Welcome to Medicure's Earnings Conference Call for the Quarter Ended September 30, 2024. My name is Jenny, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. And 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 is being recorded, and today's date is November 26, 2024. I would now like to turn the conference call over to Dr. Albert Friesen, Chief Executive Officer of Medicure Incorporated. Please go ahead, Dr. Friesen.
Thank you, and good morning to all on the call. We appreciate your interest and participation on today's call. On the call today with me, for the Q3 2024 financial statements, is Dr. Neil Owens, President and Chief Operating Officer, and Haaris Uddin, Medicure's Chief Financial Officer. The net revenue for Q3 2024 was $5.2 million, which is similar to the previous quarter. The net income for the quarter was $680,000 or $0.07 per share compared to a loss in the previous quarter and a net income of $84,000 in Q3 of the previous year. The significant income was due in large part to a settlement payment. Included in the quarter expenses was an R&D expense of $785,000, largely due to the MC1 PNPO clinical trial. Revenue from AGGRASTAT was down a bit, and revenue from both Marley Drug and ZYPITAMAG were up a bit.
We've added a fifth focus, that being the development of a novel drug related to MC1 with significant market potential. So we now have five focuses in the business. Number one, holding sales and profits from AGGRASTAT , growing ZYPITAMAG revenue and profit. Three, growing the Marley Drug online pharmacy business. Four, developing MC1 for the PNPO deficiency, which has large market potential. And the fifth, the new chemical entity related to Medicure's historic drug development with a large market potential. I would now like to turn the call over to our Chief Financial Officer, Haaris Uddin, to review and provide some color on the financial results for Q3.
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 will be able to obtain a copy of our financial statements for the quarter ended September 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 management's discussion and 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 September 30, 2024. Total revenue for the quarter ended September 30, 2024, was CAD 5.2 million compared to CAD 6 million for the quarter ended September 30, 2023.
Net revenues earned from AGGRASTAT during the current period totaled $1.9 million, a decrease from the prior year, where net revenue from AGGRASTAT was $2.4 million. The decrease in AGGRASTAT revenue during the current year is the result of pricing pressures from increased competition stemming from the launch of generic tirofiban hydrochloride. Net revenues earned from ZYPITAMAG through the traditional insured channel for the current quarter totaled $553,000, which is an increase from the $398,000 net revenue earned during the same period in the prior year. The increase in ZYPITAMAG sales through the traditional insured channel can be attributed to greater utilization of the product through insurance formularies, specifically Medicare Part D. This increase is offset by increased wholesaler fees, in addition to higher coverage gap payments to pharmacy benefit managers.
For Marley Drug, net revenue during the current quarter totaled $2.7 million, an increase from the prior year, where net revenue totaled $2.2 million. The pharmacy business has undergone a change in its product mix since the prior year, resulting in the increase in revenue during the current period, and continues to focus on fulfillment partnerships, its e-commerce platform, and increased sales of ZYPITAMAG. Offsetting the increase in revenue is a decline in reimbursements from pharmacy benefit managers, which only impact insured prescription revenue. AGGRASTAT cost of goods sold for the quarter ended September 30, 2024, totaled $720,000, an increase from the prior year, where cost of goods sold totaled $648,000. The increase in cost of goods sold is the result of an inventory write-down of $71,000 recorded in the current period related to expired unfinished product inventory.
ZYPITAMAG cost of goods sold for the current quarter totaled $299,000, an increase from the prior year, where cost of goods sold for ZYPITAMAG for the quarter ended totaled $34,000. Included within cost of goods sold for ZYPITAMAG in the current year is $144,000 relating to products sold to customers, $155,000 of amortization of the ZYPITAMAG intangible asset. The increase in cost of goods sold noted in the current quarter is due to higher volume of products sold during the current year, in addition to a recovery of $281,000 in ZYPITAMAG royalties, which were recorded during the same period in the prior year. Marley Drug cost of goods sold totaled $1.3 million during the period ended September 30, 2024, an increase from the period ended September 30, 2023, where cost of goods sold totaled $680,000.
The increase in cost of goods sold during the current year is the result of a higher volume and the nature of products sold through both the mail order and e-commerce platform during the current year. Selling expenses totaled $1.97 million for the quarter ended September 30, 2024, a slight decrease from the same period in the prior year, where selling expenses were $2 million. The decrease in selling expenses during the current quarter in comparison to the same period in the prior year is a result of decreases in consulting, commercial salaries, and marketing expenses. General and administrative expenses totaled $1.2 million for the quarter ended September 30, 2024, in comparison to $1 million during the same quarter in the prior year.
The slight increase in general and administrative expenses in the current period is the result of higher legal fees, offset by lower share-based compensation expense on previously granted stock options to key employees and directors of the company. Research and development expenses for the quarter ended September 30, 2024, totaled $795,000 compared to $508,000 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 relating to each development project the company is currently undertaking, which in the current quarter primarily related to the development of MC1. Other income during the quarter ended September 30, 2024, was $1.9 million. The other income recorded during the current period was a result of a legal settlement between the company and its contract development and manufacturing organization. The company received the settlement payout subsequent to quarter end.
