Adjusted EBITDA grew 19% in Q3 and 25% year-to-date Cash from operations grew 67% in Q3 and 121% year-to-date Announced new credit facility with lower rates, increased flexibility and reduced F/X risk Bempedoic acid approval expected in Q4 2025; preparations underway for Q2 2026 launch
TORONTO, Nov. 13, 2025 /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 nine months ended September 30, 2025 ("Q3 2025" and "year-to-date"). All amounts are in thousands of United States ("U.S.") dollars unless otherwise stated.
Q3 & YEAR-TO-DATE 2025 FINANCIAL HIGHLIGHTS (comparisons are to the respective 2024 periods)
Q3 2025 revenue was $13.5 million, Adjusted EBITDA1 was $4.9 million and cash from operations was $2.5 million, compared to $14.1 million, $4.1 million and $1.5 million, respectively. Year-to-date 2025 revenue was $40.3 million, Adjusted EBITDA was $13.9 million and cash from operations was $10.6 million, compared to $41.1 million, $11.1 million and $4.8 million, respectively. In local currency, combined Canadian product sales for Vascepa and Clozaril were down 4% in Q3 2025 and up 2% year-to-date. For the year-to-date period, unfavorable foreign exchange negatively impacted revenue by approximately $0.8 million in fiscal 2025. U.S. sales of Clozaril in Q3 2025 were flat year-over-year and were up 1% year-to-date. Excluding cost of sales, operating expenses decreased 22% in Q3 2025 and 20% year-to-date. Vascepa contributed $0.6 million to Adjusted EBITDA in Q3 2025, its most profitable quarter to date.
Q3 2025 CORPORATE HIGHLIGHTS
Secured new credit agreement with improved terms, reducing annual interest expense by approximately $1.5 million. Made principal repayments on the Company's long-term debt totalling $2.5 million ($13.9 million year-to-date). Repurchased $0.8 million of common stock in Q3 2025. The Company has purchased 517,776 common shares at a cost of $1.8 million since launching its buyback on March 17, 2025.
"We are pleased with the solid growth in profitability and cash flow we delivered in Q3 and throughout 2025," said Craig Millian, CEO at HLS. "Adjusted EBITDA increased 19% in Q3 and 25% year-to-date, and builds on the consistent improvement achieved over the past two years. Our U.S. Clozaril business has outperformed expectations, but, in addition to FX impacts, our Canadian business has faced headwinds in 2025 that have impacted sales performance."
"Vascepa prescriptions have grown 24% year-to-date, and the product achieved its highest level of profitability this quarter. Overall, prescription growth fell short of our targets, due in part to the sales force transition in the first half. This transition was necessary to strengthen our capabilities and prepare for the bempedoic acid launch, and the team is now fully deployed. Clozaril continues to generate strong profit and cash flow and has successfully maintained its leadership for over 20 years in a generic market. Importantly, while patient numbers are down 1% versus prior year, they are still up 1% since year-end 2023. Although patient numbers have remained relatively stable, inventory fluctuations and regional competitive pressures can impact financial results year-to-year, and we have experienced that in 2025. We've adjusted guidance accordingly in our outlook."
"Looking to the future, with the expected approval of bempedoic acid this month, we are excited to launch this important therapy in Canada in the first half of next year. Bempedoic acid addresses a significant unmet need for more than half a million Canadians who require additional LDL-cholesterol lowering beyond currently available options. We will leverage the strong operational synergies with Vascepa and anticipate significant growth potential for this combined cardiovascular franchise as we build HLS into a leading Canadian CV company."
"We remain committed to operational efficiency to further optimize profitability, while a strengthening balance sheet will enable HLS to pursue additional growth opportunities beyond bempedoic acid. We expect growth in both revenue and Adjusted EBITDA next year and will provide detailed guidance when year-end results are reported in March."
UPDATED 2025 OUTLOOKRevenue projections for the Company's Canadian product portfolio are denominated in local currency to account for ongoing FX rate fluctuations.
2025 financial targets have been updated and are as follows:
Consolidated Adjusted EBITDA of $19.5-20.5 million (17-23% growth) is unchanged Consolidated revenue of $55-56 million, consisting of: Vascepa revenue growth in the mid-teen percentages (compared to prior estimate of 18-26% growth) Canada Clozaril revenue decline of 4-5% (compared to prior estimate of flat year-over-year revenue) U.S. Clozaril revenue decline of 2-4% year-over-year is unchanged Royalty revenue of $0.6-0.75 million (50-60% decline) is unchanged
Vascepa revenue growth in the mid-teen percentages (compared to prior estimate of 18-26% growth) Canada Clozaril revenue decline of 4-5% (compared to prior estimate of flat year-over-year revenue) U.S. Clozaril revenue decline of 2-4% year-over-year is unchanged Royalty revenue of $0.6-0.75 million (50-60% decline) is unchanged
Future results could be impacted by continued exchange rate volatility.
