MediPharm Labs Corp. Q1 Revenue Grows 20% YoY, Achieves First Quarter Of Positive Adjusted EBITDA

MediPharm Labs Corp. LABS MEDIF MLZ announced financial results for Q1 2023, revealing EBITDA growth over the past two years and a significant reduction in losses to CA$2.1 million.

Q1 2023 Highlights

  • Adjusted EBITDA of $2.31 million (CA $3.1 million) with the inclusion of a one-time reversal of bad debt collected.
  • After acquiring VIVO Cannabis Inc. on April 1, 2023, MEDIF has taken steps to decrease the combined non-direct labor workforce of MediPharm and VIVO by around 30%. This strategic reduction is projected to result in annualized savings of over $4 million. The company aims to achieve positive EBITDA synergies between $7 million and $9 million on an annualized basis as it moves forward.
  • Q1 2023 saw growth in revenue of 20% on a year-over-year basis and slightly increased quarter over quarter despite the seasonality of the Canadian adult-use market. Operating expenses reduced by 47% as compared to Q1 2022.
  • Gross profit was positive for the second consecutive quarter.

"Revenue, gross profit, and EBITDA all improved versus the prior year, versus the prior quarter, and versus trailing twelve months. All key metrics both financial and non-financial are going in the right direction and according to plan," said David Pidduck, CEO of MediPharm Labs. "We are exactly where we planned to be for readiness to implement the VIVO integration."

Greg Hunter, CFO of MediPharm Labs, said: "In Q1, we continued to make progress by growing our revenue base, improving gross margin, reducing expenses, and reducing cash burn as we drive towards profitability. Sales and Adjusted EBITDA improved year over year and sequentially and gross profit was positive for the second consecutive quarter."


  • In February 2023, MediPharm Labs initiated correspondence with the FDA regarding an on-site inspection related to a Drug Master File submitted as part of an Abbreviated New Drug Application (ANDA) by an international pharmaceutical partner.
  • MediPharm Labs became the first Canadian company to undergo an in-depth review by the FDA for an Active Pharmaceutical Ingredient (API) filing of a natural cannabinoid molecule.
  • In March 2023, one of MediPharm's academic research partners in the US received FDA approval for an Investigational New Drug (IND), allowing participant dosing to commence in the near future.
  • MediPharm entered into a definitive arrangement agreement with VIVO, a company previously listed on the Toronto Stock Exchange, to complete a transformational M&A deal.
  • On April 1, 2023, the Transaction with VIVO was successfully closed. This resulted in MediPharm acquiring several assets, including an EU GMP cultivation site, a Canadian online medical cannabis sales platform, an international branded sales platform in Australia and Germany, and a network of medical cannabis patient clinics.

MediPharm ended Q1 2023 with a robust balance sheet, featuring $20.2 million in cash reserves and full ownership of its assets. The acquisition of VIVO later added two manufacturing facilities, multiple clinics, and land parcels to its portfolio. Additionally, MediPharm incurred a debt of $2.5 million, set to mature in 2024.

Related News

MediPharm Labs Corp. Completes Acquisition of VIVO Cannabis Inc. and Confirms Final Ownership Ratio

MediPharm Labs Begins Restructuring Following Acquisition Of VIVO, Reduces Non-Direct Labor Workforce By ~30%

Photo: Courtesy Of John McArthur On Unsplash

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Posted In: CannabisEarningsNewsPenny StocksMarketsDavid PidduckGreg HunterMediPharm Labs Corp.premiumToronto Stock ExchangeVivo
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