Medexus Pharmaceuticals (TSX: MDP; OTCQX: MEDXF), a leading specialty pharmaceutical company, has been making waves with record annual revenues, a new credit agreement, and the acquisition of the Canadian rights to commercialize terbinafine hydrochloride nail lacquer. The company’s strong performance is due in part to its focus on hematology, oncology, auto-immune diseases, and allergy therapeutics.

Preliminary revenue estimates for fiscal year 2023 indicate that Medexus is set to deliver total revenue between $107 million and $108 million, a year-over-year increase of at least 39.5%. The company’s fourth fiscal quarter is also expected to yield a revenue of between $28 million and $28.5 million, a year-over-year increase of at least 38.1%.

In a recent interview with Equity Guru founder, Chris Parry, CEO Ken d’Entremont discussed the company’s focus on durable revenues and long-term strategies.

Medexus is still working to get Treosulfan approved, but the challenges with its FDA process has negatively impacted share price. However, management is confident that the drug will get through its paces within 12-18 months from its last submission. How will Treosulfan add to Medexus once it has regulatory approval?

d’Entremont explained, “Most transformational for Medexus is getting Treosulfan approved. Clearly, we’re working towards that. That would be a massive change in the organization. We’re 100 million now in revenue. Treosulfan on its own could be 100 million. So clearly, that’s absolutely transformational.”

The US has been roiling in the wake of big pharma digging the retail customer for their medications, this phenomenon was superbly illustrated by pharma bro, Martin Shkreli, when he jacked the price of Daraprim, an antiparasitic drug commonly used by AIDS patients and others with suppressed immune systems, from a relatively reasonable $13.50 per pill to an astronomical $750 per. Is Medexus destined to go down that road?

d’Entremont had this to say about Medexus’ pricing practices and growth plan, “All of our price increases have been very moderate, kind of in line with inflation. Durable revenues are how we think about it. Let’s do what will allow us to grow and maintain that revenue over time. Pricing practices, they may work for the short term, but it’s certainly not a long-term strategy.”

That said, Medexus’ future is one of significant growth, with d’Entremont clear about wanting to continue forward after Treosulfan’s approval so the company will, “…get much, much bigger.” And the specialty pharma company restructured its finances in order to accomplish that.

In recent news, Medexus entered into a new senior secured credit agreement with BMO, providing a US$35 million term loan facility and a US$3.5 million revolving loan facility for working capital. The new BMO facilities will mature in March 2026.

CFO Marcel Konrad commented on the new credit agreement, “This non-dilutive debt financing demonstrates our access to capital on competitive terms and further acknowledges the strength and stability of our business.”

Speaking of continued growth, Medexus has also secured the Canadian rights to commercialize terbinafine hydrochloride nail lacquer, a product used to treat fungal nail infections. The company will submit the product for Health Canada approval later this year. The Canadian fungicides market is estimated to be worth C$88 million annually, and Medexus aims to leverage its existing commercial infrastructure to bring the product to healthcare professionals and patients across the country.

So, record-breaking revenues, innovative product acquisitions, and strong financial strategies. Medexus’ focus on long-term growth and expansion ensures that it will continue to make an impact in the specialty pharmaceuticals sector. It bears your attention. Check them out.

Medexus currently trades for $1.33 CAD per share for a market cap of $26.78 million.

*Full disclosure: Medexus Pharmaceuticals is an Equity Guru marketing client