Medexus Pharmaceuticals (MDP.TO), a specialty pharma company, today announced preliminary revenue estimates for Q4 and the full fiscal year ended March 31st 2023 as well as a business update. Medexus expects record revenue for fiscal year 2023.

Annual revenue is expected to exceed US$107 million for the fiscal year ended March 31st 2023, an all time record high. This represents a year over year increase of at least 39%. Fiscal Q4 2023 revenue is expected to be at least US$28 million, representing a year-over-year increase of at least 38.1%.

A reminder to readers: Medexus has been bringing in record amounts of revenue. Q3 2023 revenue was a record quarter for the company with revenue of US$28.7 million, a 35% increase over fiscal Q3 2022.

For fiscal Q4 2023, Medexus expects these product key highlights:

• XINITY: Continuing positive trend in sales, with fiscal Q4 2023 reflecting the best quarter of fiscal year 2023 for new patient conversions on top of a stable, existing base of patients.
• Rasuvo: Continuing strong performance and maintenance of the product’s leading position in the moderately-growing US branded methotrexate market with a highly efficient allocation of sales force resources.
• Rupall: Continuing strong demand growth reflecting successful execution of the company’s sales and marketing initiatives and sustaining the product’s strong performance over the six years since launch.
• Gleolan: Continuing positive trend in US sales, with fiscal Q4 2023 including the best month of fiscal year 2023, reflecting successful execution of the company’s sales and marketing initiatives to date.

A reminder that these are preliminary estimates. The final reported results may diverge from these estimates.

A board update was also released in today’s press release. Peter van der Velden, who has served as chair of the Medexus board of directors since October 2018, has chosen to depart the board. The Medexus board has elected Mike Mueller, a longtime director and chair of the audit committee, to succeed Mr. van der Velden as chair of the board.

“I’d like to thank Peter for his years of service on Medexus’s board,” said Mr Mueller. “Since Peter joined as chair in October 2018, Medexus has completed numerous business development deals, diversified and grown its revenues, and improved its overall financial profile. Most recently, with our newly-announced credit facilities with BMO, we have put in place a solid foundation to support continued growth over the coming years. Peter’s leadership has been an important part of the company’s success to date.”

“Medexus has grown and evolved enormously over the past four-plus years,” said Mr van der Velden. “When Lumira Ventures initially invested in Medexus our goal was to support and enable the company’s vision for becoming a leading North America-based specialty pharma company. Today Medexus is that company. With a strong management team, a diversified North America-based business franchise, and the newly enhanced board of directors this simply feels like the perfect time to step out of the chairperson role. The company is in great hands and I am excited to participate in the next phase of Medexus’s journey and success in my continuing role as a shareholder.”

The stock is down -1.89% at time of writing, and sits at a market cap just above CAD $31 million.

We are seeing a reaction as a major resistance zone which I provided to readers in my most recent article covering Medexus securing Canadian rights for fungal nail medication. At that time, the stock was trading near its support at the $1.25 zone. Our resistance target came in at the $1.70 zone.

A great technical play for readers who acted on that support level. Resistance is seen as an area for taking profits in a trade, and for sellers to enter. However, when a new trend reversal is in play, resistance breakouts lead to bullish upside momentum.

Note the downtrend line I have drawn, and how it also coincides with our $1.70 resistance zone. If the bulls can push Medexus stock above the $1.70 zone and confirm a close over it, we would trigger a breakout of resistance and this downtrend line. Very bullish signs. The slope of the trendline currently points downward, and hence why Medexus could still see some downside pressure until we can close above it.

A major fundamental catalyst can give us these breakouts and trend reversals. And we have one coming with potentially record breaking fiscal year 2023 earnings.