Good morning. Thank you for joining the BioSyent presentation. My name is René Goehrum, and I am the President and CEO of the company. Before I dive in, I would like to bring your attention to our disclaimer. There will undoubtedly be forward-looking statements. Currency in this presentation is CAD, unless we specify otherwise, but I do not think there is any other currency in the presentation. BioSyent is a Toronto area healthcare products company. We have got two commercial platforms. One for commercializing spec pharma products and the other for commercializing oral health products. We have separate commercial organizations for both sales forces that interact with customers. In the case of our Canadian business, that is with healthcare professionals, whether they be in doctors' offices or dental clinics. We also communicate directly with patients, to promote the benefits of our products.
In some cases, we sell essentially direct to consumer as well for those products that can be sold without prescription. Our business today is more than 90% revenue generated from the Canadian market. We do have sales outside of Canada. We have got customers for a number of our products outside of Canada, and I will speak a little bit more about that as we move forward. What do we do? We distribute products in Canada and internationally that are unique and differentiated, solve a problem that exists for the doctor, the dentist, the dental hygienist, or the patient. We source these products globally through in-licensing and acquisition. We have built our portfolio using both methodologies, and we will be continuing to do so.
We focus on products that are already in market or proven somewhere or that we have a high confidence level are going to have some success in the marketplace and that are faster to market. We are not an early-stage investor. We are not an R&D shop per se, although I have something at the bottom of the slide that says otherwise. Really our lifeblood of a business like ours is to find these differentiated products around the globe and in-license or acquire those assets. We are a branded products company that is really important to understand about what products we bring to market. We are not a me-too company. We really focus on building brands, and that is through marketing communication with healthcare professionals and patients directly.
Typically, our products are higher value add and higher priced versus other options in the market. I did mention that we are not an R&D company.
We do not think of ourselves as that. We are not kind of safety glasses and lab coats running around. We find these assets that we in-license or acquire externally, but we have done some development work on assets that we own. So where we own the brand, we will do some investment, but it is more development investment as opposed to research. If there is one slide that you remember from this presentation, it would be this one. We have been, over a long period of time, a high growth rate company. We have a 15-year compound growth rate. This is to December 31st of 2025. So a high growth rate. This does not yet include a significant acquisition that we made earlier this year that I will talk about a little bit.
Our portfolio, so the assembly of all of the assets and brands that we own, we assess to be well in excess of CAD 100 million of peak penetration revenue potential. We came profitable mid-year, I think it was Q2 of 2010, and we've been profitable since then consistently. 64 consecutive quarters of profitability, and I can say I'm not letting too much out of the bag that when we put out our Q3 numbers in a few weeks' time, that number will tick over to 65. We've been buying back our shares now for eight years. We started in Q4 of 2018. We've been buying back our shares consistently, and I've got a little bit of data on that. We're also a dividend payer. We started paying a dividend at the end of 2022, and so we're just in the process of completing 16 quarters of paying a dividend.
I know that small-cap and micro-cap investors like to look for insider ownership. Our management and Directors collectively own 27% of the company. I'm not going to spend too much time on financial results. This is information that you can find very easily. I'm really appreciative of the fact that you guys aren't all looking at your phones right now. That's very nice. This is a Q2 look, 2024, 2025, 2026. Bring your attention to the right-hand side of the screen, the green boxes. Our revenue in Q2 was CAD 20 million. That was with only one month of a significant acquisition. We acquired Oral Science on March 1st, 2026. My apologies. Got my math wrong. We acquired the business on March 1st, 2026. We only had one month in the first quarter. This is our first full quarter of Oral Science included in our business.
A CAD 5 million EBITDA for the quarter. Net income solidly up and our earnings per share. One stat that you may not see in many other presentations is return on equity. We like to focus on quality. I talked about the fact that we promote brands. We are not just focused on revenue growth at any cost. It's really important to us that there's quality in the earnings, and so we track and have objectives around our return on equity. First half results, this explains why the growth rate not quite as much because we had Oral Science come into our business only on March 1st . Strong performance on a revenue and earnings basis, EPS for the first six months of the year of CAD 0.45.
If we stretch out a little bit and we take a look at the last 12 quarters of earnings per share, you can see a solid progression from CAD 0.60- CAD 0.85. This is TTM now, TTM June 30th. You see in the green box, a small adjustment. We obviously had some significant transaction expenses, so if you adjusted those transaction expenses and considered them one time, our EPS was CAD 0.89 for the trailing 12 months, June 30th. I mentioned before that we've been buying back shares for a number of years. We track and we've got some discipline around how we allocate capital to buying back shares and what price we're willing to pay for our own stock. I've heard it described as eating ourselves. We won't eat ourselves at any price, and so we've got some discipline around that.
