-- Cardiovascular portfolio net sales grew 25% year-over-year, driving Q2
consolidated revenue growth of 3.5%
-- NILEMDO$(TM)$ reimbursement secured with the largest private payers in
Canada, plus a unanimous positive CDA-AMC recommendation supporting
public reimbursement
-- Cash from operations of $9.3 million year-to-date, up 14% year-over-year;
net debt reduced to $28.5 million, down 26% from December 31, 2025
TORONTO, Aug. 12, 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 and six months ended June 30, 2026. All amounts are in thousands of United States ("U.S.") dollars unless otherwise stated.
Q2 & YTD F2026 FINANCIAL HIGHLIGHTS (comparisons are to the respective 2025 period)
-- Q2 2026 revenue was $14.7 million, Adjusted EBITDA was $4.7 million and
cash from operations was $2.9 million, compared to $14.2 million, $5.2
million and $4.6 million, respectively.
-- Year-to-date 2026 revenue was $27.5 million, Adjusted EBITDA was $8.1
million and cash from operations was $9.3 million, compared to $26.8
million, $9.0 million and $8.1 million, respectively.
-- Vascepa net sales increased 18% in Q2 2026, the second consecutive
quarter of double-digit growth.
-- NILEMDO(TM) net sales exceeded $300 thousand in its first full quarter on
the market.
-- Q2 2026 Canadian Clozaril net sales narrowed to a 1% decline over prior
year, supported by five consecutive months of growth in the patient base.
-- Q2 2026 direct brand contribution from Clozaril to Adjusted EBITDA was
$6.7 million ($12.4 million year-to-date), and the direct brand
contribution from the cardiovascular portfolio, including incremental
NILEMDO launch investment, was essentially breakeven in both the Q2 and
year-to-date periods.
CORPORATE HIGHLIGHTS
-- NILEMDO full commercial launch took place in April.
-- Reimbursement now secured with the largest private payers in Canada,
representing approximately 80% of privately insured Canadians.
-- Unanimous recommendation from Canada's Drug Agency (CDA-AMC) for
reimbursement of NILEMDO by participating public drug plans.
-- Launched a normal course issuer bid ("NCIB") in June 2026 for up to
1,500,000 common shares; through July 31, 2026, the Company has
repurchased 339,880 shares, returning C$1.4 million to shareholders.
-- Submitted responses to Health Canada's outstanding queries for
NEXLIZET$(R)$ in Q2 2026 and remain on track for an end of year decision
and launch in the first half of 2027.
"Our cardiovascular growth engine accelerated in the second quarter," said Craig Millian, Chief Executive Officer at HLS. "Our CV portfolio delivered 25% net sales growth, with Vascepa double-digit growth and NILEMDO ahead of plan in its first full quarter on the market. We also reached a significant milestone for NILEMDO, securing reimbursement with the largest private payers in Canada and a unanimous positive recommendation for reimbursement from Canada's Drug Agency, both important steps toward broad patient access. In Canada, our Clozaril patient base has now grown for five consecutive months, a positive sign that the business is stabilizing. With the strongest balance sheet in recent years and solid cash generation, we are investing in growing the Company while also returning capital to shareholders through our buyback."
"NILEMDO and NEXLIZET represent a significant growth opportunity for HLS, " added Mr. Millian. "With an estimated half a million eligible Canadians, and with expanding private payer coverage and a positive public reimbursement recommendation in hand, we are well positioned to build on our early momentum. We plan to begin pCPA negotiations later this year, which we expect will support initial provincial listings in the first half of 2027. We expect the NEXLIZET launch to follow as an important addition to the armamentarium for physicians already writing NILEMDO. Along with the disciplined pursuit of business development opportunities, this gives HLS multiple paths to growth over the coming years."
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 reflecting NILEMDO launch costs.
-- Of note, future results could be impacted by continued exchange rate
volatility.
Mr. Millian added: "Our results through the first half of the year keep us on track against our 2026 guidance. We expect margins to expand as NILEMDO revenue continues to ramp through the back half of the year establishing momentum heading into 2027."
