Medipharm Labs Q1 Earnings Showed Execution Across The Board

Earlier this week, MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) released first-quarter financial results that highlight how the business is working to establish itself as an international pharmaceutical company that specializes in cannabis.

During the last quarter, the global cannabis extraction leader has been under considerable pressure and this is a trend that has surprised us. So far this year, MediPharm has reported a series of positive developments and we are favorable on the direction the management team is bringing the business.

We believe that MediPharm has been executing on a targeted growth strategy that is focused on establishing its presence as a pharmaceutical company while ramping up international sales. We are bullish on these verticals and believe the market is discounting the potential growth that is associated with them. 

Reported a Series of Major Milestones in the First Quarter

One of the major milestones that was reported in the first quarter was the commencement of sales of GMP-certified medical cannabis products in Germany under its long-term partnership agreement with STADA Arzneimittel AG. During the quarter, MediPharm also completed its first medical cannabis exports to Peru and we will monitor how this aspect of the story advances in future quarters.

Another important development that was reported in the first quarter, is related to how the management team has executed on a cost-cutting strategy which led to a 30% decrease in expenses. By focusing on cutting costs and ramping up the international and pharmaceutical side of the business, the management team is highly focused on making the business profitable again and we are favorable on this.

We believe that MediPharm’s international and domestic sales agreements are creating tangible momentum for future quarters and are bullish on the long-term outlook of the business. In the current quarter, we expect the company to launch additional medical cannabis products and are favorable on the potential revenue that could be generated through it.

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Disclaimer: All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Furthermore, ...

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