Medexus Pharma (MDP.T) has made a significant mark in the pharmaceutical industry by focusing on bringing approved drugs from Europe and other jurisdictions to North America. Vishal Toora from Equity Guru delved into the company’s strategy, record-breaking quarterly results, and upcoming prospects in a comprehensive video analysis. Here’s a detailed look at what was covered.

A Unique Business Model

Medexus doesn’t develop drugs from scratch. Instead, they look at drugs already performing well in other parts of the world, already approved, and bring them to North America. This approach saves on development costs and has proved to be very profitable for Medexus, as evidenced by their recent announcement of $31.6 million in quarterly revenue, their strongest ever.

Record Breaking Financial Performance

Medexus’s recent financial report shows impressive figures:

• Strongest quarterly revenue in history, with a year-over-year increase of 37%.
• A record in adjusted EBITDA of $6.6 million in Q1 2024, a year-over-year increase of 4.7%.
• Operating profit of $4.8 million and adjusted net income of $600,000, higher than fiscal Q1 2023.
• A solid cash position of $15.8 million.

Growing Portfolio and Market Leadership

With some drugs maintaining their market-leading position and others seeing increased demand due to sales and marketing initiatives, Medexus’s portfolio continues to flourish. Vishal highlighted the strong core business that keeps growing, especially with the revenue figures pointing to a successful trajectory.

Treosulfan and the FDA

A significant part of the analysis was dedicated to the drug treosulfan, which had experienced a crash because of an FDA request for resubmission of the new drug application. Medac, the company handling the resubmission, is aiming to complete the request by the first half of the calendar year 2024.

Hydrochloride Nail Lacquer and Other Upcoming Products

Vishal also talked about a promising product in the pipeline: hydrochloride nail lacquer for treating fungal nail infections, expected to be submitted later in the year. This product is expected to be a significant development considering the existing liver-damaging pills used for similar purposes.

Technical Analysis of Medexus Stock

In a detailed examination of the stock’s chart, Vishal identified significant trendlines, support and resistance levels, and the potential for future growth. He noted the stock’s breakout from its downtrend, suggesting that higher lows and higher highs could signify a new uptrend.

Conclusion: Fundamentals Align with Technicals

Medexus Pharma stands out with strong fundamentals that align with promising technical breakouts. The company’s continued growth, record earnings, and strong portfolio offer a compelling case for its bright future. The detailed analysis by Vishal Toora from Equity Guru serves as a valuable guide for anyone interested in pharmaceutical investments and market trends.