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HLS Therapeutics Inc (TSE:HLS)
TSX:HLS
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HLS Therapeutics Inc
(TSX:HLS)
52Neutral
Positive Factors
Cash Flow
HLS is now in a firmly free cash flow positive position.
Earnings Performance
Adjusted EBITDA of $5.6M grew 4% and beat the consensus of $5.1M.
Insurance Coverage
Vascepa has now achieved insurance coverage for over 90% of Canadians eligible for public plans and over 95% for private plans.
Negative Factors
Gross Profit Margin
Gross profit margin in Q4 contracted to 83% as royalty revenue declined significantly.
Revenue Decline
Revenue declined 2% to $15.5M, coming in just below the Street's estimate of $15.7M.
Revenue Guidance
The company has lowered its 2024 revenue guidance.
HLS Therapeutics Inc (HLS) vs. S&P 500 (SPY)
Market Cap
C$131.94M
Dividend YieldN/A
Average Volume (3M)7.99K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-8.80%
EPS Growth26.77%
CountryCA
Employees92
SectorHealthcare
Sector Strength74
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.84
Shares Outstanding31,793,047
10 Day Avg. Volume8,101
30 Day Avg. Volume7,987
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.83
Price to Cash Flow (P/CF)8.10
P/FCF Ratio2.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.92Price Target Upside44.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
HLS Therapeutics Inc Business Overview & Revenue Model
Company DescriptionHLS Therapeutics Inc (HLS) is a specialty pharmaceutical company focused on the acquisition and commercialization of late-stage development, commercial-stage promoted, and legacy pharmaceutical products for the North American market. The company operates within the pharmaceutical industry, emphasizing central nervous system, cardiovascular, and other therapeutic areas. HLS leverages its expertise in product management and market access to bring innovative treatments to patients and healthcare providers.
How the Company Makes MoneyHLS Therapeutics Inc generates revenue primarily through the commercialization and sales of pharmaceutical products within North America. The company's revenue streams are largely derived from the sales of its core products, including both proprietary and licensed pharmaceuticals. HLS focuses on acquiring rights to promising pharmaceutical products and optimizing their market potential through strategic marketing, distribution, and sales initiatives. Key factors contributing to its earnings include the successful integration of acquired products, partnerships with healthcare providers and institutions, and the ability to navigate regulatory pathways to bring products to market efficiently. Collaborations with other pharmaceutical companies and research institutions can also play a crucial role in enhancing its product portfolio and driving revenue growth.
HLS Therapeutics Inc Financial Statement Overview
Summary
HLS Therapeutics Inc shows strong operational efficiency with a high gross profit margin and improving EBITDA margins. However, persistent net losses result in negative net profit margins and ROE. The balance sheet reflects moderate leverage with a stable equity ratio. Cash flow remains positive despite net losses, highlighting effective cash management. The company needs to address profitability issues to enhance financial stability.Income Statement
The company has shown a decline in revenue from 2023 to 2024, with a revenue growth rate of -10.24%. The gross profit margin remains strong at approximately 84.1% in 2024, though it has slightly decreased from previous years. Net profit margin remains negative due to persistent net losses, indicating profitability issues. EBITDA margin improved to 30.41% in 2024 from 20.42% in 2023, demonstrating better operational efficiency.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is approximately 0.93, indicating a moderate level of leverage. Return on equity is negative, reflecting ongoing net losses. The equity ratio stands at 44.6%, which suggests a balanced approach to financing between debt and equity. Overall, the balance sheet shows a stable but leveraged financial position.50
Neutral
Cash Flow
The operating cash flow to net income ratio is negative due to net losses, but the company has managed positive free cash flow of $7.99 million in 2024. Free cash flow to net income ratio is also negative. Despite net losses, the company maintains positive cash generation from operations, indicating efficient cash management.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 56.62M | 63.07M | 61.47M | 60.01M | 56.11M | Gross Profit |
| 47.62M | 55.45M | 56.49M | 56.04M | 52.48M | EBIT |
| 0.00 | -10.35M | -13.44M | -6.24M | -11.26M | EBITDA |
| 17.22M | 12.88M | 18.00M | 25.41M | 23.19M | Net Income Common Stockholders |
| -19.66M | -27.53M | -23.60M | -13.12M | -15.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 17.46M | 21.95M | 20.72M | 21.18M | 20.61M | Total Assets |
| 159.90M | 209.06M | 241.65M | 275.90M | 303.91M | Total Debt |
| 66.45M | 87.62M | 97.34M | 97.57M | 107.12M | Net Debt |
| 48.99M | 65.67M | 76.62M | 76.39M | 86.51M | Total Liabilities |
| 88.56M | 111.36M | 116.33M | 115.17M | 134.66M | Stockholders Equity |
| 71.34M | 97.70M | 125.32M | 160.74M | 169.25M |
| Cash Flow | Free Cash Flow | |||
| 7.99M | 15.60M | 6.79M | 11.92M | -35.33M | Operating Cash Flow |
| 8.00M | 15.79M | 16.94M | 16.43M | 9.34M | Investing Cash Flow |
| 11.73M | -189.00K | -10.15M | -4.51M | -44.68M | Financing Cash Flow |
| -23.36M | -14.64M | -6.86M | -11.40M | 9.56M |
HLS Therapeutics Inc Technical Analysis
Negative
4.11
Price Trends
4.24
Negative
3.96
Positive
3.69
Positive
Market Momentum
0.15
Negative
67.28
Neutral
64.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLS, the sentiment is Negative. The current price of 4.11 is below the 20-day moving average (MA) of 4.37, below the 50-day MA of 4.24, and above the 200-day MA of 3.69, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 67.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HLS.
