial Officer. The net revenue for Q2 2024 was CAD 5.2 million, which is down a bit from the previous quarter of CAD 5.7 million, and a bit of an increase over the Q4 2023, which was CAD 5.1 million. For the quarter, we had a loss of CAD 1.2 million, compared to a net income of CAD 253,000 for the same quarter last year.
The loss for the was primarily due to a significant increase in R&D expenses for the quarter, which were CAD 868,000 for the MC-1 PNPO clinical trial, as well as higher Marley Drug cost of goods, lower AGGRASTAT revenue, as well as the General and Administrative expenses. In summary, revenue for AGGRASTAT was down a bit, and revenue for both Marley Drug and ZYPITAMAG were up a bit. Again, our four focuses of the business are holding sales and profits for AGGRASTAT, growing ZYPITAMAG revenue and profit, growing the Marley Drug online pharmacy and the pharmacy business, and the development of MC-1 for the PNPO deficiency indication. But now I'd like to turn the call over to our Chief Financial Officer, Haaris Uddin, to review and provide some color on Q2.
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. As a reminder, you will be able to obtain a complete copy of our financial statements for the quarter ended June 30, 2024, by the end of day today, along with previous financial statements on the Investors page of our website. Alternatively, a copy of all financial statements and a management's discussion analysis can be obtained immediately from SEDAR.com. I will now provide some key highlights of our financial performance for the three-month period ended June 30, 2024. Total revenues for the quarter ended June 30, 2024, were CAD 5.2 million, compared to CAD 6 million for the quarter ended June 30, 2023.
Net revenues earned from AGGRASTAT during the current period totaled $1.8 million, a decrease from the prior year, where net revenue from AGGRASTAT was $2.6 million. The decrease in AGGRASTAT revenue during the current year is a result of a lower number of units sold, in addition to pricing pressures from increased competition stemming from the launch of generic tirofiban hydrochloride. Net revenues earned from ZYPITAMAG through the traditional insurance channel during the current quarter totaled $654,000 , which is a slight decrease from the $722,000 net revenue earned during the same period in the prior year. The slight decrease in ZYPITAMAG sales to the traditional insurance channel can be attributed to higher insurance rebates due to a change in customer mix.
For Marley Drug, net revenue during the current quarter totaled $2.7 million, which is consistent with the same period in the prior year, where net revenue was also $2.7 million. The slight increase in Marley Drug sales during the current period is due to an increased volume of sales, including an increased volume of ZYPITAMAG sales through Marley Drug, which are included within this figure. Offsetting these increases are higher pharmacy benefit manager or PBM rebates during the current period. The company continues to focus on growing Marley Drug and growing the sales of ZYPITAMAG through Marley Drug into 2024 and beyond. AGGRASTAT cost of goods sold for the quarter ended June 30, 2024, totaled $604,000, a decrease from the prior year, where cost of goods sold totaled $659,000.
The decrease in cost of goods sold is a result of a lower volume of AGGRASTAT sold during the current period. ZYPITAMAG cost of goods sold for the current quarter totaled $353,000 , a slight increase from the prior year, where cost of goods sold for ZYPITAMAG for the quarter ended totaled $300,000 . Included within cost of goods sold for ZYPITAMAG is $199,000 relating to products sold to customers, and $154,000 of amortization of the ZYPITAMAG intangible assets. The slight increase in cost of goods sold noted during the current quarter is due to a higher volume of products sold during the current year.
Marley Drug cost of goods sold totaled $1.25 million during the period ending June 30, 2024, an increase from the period ended June 30, 2023, where cost of goods sold totaled $900,000. The increase in cost of goods sold during the current year is a result of a higher volume and the nature of products sold through both the mail order and e-commerce platforms during the current year. Selling expenses totaled $1.8 million for the quarter ended June 30, 2024, a decrease from the same period in the prior year, where selling expenses were also $2.1 million.
Selling expenses decreased in the current period as a result of less consulting expenses incurred by the company with regards to regulatory reporting on its government contracts, in addition to an overall decrease in revenue noted during the current quarter, resulting in less logistics fees paid by the company. General and administrative expenses totaled CAD 1.4 million for the quarter ended June 30, 2024, in comparison to CAD 1.1 million during the same quarter in the prior year. The increase in general and administrative expenses in the current period is a result of higher legal fees, offset by lower share-based compensation expense on the previously granted stock options to key employees and directors of the company.
Research and development expenses for the quarter ended June 30, 2024, totaled CAD 868,000, compared to CAD 668,000 during the same quarter in the prior year. The increase during the current period is primarily due to the timing of research and development expenditures related to each development project the company is currently undertaking, which in the current quarter, primarily relate to the development of MC-1. The company recorded finance income of CAD 36,000 during the period ended June 30, 2024, in comparison to finance income of CAD 22,000 during the three-month period ended June 30, 2023. The finance income recorded during the current period consisted primarily of interest income earned on cash held by the company, offset by bank charges and finance expenses on the company's lease obligations.
The company recorded a foreign exchange loss of $25,000 during the quarter ended June 30, 2024, in comparison to a foreign exchange loss of $30,000 during the quarter ended June 30, 2023. The change in foreign exchange loss relates to changes in the US dollar exchange rate during the respective years, which led to an unfavorable foreign exchange loss during the current period. Adjusted EBITDA for the quarter ended June 30, 2024, was -$514,000, compared to an adjusted EBITDA of $948,000 during the quarter ended June 30, 2023. The decrease in adjusted EBITDA during the current period is due to higher Marley Drug cost of goods sold, lower AGGRASTAT revenue, as well as higher research and development expenses and higher general and administrative expenses.
