The following is a transcript from the AMA event held on September 16th at 1pm EST
CEO.CA would like to welcome the Medexus Pharmaceuticals Management Team to today’s Ask Me Anything session!
We would like to remind everyone that this discussion will include “forward looking information” as defined in Canadian securities laws. Actual results may differ materially from historical results, or results anticipated by the forward-looking information. In addition, this discussion will also include “non-GAAP measures” as defined in Canadian securities laws, which do not have any standardized meaning under IFRS, and therefore may not be comparable to similar measures presented by other companies. For more information about forward looking information and non-GAAP measures, including reconciliations, please refer to the Company’s MD&A, which, along with the financial statements, is available on the Company’s website at www.medexus.com, and on SEDAR+ at www.sedarplus.ca. As a reminder, Medexus reports on a March 31 fiscal year basis. Medexus reports financial results in US dollars, and all references are to US dollars unless otherwise specified.
Q1: As you look at the portfolio today, what do you see as the primary drivers of growth over the next several years, and where does GRAFAPEX fit within that mix?
GRAFAPEX is the key driver of our growth over the next several years. We completed the commercial launch of GRAFAPEX in February 2025 and, in our most recent Quarter, Fiscal Q1 2027, generated $4.9 million of product-level net revenue (which is described in our MD&A) from GRAFAPEX. We expect product-level net revenue to continue to grow resulting in annual product-level net revenue from GRAFAPEX of approximately $100 million to $175 million within five years after commercial launch. At the same time, we remain focused on maximizing the value and cash generation of our established portfolio while building a broader innovative and rare disease treatment solutions platform.
Q2: What milestones should we be watching for that support the growth outlook for GRAFAPEX?
The key milestones to watch are how many transplant centers have ordered GRAFAPEX, the level of repeat ordering, and ultimately how utilization develops within those centers.
As of June 30, 2026, 75 institutions, representing approximately 42% of the total 180 transplant centers in the US, had ordered GRAFAPEX.
We are also encouraged by the level of repeat usage. Of the 75 institutions that have ordered GRAFAPEX, 54 have placed repeat orders. Underlying patient demand in the quarter ending June 30, 2026, increased 23% quarter-over quarter and 118% year-over-year.
Going forward, investors should watch for continued growth in the number of transplant centers ordering GRAFAPEX, increasing repeat-order rates and deeper utilization within existing accounts.
Q3: As GRAFAPEX scales, does the company’s revenue and earnings mix begin to shift meaningfully toward that asset, and how should we think about the contribution from the rest of the portfolio over time?
Yes, we would expect the revenue and earnings mix to shift meaningfully toward GRAFAPEX as the product scales.
We expect GRAFAPEX to generate annual product-level Adjusted Gross Margin (which is described in our MD&A) of approximately 80%. So, as GRAFAPEX becomes a larger portion of total revenue, we would expect it to have an increasingly meaningful impact on both our overall gross margin and earnings profile.
Q4: How do you balance investment in GRAFAPEX, new product opportunities, debt reduction and share repurchases?
We are always evaluating capital allocation across a range of opportunities. Our first priority is ensuring that the existing business, and particularly the GRAFAPEX opportunity, has the resources needed to execute effectively.
Beyond that, we compare new product opportunities, debt reduction and share repurchases based on what we believe offers the best risk-adjusted return for the company.
Q5: You’ve indicated you intend to increase your focus on the Allo-HSCT, market. How central is Allo-HSCT to the company’s strategic direction going forward?
Allo-HSCT is an increasingly important strategic focus for us. With GRAFAPEX in the U.S., Trecondyv in Canada, and the addition to our product pipeline of the Canadian rights to UM171 Cell Therapy, we are building on our existing transplant expertise, relationships and commercial infrastructure, while seeking to create synergies across products that serve the same centers, clinicians, and patients.
Q6: Could you describe what an ideal BD asset would look like for Medexus today, and how closely would it need to fit with the company’s existing Allo-HSCT capabilities and customer base?
There are lots of opportunities across the Allo-HSCT landscape to improve outcomes throughout the patient journey, so an ideal BD asset would be one that complements our existing capabilities, leverages our relationships with transplant centers and clinicians, and strengthens our presence across the broader transplant ecosystem. We would also evaluate the quality of the clinical and regulatory profile, the funds required, and the opportunity to create long-term value for the company.
Q7: If we look three to five years ahead, what is the right way to think about Medexus?
Three to five years from now, we believe Medexus should be a more scaled-up, more focused and more profitable innovative and rare disease pharmaceutical company, with GRAFAPEX as a meaningful growth and earnings driver and a portfolio increasingly focused in areas where we can leverage our existing expertise, customer relationships and commercial infrastructure. Our objective is to use the foundation we have built in Allo-HSCT and adjacent areas to create a business with stronger growth, higher-quality earnings and greater long-term value for the company.
CEO.CA would like to give a big thanks to the Medexus Pharmaceuticals team for joining us today!