Our calculation is that we have enhanced our EPS by $0.19. It roughly works out through the whole period of time we have been buying back our shares at about 15% per year of increased value. This is a look I mentioned before, that we became profitable mid-year in 2010. In 2010 full year, we made some money. I got a call right away from somebody, literally at that time, and said, "Okay, when are you going to start paying a dividend?" I said, "Just hold off a little bit. Let us build the business. Let us build a little bit of momentum, and then maybe." They had to wait a few years. You see in this graph, when we became profitable, we had two products. We had a legacy product and another, FeraMAX 150 in the market.
The green bars essentially illustrate our revenue growth or revenue, and you can see the revenue growth rate. This is for the period ending last December 31st, so this is 2025, and the blue line is profitability. That obviously came along with the revenue growth. While we were growing revenue 26 x and our net income 173 x, we were buying back our shares. On the bottom left, you see we had fully diluted 14.3 million shares when we came profitable back in 2010, and now we are about 11.2 million shares. I would point out the product portfolio on the right-hand side are only our spec pharma products because we had not yet acquired Oral Science as of December 31st, 2025. Oral Science, we acquired March 1st.
We paid CAD 25.5 million for what is now our oral health platform, a second growth platform in our business. That acquisition came with CAD 6.3 million of working capital negotiated as part of the transaction. It came, in fact, with more than that in cash and inventory and receivables, so we paid another CAD 1.85 million for that excess working capital. We do have a performance earn-out based on the profitability on a layered basis over a couple of years, and we expect to have that final performance earn-out paid by roughly the end of Q1 next year. We have also agreed to pay royalties on one product out into the future for a defined period of time, not indefinite. In essence, we bought Oral Science for less than 6x EBITDA. The company itself has been around for 23 years. It is based in a suburb of Montreal.
About a third of the revenue of Oral Science, as we bought it, came from brands and assets that they own and about two-thirds from in-licensed. A very similar business model to our specialty pharmaceutical business. Look for innovative products that solve problems and promote them to healthcare professionals. The leadership of Oral Science that was in place that founded the business is now part of BioSyent, and they continue to lead the oral health segment of our business. Last year, Oral Science had in ASPE, so private company accounting, had just over CAD 31 million of revenue and CAD 4.4 million of net income before tax. Had a long track record of growth, from 2018 through 2025, grew at about a 15% compounded clip.
What we're really proud of is that the transaction wasn't just good for boosting sales and a promise of in the future we're going to make some money, but we made money right away. In fact, in the first quarter, we had a financial benefit of the acquisition, including all of our transaction expenses. Then we overall, for the first four months of ownership, we've added CAD 8.2 million to our revenue and CAD 1.5 million of EBITDA after absorbing all of those transaction expenses. This is what our brand wall looked like when we were a spec pharma company only. This is now what our brand wall looks like. You can see significant growth in the assets that we've got that we can offer to healthcare professionals and patients.
If you looked at our business, as if we had owned Oral Science for all of 2025, our business would've been, it's a bit speculative, CAD 73 million in sales. And we would've had CAD 16.5 million of EBITDA. We did last year, some of the numbers that I kind of scrolled through before, we did, as a spec pharma company, CAD 12 million in EBITDA. We add the Oral Science to that for CAD 16.5 million. That gives you a little bit of context of the magnitude of impact on our revenue and profitability. How do we grow forward? We now have two commercial platforms. Each of them provide us a growth leg in our business. We will continue to invest both in pharma and in oral health. We are looking and in the process of adding assets to both platforms.
We see continued growth opportunities both in pharma and in oral health, and we will continue to look at expansion of revenue opportunities outside of Canada. Up till now, Oral Science has had zero sales of their products outside of Canada. That will change. I'm 98% confident. I said some about forward-looking statements. I'm going to say 98% confident that that will change. And of course, we're looking to add additional assets to the spec pharma platform. We are already selling a couple of brands that we own outside of Canada. Couple quick highlights for the year. I'd mentioned we've been a dividend payer, so we pay a $0.055 dividend per quarter per share. The three-year CAGR on that is 11%. We've repurchased 326,000 shares. It's important to know we're paying a dividend, but we are a growth company. We're buying back our shares.
