In a recent video analysis, Chris Parry from Equity Guru brought to light some intriguing aspects of Medexus Pharmaceuticals (MDP.T), a player in the North American pharmaceutical industry known for bringing novel cures for orphan diseases to the market. Here’s a breakdown of Parry’s insights, which might just change the way investors view this undervalued company.

Medexus’ Business Model and Performance

The company focuses on acquiring unlicensed medications from other parts of the world and introducing them to the North American market. This approach seems to be paying off, with Parry noting the company’s strong sales network and increasing sales, alongside decreasing expenses.

Financial Health: A Closer Look

Medexus has been managing its debt effectively and shows a pattern of de-risking. Notably, it reported a $1 million net loss in the last quarter, which is smaller compared to previous quarters, indicating a trend of decreasing losses. The company’s quarterly revenue stands impressive at $30.3 million US, roughly translating to $150 million Canadian annually.

Market Cap vs. Revenue: A Mismatch

Despite these positive indicators, Medexus’s market capitalization, at $48 million Canadian, trades at just one-third of its annual revenue. A surprising undervaluation, especially given the company’s solid management and financial prudence.

Conclusion

Medexus Pharmaceuticals paints the picture of a potentially undervalued stock in the Canadian pharmaceutical sector. With strong fundamentals, decreasing losses, and a solid revenue stream, Medexus appears to be a company worth a closer look by investors seeking opportunities in this space.