Medexus Pharmaceuticals Q1 Earnings Call Highlights

Medexus Pharmaceuticals Q1 Earnings Call Highlights Written by MarketBeat August 11, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points Medexus reported solid fiscal Q1 2027 results: Revenue rose to $28.6 million from $24.6 million, while adjusted EBITDA increased to $4.7 million from $3.4 million. Growth was driven mainly by GRAFAPEX and IXINITY. GRAFAPEX adoption continued to accelerate. Quarterly product revenue reached a record $4.9 million, with 75 healthcare institutions ordering the product and 54 placing repeat orders. Management maintained its fiscal 2027 revenue target of $30 million–$32 million. Medexus maintained its full-year outlook and expects meaningful operating cash flow as GRAFAPEX scales, despite net debt rising to $20.9 million at quarter-end. The company is also pursuing Canadian commercialization of UM171 to expand its stem-cell-transplantation strategy. Five stocks to consider instead of Medexus Pharmaceuticals . Medexus Pharmaceuticals TSE: MDP reported higher first-quarter fiscal 2027 revenue and adjusted EBITDA, supported by continued growth for GRAFAPEX and a stronger contribution from IXINITY, while management maintained its full-year outlook for the recently launched transplant-conditioning product. For the three months ended June 30, total net revenue rose to $28.6 million from $24.6 million a year earlier. Adjusted EBITDA increased to $4.7 million from $3.4 million, while operating income improved to $2.1 million from $0.9 million. Net income was unchanged year over year at $0.5 million. Get MDP alerts: Sign Up GRAFAPEX Revenue and Adoption Continue to Build GRAFAPEX generated $4.9 million in product-level net revenue during the quarter, its strongest quarterly performance to date, Chief Executive Officer Ken d'Entremont said. The company said GRAFAPEX revenue exceeded the $3.2 million it invested in product-level personnel and infrastructure during the same period, making the product accretive to quarterly operating cash flows before working-capital changes. Chief Financial Officer Brendon Buschman said underlying patient demand for GRAFAPEX totaled $4.8 million, up 23% from $3.9 million in the fourth quarter of fiscal 2026 and 118% from $2.2 million in the prior-year first quarter. Medexus reiterated its expectation for GRAFAPEX to generate $30 million to $32 million in product-level net revenue for fiscal 2027. Management also maintained its expectation that the product can reach annual net revenue of approximately $100 million to $175 million within five years of commercial launch. As of June 30, wholesaler data showed that 75 healthcare institutions had ordered GRAFAPEX for use in their procedures, including 54 institutions that had placed repeat orders. D'Entremont said most revenue was coming from repeat orders as hospitals broaden adoption following their initial experience with the product. The company said growth is increasingly being driven by adult patients, who represent about 85% of the market. Initial uptake had been strong in pediatrics, including some off-label use, but management said most of the current adult utilization is on-label, particularly in acute myeloid leukemia and myelodysplastic syndromes. D'Entremont said pricing has been strong, with the company receiving its intended price broadly and doing little discounting. He added that the key indicator for the longer-term revenue target is whether hospitals adopt GRAFAPEX as a standard of care. The company has previously described its five-year sales range as representing 29% to 42% market share, and management said some hospitals have already reached that level of adoption. Management acknowledged that the summer period has historically been a more challenging period for demand. However, d'Entremont said July was the company’s second-best month for GRAFAPEX, compared with a notably soft July in the prior year, while June was its strongest month to date. Portfolio Performance and Margins The $4 million year-over-year increase in total revenue was driven primarily by higher GRAFAPEX and IXINITY sales, Buschman said. Gross profit increased to $15.9 million from $13.8 million, while reported gross margin was 55.6%, compared with 56.0% a year earlier. Adjusted gross margin was 63.8%, down from 65.5%. The year-earlier period included a one-time positive contribution from royalty revenue related to Gleolan, which Medexus returned to its licensor in March 2025. The company received royalty revenue through June 30, 2025, creating a difficult comparison, Buschman said. Excluding that prior-year item, gross margin and adjusted gross margin would have increased in the latest quarter, according to the company. Selling, general and administrative expenses rose to $13 million from $12.2 million. Buschman said the adjusted EBITDA increase reflected GRAFAPEX revenue exceeding its product investment, along with higher IXINITY revenue,