Welcome to Medicure's earnings conference call for the quarter ended June 30th, 2026. 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. Private 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 17th, 2026.
I would now 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 welcome to all on the call. We appreciate your interest and participation in today's call. Joining me today on the Q2 2026 conference call is James Kinley, Medicure's Chief Financial Officer. Net revenue for the quarter was CAD 7.4 million, compared to CAD 6.7 million for the quarter ending June 30th, 2025. The company recorded a net loss for the quarter ending on June 30th of CAD 1.4 million, or CAD 0.14 per share, compared to a net loss of CAD 786,000 for the quarter ending June 30th, 2025. The net loss is due largely in part to the CAD 864,000 rebate liability recorded in the selling expense pertaining to the Centers for Medicare & Medicaid Services assessment. CAD 608,000 invested also in R&D, primarily for the MC-1 for the treatment of PNPO deficiency.
In addition, a non-cash item of CAD 669,000 of amortization on the assets related to the purchase of ZYPITAMAG and the pharmacy businesses. Medicure's continued investment in research and development during the current year underscores our commitment to advance innovative therapies such as the phase III trial for Medicure's MC-1 for the treatment of PNPO deficiency. Just a reminder, the five focuses of our business are the sales of AGGRASTAT, growing ZYPITAMAG, the Marley Drug and pharmacy business, development of MC-1 for the PNPO deficiency, and a new chemical entity related to Medicure's legacy drug. I would like to turn the call over now to the CFO, James Kinley, to review and provide color on the Q2 statements.
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 30th, 2026, along with previous financial statements on the Investors page of our website. In addition, a copy of all financial statements and management discussion and analysis can be obtained from sedarplus.ca. I will now provide some key highlights of our financial performance for the quarter ended June 30th, 2026.
Total net revenue for the quarter ended June 30th, 2026 was CAD 7.4 million, compared to CAD 6.7 million for the quarter ended June 30th, 2025. Net revenues earned from AGGRASTAT during the current period totaled CAD 661,000, a decrease from the period ended June 30th, 2025, where net revenue from AGGRASTAT was CAD 1.7 million.
The decrease in AGGRASTAT revenue during the current period is the result of lower volume of units sold as a result of increased competition from generic tirofiban hydrochloride. Medicure remains the only manufacturer of the 3.75 mg 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. Net revenues earned from ZYPITAMAG through the traditional insurance channel during the period ended June 30th, 2026 totaled CAD 850,000, which is an increase from the CAD 751,000 of net revenue earned during the quarter ended June 30th, 2025. The increase in net revenue noted during the current period is attributable to higher utilization of the product through insurance formularies. The primary focus of the company continues to be growing ZYPITAMAG revenue through the insured channel and through Marley Drug throughout 2026.
It is important to note that the sales of ZYPITAMAG through Marley Drug are excluded from the number previously mentioned. With regards to Marley Drug, net revenue during the quarter ended June 30th, 2026 totaled CAD 3.4 million, an increase from the CAD 3.1 million earned from Marley Drug during the quarter ended June 30th, 2025. Net revenue attributable to ZYPITAMAG through Marley Drug was CAD 1.3 million during the current period, an increase from June 30th, 2025, where ZYPITAMAG sales were CAD 908,000 through Marley Drug. The increase in revenue through Marley Drug is attributable to increased ZYPITAMAG sales, in addition to an increase in other exclusive products that are offered through Marley Drug, including BRENZAVVY. We continue to see access challenges for patients seeking ZYPITAMAG through traditional insurance channels, which has reinforced the effectiveness of our direct distribution strategy through Marley Drug.
This approach allows us to mitigate pressures associated with wholesaler fees, coverage gaps, lower PBM reimbursement rates, and product returns. As a result, Marley Drug provides a more efficient and controlled channel to deliver ZYPITAMAG to patients. Additionally, this platform enables us to expand access to other products such as BRENZAVVY, further strengthening our competitive positioning within the retail and mail-order pharmacy landscape. In the prior year, the company made two acquisitions. On March 11, 2025, the company acquired Gateway Medical Pharmacy, an independent pharmacy located in Portland, Oregon, which also has the ability to complete non-sterile compounding. Revenue for Gateway Medical Pharmacy during the current quarter totaled CAD 709,000 in comparison to CAD 764,000 during the period ended June 30th, 2025. On June 16th, 2025, the company acquired West Olympia Pharmacy, an independent pharmacy located in Olympia, Washington.
Revenue earned from West Olympia Pharmacy during the current quarter was CAD 1.8 million, in comparison to CAD 328,000 during the quarter ended June 30th, 2025. It is important to note that the revenue earned from Gateway during the prior period was only from June 16th, 2025, its acquisition date, until June 30th, 2025. Total cost of goods sold for the quarter ended June 30th, 2026 was CAD 4.2 million, an increase from the quarter ended June 30th, 2025, where cost of goods sold was CAD 3.2 million. AGGRASTAT cost of goods sold for the quarter ended June 30th, 2026 totaled CAD 456,000, a decrease from the quarter ended June 30th, 2025, where cost of goods sold totaled CAD 693,000. The decrease in cost of goods sold is directly attributable to the decrease in revenue from AGGRASTAT during the current quarter.
ZYPITAMAG cost of goods sold for the quarter totaled CAD 357,000, an increase from the quarter ended June 30th, 2025, where cost of goods sold totaled CAD 233,000. Included within cost of goods sold for ZYPITAMAG in the current quarter is CAD 76,000 relating to products sold to customers and CAD 157,000 from amortization of the ZYPITAMAG intangible assets. The increase in cost of goods sold for ZYPITAMAG during the current quarter is correlated with the increase in revenue through the insured channel. Marley Drug cost of goods sold totaled CAD 1.6 million during the quarter ended June 30th, 2026, up slightly from the quarter ended June 30th, 2025, where cost of goods sold totaled CAD 1.5 million. Although revenue through Marley Drug has increased during the current quarter, cost of goods sold remains fairly consistent due to better purchasing contracts through the pharmacy.