During the quarter ended September 30, 2023, the company did not record any other income. The company recorded finance income of $18,000 during the period ended September 30, 2024, in comparison to finance income of $3,000 during the three-month period ended September 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 $46,000 during the quarter ended September 30, 2024, in comparison to a foreign exchange loss of $17,000 during the quarter ended September 30, 2023. The change in foreign exchange loss related to changes in the U.S. dollar exchange rate during the respective years, which led to an unfavorable increased foreign exchange loss during the current period.
Adjusted EBITDA for the quarter ended September 30, 2024, was negative $467,000 compared to an adjusted EBITDA of $429,000 during the quarter ended September 30, 2023. The decrease in adjusted EBITDA during the current period is primarily due to higher Marley Drug cost of goods sold, lower AGGRASTAT revenue, as well as higher research and development expenses and general and administrative expenses. Offsetting these increases were decrease in selling expense and higher ZYPITAMAG sales through both the Marley Drug pharmacy business and traditional insured channel. As of September 30, 2024, the company had cash totaling approximately $4.9 million, a decrease from the $6.4 million of cash held as of December 31, 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. 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.
Thank you, Haaris, and good morning, everyone. I would like to start with some further details on our Marley Drug business. For Q3, net revenue was consistent with Q2 at $2.7 million, with a 3.2% increase in ZYPITAMAG sold through the pharmacy business compared to the prior quarter, while there was a decline in some generic medication sales due to pricing competition, which offset overall growth. Year over year, there has been a 16% increase in the volume of ZYPITAMAG dispensed by Marley Drug and an increase in sales from $670,000 in Q3 2023 to $815,000 in Q3 2024. Medicure is working on leveraging Marley Drug's reputation for customer service and national distribution and more business partnerships. Notably, the sale of BRENZAVVY tablets through Marley Drug, which is an accessible alternative SGLT2 inhibitor to JARDIANCE and FARXIGA , contributed revenue of $336,000 in Q3, which is a 34% increase from Q2.
We continue to see uptake and growth, and we'll continue to focus on it and other branded solutions in 2024. A second recent 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, including through the acquisition of competitor customer bases. Challenges we've faced include competition and fluctuation in cost of goods, which impact our margins, as well as lowering our customer acquisition cost as much as possible. Further on, ZYPITAMAG net revenue through insured channels and the standard retail pharmacy model fell from $654,000 in Q2 2024 to $553,000 in Q3 due to a modest decrease in purchasing from wholesalers and changes in the mix of our insured customers.
We completed the process of consolidating our insured customers through Marley Drug instead of other retail pharmacies, as this approach is much more profitable for the company. Patients still have challenges in accessing ZYPITAMAG through their insurance coverage, which is a 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. In terms of our AGGRASTAT business, net revenue rebounded slightly in Q3 despite generic tirofiban and competition, and as a result, revenue increased from $1.8 million in Q2 2024 to $1.9 million in Q3. Medicure remains the only manufacturer of the 3.75 milligram bolus vial format, which is typically administered before the infusion unit.
We continue to provide support to our U.S. hospital accounts and plan to remain price 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 MC1 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. If successful, use of Medicure's legacy product MC1 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 enrollment has now started, with patients receiving treatment with MC1. Medicure also recently received fast track designation for MC1 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 MC1 tablets to speed up absorption based on feedback from clinicians and therefore are in the process of producing that batch of product for patients waiting to enroll. Medicure recently announced that it had signed an asset purchase agreement for the acquisition of the patent and intellectual property related to the discovery of New Chemical Entities that can be developed for therapeutic use.
We believe that the New Chemical Entities hold 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 the required non-clinical and clinical studies and regulatory approval. Despite similar overall revenue in Q3 compared to Q2, because of higher Marley Drug cost of goods, lower overall AGGRASTAT revenue, as well as higher R&D expenses and general and administrative expenses this quarter, we are reporting a negative EBITDA of $467,000, but through the settlement of a product development and supply contract in the amount of EUR 1.5 million, we are reporting a net income of $680,000 for the quarter.
Medicure remains debt-free, and to reiterate, the company's short-term goals are focused on maintaining AGGRASTAT , growing ZYPITAMAG and Marley Drug sales, growth of our pharmacy business through partnerships and acquisition, and development of new products. Short-term, seeking the approval of MC1 to receive a 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. The overall revenue was consistent with last year. There were significant developments through the development of MC1 for PNPO disease and the acquisition of Marley Drug, which strongly complements Medicure's business, including the sales and marketing of ZYPITAMAG. We remain focused on growing the business and diversifying our revenue and asset base near-term through acquisition and long-term through R&D, carefully investing to grow for future profitability. My goal and that of our board, management, and staff is to continue to build this business with a stable long-term outlook to generating value for our shareholders. And as always, I want to express my appreciation to our outstanding team of employees we've been blessed with. Thank you, our shareholder, for continued support and interest. And now I'll turn it over to the moderator for our Q&A. We welcome your questions. Thank you.
Thank you very much. We will now begin the question and answer session. If you have a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. For any participants using speaker equipment, it may be necessary to pick up your handset before you press the keys. One moment while we poll for questions. Okay. star one if you would like to ask a question. I'm not seeing any questions come into the queue. Just wait a moment in case somebody does. Okay. It doesn't appear to have any questions coming in at this time.
Thank you, moderator, and thank you all on the call. We're wishing you, those in the U.S., a very happy Thanksgiving, good long weekend for family and friends, and thank you for being on the call. Look forward to our next call.
Thank you very much.
Bye for now.
This does conclude today's conference. Thank you for participating. You may now disconnect.