Toronto, Ontario – January 29, 2025 - PharmAla Biotech Holdings Inc. (“PharmAla” or the “Company”) (CSE: MDMA) (OTC: MDXXF), a biotechnology company focused on the research, development, and manufacturing of LaNeo™ MDMA and novel derivatives of MDMA (MDXX class molecules), is pleased to have publicly filed its financial and operational results for the year ended November 30, 2024. All figures are reported in Canadian dollars. The Company’s full set of consolidated audited financial statements for the quarter and accompanying management’s discussion and analysis can be accessed by visiting the Company’s website at www.PharmAla.ca and its profile page on SEDAR+ at www.sedarplus.ca.
“In Q1, PharmAla saw a significant slowdown in our SAP revenue as we transitioned to our new distribution partner, Rane Pharma. However, this was counterbalanced by very strong growth in our Clinical Trial sales pathway, which is reflected in our growth in “Customer Deposits” in our unaudited condensed consolidated interim financial statements, and has largely been previously announced in individual press releases.” said Nick Kadysh, CEO, PharmAla Biotech. “With the re-establishment of our distribution operations for SAP, and shipments to US clinical trials, we look forward to increased movement of inventory in future quarters.”
Financial Highlights:
- During fiscal 2024 the Company realized revenue of over $1.0M representing growth of $503,000 or 95% year over year, lead by growth in MDMA product sales of $723,000, a $305,000 or 73% increase year over year. In fiscal 2024, the Company also increased customer deposits by approximately $19,000, which has continued to grow by $74,000 in Q1. These deposits, generally being 50% of the total contract value, can be recognized along with the remaining revenue when the related product is shipped, which for many customers requires the issuance of their clinical trial and/or import permits from relevant regulatory bodies.
- Newfound efficiencies allowed non-cash costs (total expenses excluding stock based compensation, depreciation and amortization, and loss on debt settlement) to remain relatively consistent quarter over quarter, despite bringing strategic team members on-board.
- During the period the Company received cash proceeds of $42,500 from Directors of the Company for the exercise of options, Further we conducted a debt settlement of accounts payable of $100,000 in exchange for 459,770 shares valued at $132,584. Finally, subsequent to year end, we have closed on a non- brokered private placement resulting in aggregate gross proceeds of approximately $1.5 million. All of which have strengthened our overall cash position for the future.
“The recent cash inflows reflect the confidence of investors and Director group and we look forward to the realization of our sales and customer deposits in the coming periods. While our sales cycles are long, we continue to grow our target markets in a steady and measured way,” said Will Avery, CFO, PharmAla Biotech. “We believe that increased demand driven by the Prescriber’s Portal and fulfilled through our new distribution partner, will allow us to successfully increase shipments to meet urgent patient needs, and combined with the conversion of our customer deposits will continue to drive future growth.”
Investor Webinar
PharmAla will host a Webinar on February 6, 2025, at 4:30 PM Eastern Time (ET). Nicholas Kadysh, CEO, and Will Avery, CFO, will discuss the Company’s financial results, as well as the Company’s plans for the coming year.
What: PharmAla Earnings/Financials Webinar
When: February 6, 4:30PM ET
Sign-up Link:
https://us06web.zoom.us/webinar/register/WN_YVwEWTKGTPKWQolPPelDtg
Registered participants will be able to submit questions for the Management Team via a secure link. All questions must be submitted no later than 12:00 Noon ET on Wednesday, February 5th.
PharmAla Biotech Holdings Inc. (CSE: MDMA) is a biotechnology company focused on the research, development, and manufacturing of MDXX class molecules, including MDMA. PharmAla was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials, and to develop novel drugs in the same class. PharmAla is a “regulatory first” organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators. Our team of dedicated professionals includes regulatory experts, scientists, and biomanufacturing professionals. PharmAla has built what it believes to be North America’s first cGMP MDMA value chain, encompassing GMP manufacturing of Active Pharmaceutical Ingredient (API), and drug product formulation. PharmAla’s research and development unit has also begun preclinical research into two patented Novel Chemical Entities (NCEs) based on MDXX class molecules, with proof-of-concept research currently ongoing at the University of Arkansas Medical School.
Nicholas Kadysh, CEO
press@pharmala.ca