FeraMAX, I'm going to not spend too much time. I've got something in a moment on FeraMAX, but it's well recognized in the Canadian market as the top-selling oral iron supplement. We received Health Canada approval of Thyconvi, a new thyroid medication that is coming to market in the first quarter of next year. And we were recognized by The Globe and Mail, the Report on Business, as one of Canada's top growing companies. I won't go into a big therapeutic talk about levothyroxine. Our Thyconvi product is a liquid form of levothyroxine, one of the most prescribed medications in Canada. I would venture to say that somebody in this room is either on that medication or knows somebody, a family member, for pretty directly. It's a highly prescribed medication. Essentially, our solution is a solution. It's a liquid version of this medication.
It is for those that have difficulty in swallowing tablets and pills, and those that have complex dosing regimens. It is a drug that you do not always take the same amount every day. Through pregnancy, the amount of levothyroxine you need may vary based on body weight and development gestation. This is something that solves a problem that exists in the marketplace and we expect. We have already had some positive feedback from healthcare professionals and we have never had a product that we are six months out or nine months out from launching, where people are phoning us and asking us, "Where can I buy it? How do I get it?" We have pharmacies calling us and hospitals. We are quite excited by that.
We also have private payers committing to open benefits that approximate about 50% of patients that are covered under these private plans, and we expect that to continue to improve as we move towards our launch date. I mentioned FeraMAX. It has been in market now for a decade and a half. It is the number one selling oral iron supplement. It is the most recommended by doctors and pharmacists right across Canada. We have built a tremendous amount of trust and loyalty amongst both doctors and patients with this product, and it has been a big part of our growth story as we have moved forward. I would say I am happy to see that it continues to grow, but it continues to contribute, or it now contributes a much smaller part of our overall revenue.
As you look at our business and think about, okay, how are they going to grow and where are they going to go? We see growth coming from the Thyconvi launch. This will be a steady Eddie business. It is very sticky. The patients on this medication are essentially lifetime levothyroxine, for the most part, lifetime levothyroxine users, and the experience in other markets where this has been launched is it is a very sticky business. It is just a long-term build. We see growth opportunities in our oral health business. It is over-performing our expectation already. In a few days, it will be eight months of ownership. We have been working on a number of initiatives around the life cycle for FeraMAX. We have introduced new products, new formulation.
We have got some other technology things that we are able to add value to the patient and the healthcare professional.
We have a new product coming 2028, a new product for a new use case. It is not just a different strength or a different flavor, it is actually a different use case for FeraMAX. As I mentioned, we are not an R&D company, so the beat of the drum is in licensing and acquisition, and that is an ongoing process. A lot of numbers. Just look at the very bottom of the page. We borrowed CAD 8 million for the Oral Science acquisition. By the end of the first month of ownership, we had already started paying down that debt and, on October 1st, we paid back the balance of the debt. We are debt-free now.
I have been using a version of this slide now for a number of years, and in the past, we had a lot of cash on the balance sheet in relationship to our revenue, and I got a lot of questions about, "Well, what are you going to do with the money?" I think now people understand we were just waiting for the right opportunities to make sure that we are buying well, something that we think that we can generate both growth and good returns. We have been launching branded products. Oral Science was our second acquisition in a year and a half or just in under two years. We have deployed into acquisition about CAD 30 million. Our balance sheet, as I said, we are debt-free and we are cash generative. That is an ongoing process.
We expect that by the end of next year, our cash position will be very similar to what it was the day before we acquired Oral Science. We are cash generative. We are looking for opportunities to deploy capital. We are not waiting till the end of next year. That is an ongoing process. We have a capital-light business model. Our focus is to grow revenue and grow profitability, diversify our portfolio of products, and think long term about the business. The acquisition of Oral Science didn't change that. That is a capital-light business model. As a result, we are going to continue to pay dividend. It is not something you initiate and start and decide, "Oh, I think flavor of the month, we are going to change that."
We are going to continue to pay dividend, and we are going to continue to buy back shares. We have bought back 326,000 shares already this year.
Hopefully, I have left some time for questions. Tom?
First of all, I would like to formally apologize for the dividend harassment 16 years ago. I didn't know you were going to out me today. René, can you walk us a bit deeper into this acquisition strategy? What was their thinking in selling to BioSyent? Did they want to more aggressively grow the company, and you provide that financial backing? Just walk us through that a little bit more, and then I have one more follow-up on-
Okay
FeraMAX after that.
There were some shareholders that were in Oral Science in the business, were operating, founders and operating the business. There were some shareholders who were outside the business. Those external shareholders were of a vintage that had an interest in liquidity and kind of had a little bit less runway. It made sense for their shareholder group. There are a number of individuals that are in the business, that love the business and want to stay in the business and are going to continue to be with the business. That was really the motivation. They weren't in the process of selling themselves, but they were thinking about the future and the timing was right for that.
