Specialty pharma company Medexus Pharmaceuticals (MDP.TO) announced today that it plans to host a conference call at 8:00 am EST on Wednesday November 9th 2022. The call will discuss Medexus’s quarter two results ended September 30th 2022. Financial statements and MD&A are expected to be filed post market on November 8th 2022.

Access code to participate in this call can be found here. A live broadcast will be available on the Investors- News & Events- IR Calendar section of the Medexus website. A replay of the call will also be available roughly one hour following the end of the call through November 16th 2022.

Medexus Pharmaceuticals (MDP.TO) is a specialty pharma company that has been making big moves on the charts. The stock had a rough fall when it came out the stocks major Treosulfan catalyst received a second notice of incomplete response from the FDA. Now, the stock is seeing a solid recovery in anticipation of upcoming earnings.

For those wanting to know more about this stock, in the first week of October 2022, I put out an article titled, “Medexus Pharmaceuticals is not just a Treosulfan stock“. In this article, I outlined the fact that Medexus is a real company with a strong base business. A profitable business too, with revenue streams set to increase due to the Gleolan drug. At the time, the stock was trading at a market cap that was less than the company’s Q1 earnings. The technicals even indicated a basing. Since then, the stock is up over 80%, with the stock being up over 110% when it was at recent highs.

Investors are getting excited due to preliminary revenue results for fiscal Q2 2023 announced on October 6th 2022.

Medexus expects total revenue between $27 million and $27.5 million (all dollar amounts are in US dollars) which will represent the strongest fiscal quarter in the company’s history. This amounts to an increase of at least 51% compared to the $17.9 million in revenues in Q2 2022, and an increase of at least 17% compared to $23 million in Q1 2023. 

The primary driver? Organic increases in net sales across Medexus’s portfolio, which is now including 100% of revenue from Gleolan sales in the US starting September 2022.

Key highlights expected from the Q2 2023 earnings are as follows:

• IXINITY: Positive trend in sales, reflecting new patient conversions on top of a stable, existing base of patients.
• Rasuvo: Continued strong performance, maintaining the product’s leading position in the moderately-growing U.S. branded methotrexate market with a limited sales force allocation.
• Rupall: Continued demand growth, reflecting the peak of Canada’s allergy season during the quarter and successful execution of the company’s sales and marketing initiatives, and sustaining the product’s strong performance over the five years since launch.
• Gleolan: Continued U.S. sales performance in line with expectations, reflecting successful execution of a seamless transition to full U.S. commercial responsibility and putting Medexus in position to successfully execute its commercial plan, including improved sales and marketing initiatives.

CEO Ken d’Entremont said, “We have also now assumed full responsibility for commercializing Gleolan in the United States. We began shipping Medexus-labeled product to customers across the country in August, meaning that September 2022 will be the first full month, and fiscal Q3 2023 the first full fiscal quarter, in which Medexus recognizes 100% of Gleolan net sales. Gleolan sales since March 2022, when we acquired exclusive U.S. commercialization rights to the product, have been in line with our expectations, and we expect to continue that strong performance over the coming months.”

I talked about the solid recovery from all time lows on Medexus shares. The stock recently crossed a major resistance zone at $1.60 which used to be previous all time lows. And took it back with a statement: a large 25% close green candle. Investors can now use this as a base for future support.

To me, investors are beginning to price in solid Q2 2023 earnings.

If we get a strong earnings report, the stock will be able to push above the $2.00 major psychological zone. In truth, the next major resistance level comes in at $2.50. This would be my first target to the upside post $1.60 break. My second target would be $3.40.

Yes, the stock saw a hiccup with the FDA which has pushed the Treosulfan catalyst to 2023, but the company is making strong advancements with its current portfolio. Investors need to remember that Medexus is NOT just a Treosulfan stock.

Full Disclosure: Medexus Pharmaceuticals is an Equity.Guru marketing client.