HLS Therapeutics Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Performance Comparison
TSE:HLS
HLS Therapeutics Inc
4.11
-0.90
-17.96%
TSE:GUD
Knight Therapeutics
5.67
-0.20
-3.41%
TSE:NEO
Neo Performance Materials Inc
8.37
2.54
43.57%
HLS Therapeutics Inc Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 2.49% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in Vascepa sales and a significant reduction in operating expenses and debt, positioning the company for a stronger financial future. However, challenges such as the decline in U.S. Clozaril sales and lowered revenue guidance tempered the overall outlook.Highlights
Strong Vascepa Sales Growth
Vascepa's net sales increased 28% year-over-year, 30% in constant currency, and were up 13% over the second quarter, with unit demand growing 45% in Q3. Prescriber growth was consistent at 66%.
Reduction in Operating Expenses
Operating expenses were reduced by 15% in Q3 compared to the prior year, with a significant debt repayment strengthening the company's balance sheet.
Positive Leadership Announcements
John Hanna was appointed as the permanent Chief Financial Officer and Brian Walsh was promoted to Chief Commercial Officer, contributing to significant changes in operating performance.
Canadian Market Success
Net sales in Canada grew 9% in Q3 over the prior year, with Vascepa contributing significantly to this growth.
Debt Reduction Achievements
Debt was reduced by more than $18 million, putting the company in a much stronger financial position entering 2025.
Promising Future Sales Model
Transition of primary care sales activities in-house from Pfizer is expected to save approximately $4 million annually, maintaining a high level of coverage with existing prescribers.
Lowlights
Decline in U.S. Clozaril Sales
U.S. Clozaril product sales were down 15% in Q3 and 8% for the year-to-date period, attributed to wholesaler purchasing patterns and high inventory levels.
Lowered Revenue Guidance
Full-year revenue guidance was lowered to $56.5 million to $57.2 million from the previous range of $58.5 million to $59.7 million, due to U.S. Clozaril sales being behind plan and negative foreign exchange impacts.
Reduced Cash from Operations
Cash from operations in Q3 was $1.5 million compared to $5.4 million in Q3 last year, indicating a decrease in operational cash flow.
Company Guidance
During the Q3 2024 earnings call for HLS Therapeutics, the company provided guidance reflecting both achievements and future expectations. HLS reported third-quarter revenue of $14.1 million, with adjusted EBITDA of $4.1 million and cash from operations at $1.5 million. A significant highlight was the robust performance of Vascepa in Canada, with net sales increasing by 28% year-over-year, or 30% in constant currency. The company also reduced Q3 operating expenses by 15% compared to the previous year, excluding the cost of goods, and made a substantial debt repayment, lowering net debt to $52.4 million. Full-year guidance for 2024 was adjusted, with revenue now anticipated to be between $56.5 million and $57.2 million, and the adjusted EBITDA range raised to $16 million to $16.7 million. Looking ahead to 2025, HLS expects revenue growth in the high single-digit percentage range and consolidated adjusted EBITDA growth in the mid-20s percentage range.HLS Therapeutics Inc Corporate Events
Executive/Board Changes
HLS Therapeutics Appoints Christine Elliott to Board of Directors
Positive
Mar 13, 2025
HLS Therapeutics Inc. has announced the appointment of Christine Elliott to its Board of Directors. With her extensive experience as Ontario’s Deputy Premier and Minister of Health, Elliott brings valuable insights into the Canadian healthcare landscape, particularly in regulatory and reimbursement frameworks. Her appointment is expected to aid HLS in expanding access to therapies and introducing new medicines, thereby benefiting patients and healthcare providers across Canada.
Financial Disclosures
HLS Therapeutics to Announce Fiscal 2024 Financial Results
Neutral
Feb 27, 2025
HLS Therapeutics Inc. announced it will release its Q4 and fiscal 2024 financial results on March 13, 2025, followed by a conference call hosted by its executive team. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning within the pharmaceutical industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.