Offsetting these increases was a decrease in selling expenses and higher ZYPITAMAG sales through the Marley Drug pharmacy business. As at June 30, 2024, the company had cash totaling approximately CAD 5.8 million, a slight decrease from the CAD 6.4 million of cash held as of December thirty-first, 2023. 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. 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.
Thank you, Haaris, and good morning, everyone. I'd like to start with some further details on our Marley Drug business. For Q2, net revenue was consistent with Q1 at $2.7 million. This is due to a 3% increase in ZYPITAMAG sold through the pharmacy business, while there was a decline in some generic medication sales due to pricing competition, which offset overall growth. Medicure still plans to leverage Marley Drug's reputation for customer service and national distribution in more business partnerships. Notably, the sale of BRENZAVVY tablets through Marley Drug contributed revenue of $250,000 in Q2, which is an accessible alternative SGLT2 inhibitor to brand Jardiance and Farxiga. While still early, we are seeing uptake in growth, and we'll continue to focus on it and other branded solutions in 2024.
A second example is the exclusive sale of sitagliptin, which is a first generic entry for another popular diabetes medication. The company is still focused on growing brand awareness through multiple media channels, and overall, we continue to look for ways to rapidly expand the pharmacy business. Challenges we've faced include not being able to control reimbursement through insurance companies for insured prescriptions and fluctuations in cost of goods, which impact our margins. Further on, on ZYPITAMAG, net revenue through insurer channels in the standard retail pharmacy model fell from CAD 777,000 in Q1 2024 to CAD 654,000 in Q2, due to a modest decrease in purchasing from wholesalers and changes in the mix of our uninsured customers.
We are in the process of consolidating our insured customers through Marley Drug instead of other retail pharmacies, as this approach is more profitable for the company. Patients still have challenges in accessing ZYPITAMAG through their insurance coverage, which is the reason why selling ZYPITAMAG through Marley Drug is such an effective approach. Similarly, due to wholesaler and coverage gap fees, low PBM reimbursement, and product returns, selling through Marley Drug provides a much higher gross margin. Overall, we continue to focus on brand awareness through efforts of our sales and marketing team and are still seeing a lot of interest from providers and patients. In terms of our AGGRASTAT business, net revenue was impacted in Q2 by generic tirofiban entries, and as a result, revenue decreased from $2.3 million in Q1 2024 to $1.8 million in Q2.
The decrease was expected and is due to both a decrease in volume of products sold and pricing. Medicure remains the only manufacturer of the 3.75 milligram bolus style format, which is typically administered before the infusion unit. We continue to provide support to our U.S. hospital accounts and plan to remain competitive in targeted ways, and therefore expect to maintain significant market share. Medicure's R&D focus is primarily on its phase 3 study to seek approval of MC-1 as the first FDA-approved therapy for patients with PNPO deficiency, which is a rare pediatric disease leading to seizures and is ultimately fatal if untreated. In parallel to the planned phase 3 clinical study, Medicure is conducting several non-clinical studies to support the approval of MC-1, as requested by the FDA.
If successful, use of Medicure's legacy product, MC-1, could lead to a Priority Review Voucher, which can be redeemed or sold and provides significant value. The FDA granted approval to start enrollment, and so the company is now in the launch phase of the study. Medicure also recently received Fast Track designation for MC-1 for its intended indication, which will facilitate the review of Medicure's FDA New Drug Application. Medicure did decide to remove the enteric coating on the MC-1 tablets to speed up absorption based on feedback from clinicians, and therefore are in the process of producing that batch product for patients waiting to enroll. Medicure recently announced that it signed an asset purchase agreement for the acquisition of the patent and intellectual property related to this discovery of new chemical entities that can be developed for therapeutic use.
We believe that these new chemical entities will promise to provide improvements over existing lead compounds in alignment with the treatment of diseases being targeted by Medicure, and could provide significant long-term value upon completion of all required non-clinical and clinical studies and regulatory approval. Despite similar overall revenue in Q2 compared to Q1, because of higher Marley Drug costs of goods, lower AGGRASTAT revenue, as well as higher research and development expenses and general and administrative expenses this quarter, we are reporting a negative EBITDA of CAD 514,000 and a net loss of CAD 1.2 million. Medicure remains debt-free, and to reiterate, the company's short-term goals are focused on maintaining AGGRASTAT, growing ZYPITAMAG and Marley Drug sales, growing our pharmacy business through partnerships and acquisition, and developments of new products.
Short term, seeking the approval of MC-1 to receive that Priority Review Voucher, and long term, the development of our new intellectual property for diseases with large market potential. With that, I'd like to turn the call back to Dr. Friesen for final comments.
Thank you, Neil. We're not satisfied with the loss for the quarter, so we are looking at cutting costs in some of our operations, but mostly looking at where we can improve our profitability in some of the sales. As we continue to be committed to the PNPO trial, which has a significant return on investment. Our management goal, and that of our board, is to continue to build this business with a stable, long-term outlook to generate value for shareholders. And as always, I want to express my sincere appreciation to the outstanding team of employees we've been blessed with. Thank you, our shareholders, for your continued support and interest. And now I'll turn it back to the moderator for questions and answers.
Certainly. The floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold just a moment while we poll for questions. There are no questions in queue at this time. I would now like to turn the floor back over to Dr. Friesen for any closing remarks.
Thank you for being on the call. We appreciate your interest and look forward to our calls coming up for Q3. Thank you.
Thank you, ladies and gentlemen. This concludes today's conference call. Thank you for participating. You may now disconnect.