Merus Labs International Inc. Announces Results for Fiscal

Merus Labs International Inc. Announces Results for Fiscal 2012 
TORONTO, ONTARIO -- (Marketwire) -- 01/02/13 -- Merus Labs
International Inc. ("Merus" or the "Company") (TSX:MSL)(NASDAQ:MSLI)
is pleased to announce today its financial results for its fiscal
year 2012. 
For the year ended September 30, 2012, the Company incurred a net
loss of $20,720,548 compared to a net loss of $7,553,936 for the year
ended September 30, 2011. The Company's current year results were
negatively impacted by a non-recurring intangible impairment charge
totaling $22,208,721, of which $5,532,624 primarily relates to the
impairment of the Company's Vancocin(R) product rights resulting from
the market entry of a generic Vancomycin product and the balance of
$16,676,097 relates to impairment of the associated goodwill. For
fiscal 2012, the earnings before interest, taxes, depreciation and
amortization ("EBITDA") was $3,383,219 and the adjusted EBITDA which
adds back non-cash share based compensation expense and acquisition
costs was $6,116,459.   
On a pro forma basis, including the acquired entity's results from
the beginning of the fiscal period in which the amalgamation of Envoy
Capital Group Inc. and Merus Labs International Inc. ("Old Merus")
occurred, Merus' revenues, EBITDA, and adjusted EBITDA for the year
ended September 30, 2012 were $12,904,210, $5,327,737 and $8,060,977,
respectively. The pro forma adjusted EBITDA represents a margin of
62% of revenue and was in line with management's expectations. 
The pro forma revenues for the fiscal year 2012 of $12,904,210 were
comprised of product revenues as follows; Vancocin(R) $9,389,108,
Enablex(R) $2,351,911, and Factive(R) $1,163,191. Vancocin(R) sales
have performed above expectation for the year as the majority of the
sales were achieved prior to market entry of the generic. Enablex(R)
sales are tracking as expected and per the Company's service
agreement with the vendor, Novartis Pharma AG ("Novartis"), during
the operational transition period Novartis will manage the supply,
distribution, and promotion to the market. Consequently, the Company
recorded Enablex(R) revenues net of cost of goods and marketing and
selling expense for the period ended September 30, 2012. Enablex(R)
revenue prior to the operational expenses being deducted was
$3,927,532 for the period from the July 11, 2012 acquisition date to
September 30, 2012. As Factive(R) was acquired in the spring of 2012,
the net sales figure represents the warmer months of the year and the
coming fall and winter quarters will comprise the majority of the
revenue for the product.  
The Company completed its amalgamation on December 19, 2011 and
consequently, the reported results for the year include the revenue
and operating expenses of the acquired entity from December 20
through September 30, 2012.  
Management's discussion and analysis, containing a full analysis of
financial results, is available on EDGAR (
and on SEDAR ( 
About Merus Labs International Inc.  
Merus is a specialty pharmaceutical company engaged in the
acquisition and licensing of pharmaceutical products. The Company
utilizes its expertise in the North American pharmaceutical markets
and its access to capital to acquire and license niche branded
products in Canada and United States. Merus further enhances the sale
and distribution of these products by introduction of a focused
marketing and promotion plan. 
Cautionary Statement  
Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of Section 21E (i)
(1) of the United States Securities Exchange Act of 1934. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Merus' actual results
to be materially different from any future results expressed or
implied by these statements. Such factors include the following:
general economic and business conditions, changes in demand for
Merus' products, changes in competition, the ability of Merus to
integrate acquisitions or complete future acquisitions, interest rate
fluctuations, currency exchange rate fluctuations, dependence upon
and availability of qualified personnel and changes in government
regulation. In light of these and other uncertainties, the
forward-looking statements included in this press release should not
be regarded as a representation by Merus that Merus' plans and
objectives will be achieved. These forward-looking statements speak
only as of the date of this press release, and we undertake no
obligation to update or revise the statements.
Merus Labs International Inc.
(416) 593-3725
Investor Relations department at:
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