Devonian Health Group Inc. (“Devonian” or the “Corporation”) (TSXv: GSD), a clinical-stage botanical pharmaceutical company specializing in the development of unique botanical pharmaceutical and cosmeceutical products, has announced its financial results for the fiscal year ending July 31, 2024, as of November 28, 2024. The results mark a pivotal year in the company’s growth and progress in its various initiatives.
Management Comments
“This has been a breakout year for Devonian,” said Luc Grégoire, President and Chief Executive Officer of Devonian. “We’ve made significant strides in our scientific activities, particularly with the continued development of Thykamine™ as a multi-target anti-inflammatory platform, including its potential for treating conditions like atopic dermatitis (eczema). Our fourth-quarter performance was notably strong, with a remarkable 749% revenue growth at our subsidiary Altius Health Care Inc., providing substantial financial support for our ongoing operations.”
Business Highlights
The year was highlighted by major milestones, including the successful launch of DEXLANSOPRAZOLE, the only authorized generic in the Canadian market for the treatment of gastroesophageal reflux disease (GERD). This product launch, under the company’s wholly owned subsidiary Altius, has seen significant uptake, driving revenue growth and positioning Altius for further expansion.
In addition to the progress at Altius, Devonian continued advancing its flagship therapeutic candidate Thykamine™. The company made key progress in several pre-clinical studies, investigating the impact of Thykamine™ on various inflammation biomarkers. Additionally, the Corporation made preparations for a phase II/III clinical study of Thykamine™ in the treatment of mild to moderate atopic dermatitis (eczema) in pediatric patients. This included the preparatory work in the batch qualifications of the product for use in upcoming clinical trials.
These efforts underscore Devonian’s commitment to advancing its pipeline of botanical-based therapies, particularly targeting inflammatory conditions such as eczema.
Financial Highlights
Devonian’s financial performance for the fiscal year 2024 was impressive, driven by its revenue growth from Altius and its continuing research and development efforts.
- Fourth-quarter distribution revenue reached $9 million, reflecting a 749% year-over-year increase, driven largely by the successful launch of DEXLANSOPRAZOLE. For the entire fiscal year, distribution revenue totaled $17.82 million, a 660% increase compared to the previous year, signaling the strong commercial performance of the company.
- Net income for the fourth quarter stood at $1.081 million, or $0.007 earnings per share (EPS), a significant improvement from the same period in the previous year when the company posted a loss of $0.863 million or $0.01 loss per share.
- For the full fiscal year, Devonian reported a net loss of $1.225 million, or $0.008 per share, compared to a net loss of $4.600 million, or $0.03 per share for the same period last year. This represents a substantial reduction in the company’s net loss, reflecting the success of its ongoing initiatives.
- As of July 31, 2024, the company had cash reserves of $9.9 million, an increase from $5.1 million at the beginning of the fiscal year. The company’s debt stood at $2.08 million, a reduction from $3.6 million at the start of the fiscal year. This improved financial position provides Devonian with a strong foundation to continue its strategic investments and operations moving forward.
