-- Q1 2026 revenue of $12.9 million, up 2% year-over-year; Vascepa net sales
grew 15%, the strongest quarterly growth since Q2 2025
-- Cash from operations of $6.4 million in Q1 2026, up 80% year-over-year;
net debt reduced to $31.9 million, down 32% from Q1 2025
-- NILEMDO$(TM)$ full commercial launch in April
-- 2026 financial guidance reaffirmed: revenue of $56--60 million and
Adjusted EBITDA of $18.5--21 million
TORONTO, May 15, 2026 /CNW/ - HLS Therapeutics Inc. ("HLS" or the "Company") (TSX: HLS), a pharmaceutical company focused on addressing unmet needs in the treatment of psychiatric disorders and cardiovascular disease, announces its financial results for the three months ended March 31, 2026 ("Q1 2026"). All amounts are in thousands of United States ("U.S.") dollars unless otherwise stated.
Q1 F2026 FINANCIAL HIGHLIGHTS (comparisons are to the respective 2025 period)
-- Q1 2026 revenue was $12.9 million, Adjusted EBITDA was $3.5 million and
cash from operations was $6.4 million, compared to $12.6 million, $3.8
million and $3.5 million, respectively.
-- Vascepa net sales increased 15% to $4.8 million in Q1 2026, compared to
$4.2 million.
-- Vascepa unit growth was 18% in Q1 2026, reflecting sustained demand
growth.
-- Canada and U.S. combined net sales of Clozaril were $7.8 million in Q1
2026, compared to $8.2 million.
-- Q1 2026 direct brand contribution for Clozaril was $5.6 million and the
cardiovascular portfolio had a break-even direct brand contribution
inclusive of NILEMDO(TM) launch investment.
-- Made principal repayments on long-term debt totaling $5.1 million in Q1
2026.
Q1 F2026 CORPORATE HIGHLIGHTS
-- Completed preparation for NILEMDO's April commercial launch; subsequent
to quarter-end, Canada Life and Sun Life - representing 40% of privately
insured Canadians - listed NILEMDO with full benefit and no prior
authorization.
-- Clozaril patient volumes in Ontario returned to growth in March and April
2026, an encouraging indicator of business stabilization following the
contracting dynamics experienced in 2025.
"Q1 results were in line with our expectations and consistent with our annual guidance," said Craig Millian, Chief Executive Officer at HLS. "The increase in revenue was driven by Vascepa, which had its strongest quarterly growth since mid-2025 and is a validation of the changes we made to strengthen the cardiovascular sales team last year. As expected, Adjusted EBITDA was lower year-over-year as we made a modest increase in commercial investment to help ensure a successful NILEMDO launch. Cash from operations was up significantly, reflecting the operational improvements we have made and lower interest expense - the result of our new credit agreement and a debt balance that is down more than 30% from a year ago."
"The NILEMDO launch is off to a positive start with weekly sales running ahead of forecast. In addition, Canada Life and Sun Life - two of the largest private payers in Canada -- have added NILEMDO to their plans with no restrictions. These early results reflect the well-established clinical need for this medicine. For the estimated 500,000 Canadians who are not reaching their LDL targets on statins - whether due to intolerance or inadequate response - NILEMDO fills a meaningful treatment gap with an oral, well-tolerated option at a lower cost relative to injectable alternatives. Together, NILEMDO and NEXLIZET$(R)$ represent a franchise we believe can more than double the size of the Company."
2026 OUTLOOK
HLS reaffirms its 2026 financial targets as follows:
-- Consolidated revenue of $56-60 million, representing mid-single-digit
percentage growth.
-- Consolidated Adjusted EBITDA of $18.5-21 million, representing relatively
flat year-over-year performance largely due to NILEMDO launch costs.
-- Of note, future results could be impacted by continued exchange rate
volatility.
Mr. Millian added: "Our Q1 performance gives us confidence that 2026 is unfolding as planned. Launch-related investment is largely front-loaded in the first half of the year, with margins expanding as NILEMDO revenue ramps. Near-term catalysts include expanded private payer coverage by mid-year and anticipated public reimbursement and the launch of NEXLIZET in the first half of 2027. Our investments in 2026 are building the foundation for sustainable growth in 2027 and beyond, and with our balance sheet in the best shape it has been in years, we have the financial flexibility to pursue business development opportunities that can accelerate that growth."