Gateway Medical Pharmacy's cost of goods sold during the current quarter was CAD 599,000, in comparison to CAD 531,000 during the quarter ended June 30th, 2025. West Olympia's cost of goods sold during the current period was CAD 1.2 million, in comparison to CAD 241,000 during the quarter ended June 30th, 2025. Given West Olympia Pharmacy was acquired on June 16th, 2025, cost of goods sold attributable to West Olympia Pharmacy was much lower during the period ended June 30th, 2025. Our three pharmacies, Marley Drug, Gateway Medical Pharmacy, and West Olympia Pharmacy, make up the company's pharmacy business segment. The company has seen improvements on its inventory purchasing as a result of these acquisitions and is looking at further ways to capitalize on the synergies created as a result of these acquisitions to improve the company's financial performance.
Selling expenses totaled CAD 2.8 million for the quarter ended June 30th, 2026, an increase from the quarter ended June 30th, 2025, where selling expenses totaled CAD 2.1 million. The increase in selling expenses during the current quarter in comparison to the prior quarter primarily relate to the rebate liability recorded in selling expenses pertaining to the CMS assessment, as well as the acquisition of West Olympia Pharmacy during the comparative period. Offsetting the increase from these acquisitions are decreases in consulting and marketing expenses as the company is focused on allocating its resources to initiatives which provide the greatest return on investment. General and administrative expenses totaled CAD 1.2 million for the quarter ended June 30th, 2026, consistent with the quarter ended June 30th, 2025, where general and administrative expenses totaled CAD 1.3 million.
Despite the addition of West Olympia Pharmacy during the comparable period, general and administrative expenses decreased. This can be attributed to a decrease in professional fees incurred. Research and development expenses for the quarter ended June 30th, 2026 totaled CAD 608,000, compared to CAD 741,000 during the period ended June 30th, 2025. The decrease in research and development expenses during the current period is primarily due to the timing of the expenditures. The primary development project for the company continues to be MC-1 for PNPO deficiency. The company recorded finance expense of CAD 13,000 during the current quarter in comparison to finance income of CAD 20,000 during the quarter ended June 30th, 2025. The finance expense recorded during the current period primarily relates to the company's lease obligations and holdback payable, offset by interest income during the current period.
The company recorded a foreign exchange loss of CAD 13,000 during the current quarter in comparison to a foreign exchange loss of CAD 49,000 during the quarter ended June 30th, 2025. The change in foreign exchange loss relates to changes in the U.S. dollar exchange rate during the respective periods. Adjusted EBITDA for the quarter ended June 30th, 2026 was CAD 172,000 compared to adjusted EBITDA of - CAD 28,000 during the quarter ended June 30th, 2025. The improvement in adjusted EBITDA during the current year is due to an increase in net revenue of ZYPITAMAG through both the insured channel and through Marley Drug, increased revenue from the company's pharmacy business segment, offset by a decrease in net revenue from AGGRASTAT and an increase in cost of goods sold, primarily due to the pharmacy business segment.
As of June 30th, 2026, the company had cash totaling CAD 1.8 million, a decrease from December 31st, 2025, where the company had CAD 3.8 million of cash held. The decrease in the cash balance of the company is primarily attributable to working capital changes, including inventory purchases, as well as a payment pertaining to the acquisition of Gateway Medical Pharmacy. 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 and the company as a whole. With that, I'd like to turn the call back to our CEO, Dr. Albert Friesen, for some additional comments and closing remarks.
Thank you, James. Overall, the company's revenue is increasing by and large through increased sales of ZYPITAMAG and the acquisition of Gateway Medical Pharmacy and West Olympia Pharmacy. Medicure's R&D focus is primarily the phase III study, seeking 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 ultimately fatal if untreated. If successful, use of Medicure's legacy product, MC-1, could lead to a Priority Review voucher, which can be redeemed, sold, and provide significant value. Enrollment is currently ongoing with patients receiving treatment with MC-1. Medicure has received Fast Track designation for MC-1 for its intended indication and which will facilitate a rapid review by the FDA. We have one patient completing three years of treatment, one patient two years, and a few at 12 months successfully.
We're about to wrap up the enrollment phase, and then the next phase is collecting the data and filing. Medicure has previously announced that it had signed an asset purchase agreement for the acquisition of a patent and intellectual property related to a discovery of new chemical entities that can be developed for therapeutic use. We believe the new chemical entities hold a promise to provide improvements over existing lead compounds in alignment with the treatment of diseases which Medicure is targeting. These could provide significant long-term value upon completion of all required preclinical and clinical studies and regulatory approval. Medicure is yet to announce a clinical therapeutic target. However, it has started the preclinical testing and API drug development. We are still focused on growing the business, diversifying our revenue and asset base near-term through our acquisition and long-term through research and development.
My goal and that of our board, management, and staff is to continue to build this business with a stable, long-term outlook, generating value for our shareholders. 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. Holly, I'll turn it back to you for the Q&A.
Thank you. We will now begin the question- and- answer session. If you have a question, please press star then one on your touch- tone phone. If you wish to be removed from the queue, please press star two. If you're using a speakerphone, you may need to pick up your handset first before pressing the numbers. Once again, if you have a question, please press star one. One moment, please, while we poll for questions. As a reminder, if you would like to ask a question, please press star one. We have no questions in queue at this time. I would now like to turn the floor over to Dr. Albert Friesen for closing remarks.
Again, thank you for taking the time to be on the call. We look forward to sharing our results for the next quarter. Thank you.
Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.