Canada's HLS Therapeutics Q4 revenue slightly beats on Vascepa strength

Overview

• Canada pharmaceutical firm's fiscal Q4 revenue declined 2% yr/yr, slightly beating analyst expectations

• Adjusted EBITDA for fiscal 2025 grew 18%, driven by cost optimization and operational discipline

• Company reduced long-term debt by 26% and annual interest expense by 43% in fiscal 2025

Outlook

• HLS Therapeutics targets 2026 revenue of $56-60 mln USD

• Company expects 2026 Adjusted EBITDA of $18.5-21 mln USD, relatively flat due to NILEMDO launch costs

• Company says exchange rate volatility could impact future results

Result Drivers

• VASCEPA GROWTH - Vascepa unit volumes in Canada grew in 2025, supported by sales force changes and expanded provincial access

• CLOZARIL DECLINE - Canadian Clozaril sales fell 4% in 2025 due to regional competitive dynamics; U.S. Clozaril sales declined 1.6%, a slower rate than prior years, attributed to the specialty pharmacy program

• COST OPTIMIZATION - Operating expenses excluding cost of sales fell 17% in 2025, reflecting discontinuation of co-promotional activities and ongoing cost optimization

Company press release: ID:nCNWvynzka

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for HLS Therapeutics Inc is C$8.00, about 87.4% above its March 11 closing price of C$4.27

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