Q1 F2025 FINANCIAL REVIEW
The Company's Management's Discussion and Analysis and Consolidated Financial Statements for the three months ended March 31, 2026, are available at the Company's website and at its profile at SEDAR+.
Revenue
Three months endedMarch 31,
2026 2025
Product sales
Canada 9,965 9,708
United States 2,653 2,718
12,618 12,426
Royalties 246 197
12,864 12,623
Revenue for Q1 2026 increased by 2% compared to Q1 2025. The increase is due to growth in Vascepa net sales, which were $4.8 million, up 15% from Q1 last year, as well as appreciation of the Canadian dollar to the U.S. dollar.
Product sales -- Canada
000's of CAD Three months endedMarch 31,
2026 2025 % change
Clozaril 7,016 7,929 (11.5) %
Vascepa 6,552 5,978 9.6 %
Other 98 32
13,666 13,939 (2.0) %
In local currency, Canadian product sales decreased 2% to C$13.7 million in Q1 2026, with Vascepa net sales growth offset by an expected decline in Clozaril. The Clozaril decrease reflects the residual year-over-year impact from Ontario contracting changes in 2025, which is expected to be concentrated in the first half of 2026. Clozaril patient numbers in Ontario grew sequentially in March and April, signaling stabilization in that business. Vascepa net sales growth reflects the commercial changes made in 2025.
Product Sales -- United States
In the U.S. market, Clozaril revenue for Q1 2026 decreased 2% compared to Q1 2025, in line with expectations. The Company's specialty pharmacy program continues to help offset patient attrition.
Royalty revenues
Royalty revenue for Q1 2026 increased to $0.25 million compared to $0.2 million in Q1 2025. The Company received a final royalty payment related to the Eraxis royalty interest that was liquidated in Q4 2025.
Operating Expenses
Three months endedMarch 31,
2026 2025
Cost of product sales 2,681 2,398
Selling and marketing 2,984 2,830
Medical, regulatory and patient support 1,509 1,436
General and administrative 2,227 2,139
9,401 8,803
Cost of product sales for Q1 2026 increased due primarily to higher Vascepa sales volumes.
Operating expenses for Q1 2026, comprising sales and marketing, G&A, and medical, regulatory, and patient support, increased 5% compared to Q1 2025, reflecting incremental NILEMDO launch investment.
Adjusted EBITDA(1)
Three months endedMarch 31,
2026 2025
Net loss for the period (2,297) (4,436)
Stock-based compensation 142 651
Amortization and depreciation 5,536 5,360
Finance and related costs, net (7) 1,972
Other costs 87 296
Income tax expense (recovery) 2 (23)
Adjusted EBITDA 3,463 3,820
Adjusted EBITDA for Q1 2026 was $3.5 million compared to $3.8 million in Q1 2025, reflecting incremental investment in the NILEMDO launch, partially offset by revenue growth from the base business.
For Q1 2026, the direct brand contribution from Clozaril to Adjusted EBITDA was $5.6 million. The cardiovascular portfolio delivered a break-even direct brand contribution in Q1 2026, even after absorbing pre-launch investment ahead of the April NILEMDO launch. HLS expects the brand contribution from the cardiovascular portfolio to be positive for the year.
Net Loss
Q1 2026 net loss was ($2.3) million, or ($0.07) per share, compared to a net loss of ($4.4) million, or ($0.14) per share, in Q1 2025. The improvement reflects lower finance and related costs and higher revenue, partially offset by incremental NILEMDO launch investment.
Cash from Operations and Financial Position
Cash generated from operations for Q1 2026 was $6.4 million, up 80% compared to $3.5 million in Q1 2025.
HLS continues to strengthen its balance sheet through disciplined capital allocation. During Q1 2026, HLS made debt principal repayments totaling $5.1 million, reducing total borrowings under the credit agreement to $44.2 million at March 31, 2026, a decrease of 31% compared to $64.5 million at March 31, 2025. Net debt decreased to $31.9 million at March 31, 2026, a decrease of 32% compared to $46.8 million at March 31, 2025.
Cash was $12.3 million at March 31, 2026, an increase from $11.7 million at December 31, 2025. This growth reflects an increase in cash from operations and lower interest expense, offset in part by debt principal repayments.
Q1 F2026 CONFERENCE CALL
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