You see it as an energizing, a real growth?
Yeah, this is a growth story. We're growing the business right now. It's outperforming our expectation. There are some things around profitability that we've paid particular attention to. It's been very entrepreneur driven and we're just bringing a little bit of different focus around business process and business development and how to leverage international growth opportunities. It's been a process, a little bit of focus, and ambition.
Great.
Yeah.
Yeah. Just one follow-up on FeraMAX. In the past, you've had some very encouraging international forays and stuff.
Yeah.
But that seems to come and go. Can you speak to that?
Yeah. The business is now close to generating revenue on a quarterly basis outside of Canada. It's still modest. The combination of Tibelia, which is a business that we bought a couple of years ago, and FeraMAX. Tibelia's got 20 customers globally, 22 customers. The combination of the two are still only about 5% or 6%, maybe 6%, 7% of the business. But we are working on a couple of initiatives that would see the geographic expansion that you saw earlier in the presentation. Yeah. But I wouldn't think of it as a massive growth driver at this point. There's one specific thing that we've got kind of in the process that could be interesting.
You mentioned at the beginning of your presentation that your U.S. business represents only 10%. How come is it so low, and what are your initiatives to make it grow? Do you feel comfortable? Of course, you seem to be very comfortable with the Canadian market, but would you have to have a sales force?
Yeah
based there or anything?
Our business outside of Canada is not in the U.S. We have one legacy product. I won't bore you with the detail, but we have one legacy product that has some customers in the U.S. I would say that one tenth of 1% of our revenue comes from the United States. The second part of your question is why so low, or how will you try to grow? At the risk of saying something that I shouldn't, Robert J. March, my CFO, is sitting in the front row, and he's going to kick me in the shins. I'm just going to say, we're looking at opportunities. We've found a way nicely to grow our business and create value for shareholders without the U.S. market.
You may have heard there's a little bit of a trade war going on, and I don't know how long that's going to last and what it's going to look like. We're going to keep working on growth, that's important to us. And yes, the U.S. is right there. If the timing is right with the right assets and right opportunities, we would pursue. But to me, we're a growth story, we don't need the U.S. Okay. Anyone else?
[inaudible]
Yeah, we have in-licensed medications that didn't work out. I would say, broadly speaking, if you look at the data on success rate of pharmaceutical product launches, a surprisingly high number never get to what the expectation was. Thankfully, we're not an R&D company, and we haven't sunk CAD 5, CAD 10, CAD 20, and CAD 50 million into the development of those assets. I would say the learnings are, they're iterative in that, who were we as a company seven, eight years ago, and what are the assets that we thought were interesting and could make an impact on our business? I think we're spending more time looking at patient pathway. I think we're looking more at not assuming that the success that we've had with FeraMAX can translate to the go-to market for other products. I want to be careful.
It's not like, "Oh, FeraMAX has worked, everything else will." But there was a certain angle to where FeraMAX was positioned on a distribution basis that we thought we could emulate with some other products, and we have not been able to do it. In one case, the learning was almost impossible to know in advance. We had a product that got copied by a major global company that we did not see coming. There was no data on it. By the time we came with it to market, they were there. I'd say that stunted the growth of that asset. There's not one kind of rifle shot that answers everything. But I'd say, we're very thoughtful about it. And then when we have an asset that isn't performing, we will pivot. We'll try to pivot. We won't just abandon, but we won't try to push water uphill. Yeah.
Yeah. No, thank you. So it seems like, look, from the presentation, you're doing it all, tons of growth, NCIB dividend, and M&A. It looks like you've also gotten to a scale where presumably you can press on one of them a little bit harder, and I'm thinking potentially M&A. Is there a framework that you're looking at? Should we expect as investors that there could be a little bit of a push/acceleration there?
I think you could think that just based on our ability to generate the cash to finance at scale larger acquisitions. I would caution everyone that we are not an M&A roll-up machine. We do not see ourselves as that, although we obviously have experience doing M&A. We continue to look at opportunities. That is an active process. So we are continuing to work and look, but it may be some time before we see the right thing. I think if we just wanted to get bigger and do M&A, we could do it. But we want to make sure that there is a return on investment. And I have observed the Canadian spec pharma market for a decade and a half, and I have witnessed a lot of value destruction. So we will be really thoughtful about what we do. Yeah.
Great.
Okay. Thank you.