Medexus Pharmaceuticals (MDP.TO) today announced that it has reached an agreement with the provincial government of Quebec for government sponsored coverage of Cuvposa. The glycopyrrolate oral solution will be listed for public reimbursement on the Public Prescription Drug Insurance Plan of the Régime de l’Assurance Maladie du Québec (RAMQ) starting February 1st 2023.
Cuvposa is used to reduce chronic severe drooling in patients 3 to 18 years of age with neurologic conditions associated with problem drooling, such as cerebral palsy. Chronic severe drooling may also be diagnosed in patients with other neurological disorders, such as severe developmental delay, autism spectrum disorders, sensory impairments, traumatic brain injuries, or neurogenetic and metabolic disorders.
Glycopyrrolate indirectly reduces the rate of salivation by preventing the stimulation of acetylcholine muscarinic receptors located on peripheral tissues such as salivary glands.
The rate of cerebral palsy incidence in Canada is estimated at around 0.3 per 1,000 for children less than 20 years old, with newly diagnosed cases expected to increase to nearly 2,200 in 2031 and the number of people living with cerebral palsy increasing to more than 94,000.
Listing Cuvposa in Canada fills a health need recognized as being moderate to high in vulnerable and underserved pediatric populations in Canada who are affected by this condition.
Dr Pierre Marois, Pediatric Physiatrist at Montreal’s Ste-Justine Hospital, commented: “Chronic severe drooling, or sialorrhea, is an often-underestimated condition in pediatric patients who are also managing significant neurologic conditions. It can result in dysphagia and impact respiratory health – but can also affect the social and emotional development of these children and the wellbeing of their caregivers and families, contributing to the substantial burden of the underlying conditions.”
“The limited number of available treatment options means that chronic severe drooling is often poorly managed,” added Jean-Claude Beaudoin, Vice President—Sales & Marketing at Medexus. “We are therefore proud to make Cuvposa available to more patients in Quebec through this new partnership with the Quebec government. We believe greater access to Cuvposa will help more people seeking to manage the ancillary effects of neurologic conditions, which can have a significant impact on their wellbeing.”
Cuvposa is approved by Health Canada for sale and use in Canada only and is not intended for export outside Canada.
This news comes on the wings of Medexus announcing an expected record breaking quarter for revenue for fiscal Q3 2023. Medexus’ preliminary estimates put revenue between US $28.5-$29 million for fiscal Q3 2023. Markets will find out when Medexus releases earnings after the markets close on February 8th 2023.
At time of writing, Medexus is up over 2.70%.
The stock has been ranging at a major support level for most of 2023. $1.80 is support, and there is a wall of buyers defending this zone and entering. You can see from the chart that this zone has now been held three times since November 2022.
I want to point out that the major pop taking the stock to $2.50 was due to earnings. Can we expect a similar pop this time? It is hard to say how a stock will react post earnings, but all the technicals support an upwards move. We are holding major support. The stock is ranging. And, there is a triangle pattern (or wedge) developing as I have outlined with my trendline above.