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Merus Labs International Inc. Announces First Quarter Results for Fiscal 2013

Merus Labs International Inc. Announces First Quarter Results for Fiscal 2013 
TORONTO, ONTARIO -- (Marketwire) -- 02/13/13 -- Merus Labs
International Inc. ("Merus" or the "Company") (TSX:MSL)(NASDAQ:MSLI)
is pleased to announce today its financial results for the first
quarter of fiscal 2013. The results from the first quarter of fiscal
2013, for both revenue and earnings, exceeded management's
expectations.  
For the three months ended December 31, 2012, the Company earned net
income of $297,541 compared to a net loss of $295,444 for the three
months ended December 31, 2011. For the three months ended December
31, 2012, EBITDA was $4,820,381, compared to ($692,705) for the same
period last year. Adjusted EBITDA, which adds back non-cash share
based compensation expense and acquisition costs, was $5,207,641,
compared to ($216,351) for the prior year comparative period 
Revenues for the three months ended December 31, 2012 were
$6,979,044, which were comprised of sales of Vancocin, Factive, and
Enablex. Gross margin during the same period was $6,614,204 (95%).  
Per the Company's service agreement with the vendor of Enablex(R),
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 three
month period ended December 31, 2012. Had the Company reported
Enablex on a gross basis for the current period, revenues, cost of
goods sold and sales and marketing expenses would have been higher by
$2,271,661, $1,307,286 and 964,375, respectively. EBITDA would be
unchanged. For the three months ended December 31, 2012, the
in-market net sales for Enablex were $6,631,633. Revenues, recorded
on a net basis were $4,360,052 after deducting costs of goods sold
and marketing costs. The Company did not own Enablex(R) during the
comparative three month period in 2011.  
For the three months ended December 31, 2012, the net sales for
Vancocin were $1,916,098. For the comparative three months ended
December 31, 2011, the net sales recorded in the Company's pro-forma
statements of operations which reflect the net sales of Vancocin if
the Company had acquired Old Merus as 
of October 1, 2011, were
$2,795,539. The decrease of approximately $879,441 was primarily due
to the entry of a generic Vancomycin which received reimbursement
status in several provinces during the Company's fiscal 2013 first
quarter.  
For the three months ended December 31, 2012, the net sales for
FACTIVE(R) were $702,894. The Company did not own FACTIVE(R) during
the comparative three month period in 2011. 
"We are pleased with the results of this quarter and have gained
significant financial traction highlighted by in-market net sales of
$9.3 million and adjusted EBITDA of $5.2 million. During the quarter
the Company paid down approximately $5 million in debt and subsequent
to quarter end entered into promotion and distribution agreements
with selected partners in certain European countries for Enablex(R)
to drive top line growth for the product. We have also made great
progress from a day to day operational perspective which will serve
the Company well as we complement the existing portfolio with future
product acquisitions," said Elie Farah, President and CEO of Merus
Labs International Inc. 
Management's discussion and analysis, containing a full analysis of
financial results, is available on EDGAR (www.sec.gov/edgar.shtml)
and on SEDAR (www.sedar.com). 
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 pharmaceutical markets and its access to
capital to acquire and license niche branded products. Merus further
enhances the sale and distribution of these products by the
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.
Contacts:
Merus Labs International Inc.
(416) 593-3725 
Or contact our investor relations department at:
info@meruslabs.com
 
 
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