MediPharm Labs (LABS) posted revenues of only C$5.5 million and a net loss of C$13.9 million for the first quarter of 2021.
Revenue was down 9.9% quarter-over-quarter from the C$6.1 million in revenue the company posted in Q4 2020. Domestic sales fell 40% quarter-over-quarter to C$3.4 million, while international sales increased to C$2.1 million. Medipharm’s CFO Greg Hunter said that operating conditions in Canadian retail channels were challenging.
Adjusted EBITDA came in negative at approximately C$6.16 million, an improvement over a loss of C$8.77 million in the prior quarter, but a deterioration from a loss of C$5.66 million in the same quarter of 2020.
Meanwhile, net loss amounted to approximately C$13.9 million, after decreasing 55% sequentially and 37% year-on-year. The Canada-based medicinal company achieved cost savings of over C$1.5 million in the quarter.
MediPharm’s President and Interim CEO said, “We commenced 2021 focused on establishing our presence as a pharmaceutical company while ramping up and significantly growing our international sales. We achieved several important milestones, including initial sales of GMP-certified medical cannabis products in Germany under our long-term partnership agreement with STADA Arzneimittel AG, a market leader in consumer healthcare and generics, and our first medical cannabis exports to Peru. Demand signals for our MediPharm cannabis oils were strong across all distribution channels in Canada. We made strong progress actively managing our cost structure which led to a 30% expense reduction, and we remain focused on returning to profitability.”
MediPharm wants to become the leader in the emerging global pharmaceutical, medical, and wellness cannabis market. (See MediPharm Labs stock analysis on TipRanks)
In April, BMO Capital analyst Tamy Chen maintained a Hold rating on LABS with a $0.60 price target, for 50% upside potential.
Overall, consensus on the Street is that LABS is a Hold based on 1 Buy, 1 Hold, and 1 Sell. The average analyst price target of C$0.70 implies 75.8% upside potential from current levels. Shares have dropped nearly 80% over the last year.