Q2 F2026 FINANCIAL REVIEW
The Company's Management's Discussion and Analysis and Consolidated Financial Statements for the three and six months ended June 30, 2026, are available at the Company's website and at its profile at SEDAR+.
Revenue
Three months endedJune 30, Six months endedJune 30,
2026 2025 2026 2025
Product sales
Canada 11,502 10,521 21,467 20,229
United States 2,966 3,502 5,619 6,220
14,468 14,023 27,086 26,449
Royalty revenue 205 148 451 345
14,673 14,171 27,537 26,794
Revenue for Q2 2026 increased 3.5% compared to Q2 2025, and increased 2.8% year-to-date compared to the same period of 2025. Both increases were driven by growth in Vascepa net sales as well as approximately $0.3 million in revenue from NILEMDO in its first full quarter on the market.
Product sales -- Canada
000's of CAD Three months endedJune 30, Six months endedJune 30,
2026 2025 % change 2026 2025 % change
Clozaril 8,505 8,589 (1.0) % 15,521 16,518 (6.0) %
Vascepa 6,940 5,884 17.9 % 13,492 11,862 13.7 %
NILEMDO 427 -- 456 --
Other 58 76 127 108
15,930 14,549 9.5 % 29,596 28,488 3.9 %
In local currency, Canadian product sales increased 9.5% in Q2 2026 and 3.9% year-to-date, reflecting strong Vascepa growth and the initial contribution from NILEMDO, partially offset by a modest decline in Clozaril. Vascepa's double-digit net sales growth in both Q2 and the year-to-date period reflects the changes made to the cardiovascular sales team in 2025. NILEMDO, in its first full quarter on the market, generated net sales slightly ahead of forecast, which is particularly encouraging given that meaningful private payer coverage only began taking effect late in the quarter. At the same time, Clozaril net sales in Canada were down just 1% in Q2 2026 compared to Q2 last year, a narrowing decline that reflects a patient base that has grown sequentially for five consecutive months, an encouraging early indicator for the balance of the year.
Product Sales -- United States
In the U.S. market, Clozaril revenue in Q2 2026 and year-to-date declined compared to the same periods last year. The decrease was due in part to a slight decline in demand and also reflected a challenging Q2 year-over-year comparison, as the timing of the July 4 holiday in 2025 pulled some ordering into Q2 last year. The Company's specialty pharmacy program continues to help offset patient attrition, and this remains a high-margin, cash-generating business.
Royalty revenues
Royalty revenue for Q2 2026 was $0.2 million compared to $0.1 million in Q2 2025, and year-to-date was $0.5 million compared to $0.3 million in the same period last year.
Operating Expenses
Three months endedJune 30, Six months endedJune 30,
2026 2025 2026 2025
Cost of product
sales 2,853 2,505 5,534 4,903
Selling and
marketing 3,257 3,046 6,241 5,876
Medical, regulatory
and patient support 1,704 1,366 3,213 2,802
General and
administrative 2,196 2,084 4,423 4,223
10,010 9,001 19,411 17,804
Cost of product sales increased in Q2 2026 and year-to-date, due primarily to demand growth in Vascepa and initial sales of NILEMDO.
Operating expenses, comprising sales and marketing, medical, regulatory and patient support, and G&A, were $7.2 million in Q2 2026, up 10% compared to Q2 last year, and up 8% year-to-date, reflecting the Company's investment in the NILEMDO launch.
Adjusted EBITDA
Three months endedJune 30, Six months endedJune 30,
2026 2025 2026 2025
Net loss for the
period (1,020) (2,741) (3,317) (7,177)
Stock-based
compensation 293 465 435 1,116
Amortization and
depreciation 5,526 5,483 11,062 10,843
Finance and related
costs, net (222) 1,690 (229) 3,662
Other costs 73 31 160 327
Income tax expense 13 242 15 219
Adjusted EBITDA 4,663 5,170 8,126 8,990
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