Q3 & YEAR-TO-DATE 2025 FINANCIAL REVIEWThe Company's Management's Discussion and Analysis and Consolidated Financial Statements for the three and nine months ended September 30, 2025, are available at the Company's website and at its profile at SEDAR+.
Revenue
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Product sales
Canada
10,519
11,087
30,748
30,878
United States
2,813
2,803
9,033
8,907
13,332
13,890
39,781
39,785
Royalty revenue
179
195
524
1,292
13,511
14,085
40,305
41,077
Revenue for Q3 2025 decreased 4%, due primarily to lower Clozaril Canada revenue, lower royalty revenues and FX rate fluctuations, offset in part by revenue increases from Vascepa and Clozaril U.S. For the year-to-date period, revenue decreased 2% with flat product revenue offset by FX rate fluctuations and a 59% drop in royalty revenue. For the year-to-date period, unfavorable foreign exchange negatively impacted revenue by approximately $0.8 million in fiscal 2025.
Product sales – Canada
000's of CAD
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
% change
2025
2024
% change
Clozaril
8,222
9,013
(8.8) %
24,740
26,009
(4.9) %
Vascepa
6,207
6,077
2.1 %
18,069
15,955
13.2 %
Other
65
27
173
54
14,494
15,117
(4.1) %
42,982
42,018
2.3 %
Canadian product sales in local currency decreased 4% in Q3 2025 due to lower Clozaril Canada sales that were largely attributable to competitive dynamics and inventory burn at select hospitals. This was partially offset by 2% growth in Vascepa. For the year-to-date period, Canadian product sales increased 2%, with a 13% increase in Vascepa sales offset, in part, by a 5% decline in Clozaril Canada sales. The timing of orders can impact quarterly results, and for this reason, the Company views year-to-date revenue as a more relevant measure for the comparison of year-over-year revenue performance.
Product Sales – United States
In the U.S. market, Clozaril revenue for Q3 2025 was up slightly year-over-year, while revenue for the year-to-date period increased 1% compared to the same prior year period last year.
Royalty revenues
As expected, royalty revenue has declined since the sale of the Xenpozyme royalty interest in Q2 2024. Royalty revenue for the three and nine months ended September 30, 2025, was down 8% and 59%, respectively, compared to the same periods last year. HLS has one remaining royalty interest which generated $0.18 million in revenue in Q3 2025.
Operating Expenses
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Cost of product sales
2,537
2,235
7,440
6,312
Selling and marketing
2,669
4,208
8,545
13,295
Medical, regulatory and patient support
1,272
1,439
4,074
4,124
General and administrative
2,111
2,077
6,334
6,255
8,589
9,959
26,393
29,986
With operating expenses, HLS continues to demonstrate strong operational discipline, helping to drive increases in Adjusted EBITDA and cash flow.
For the three and nine months ended September 30, 2025, operating expenses, comprising sales and marketing, G&A, and medical, regulatory, and patient support, were down 22% and 20% compared to the same periods last year. This was primarily due to lower selling and marketing expenses following the Company's discontinuation of co-promotional activities with its marketing partner in August 2024 as well as several staff vacancies during 2025 that have now been filled.
Cost of product sales increased for the three and nine months ended September 30, 2025, due primarily to higher Vascepa sales volumes.
Adjusted EBITDA1
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Net loss for the period
(3,918)
(4,844)
(11,095)
(16,632)
Stock-based compensation
785
511
1,901
1,194
Amortization and depreciation
5,511
5,508
16,354
17,283
Finance and related costs, net
2,027
2,389
5,689
7,998
Other costs (income)
534
621
861
(2,740)
Income tax expense (recovery)
(17)
(59)
202
3,988
Adjusted EBITDA
4,922
4,126
13,912
11,091
Adjusted EBITDA for the three and nine months ended September 30, 2025, increased 19% and 25%, respectively, compared to the same periods last year. The increases were primarily due to the ongoing focus on cost management and were partially offset by FX fluctuations and the previously mentioned decline in royalty revenue.
In Q3 2025, the direct brand contribution from Clozaril to Adjusted EBITDA was $6.3 million, while the direct brand contribution from Vascepa to Adjusted EBITDA improved from negative $0.6 million in Q3 2024 to positive $0.6 million. Year-to-date, the direct brand contribution from Clozaril to Adjusted EBITDA was $19.2 million, while the direct brand contribution from Vascepa to Adjusted EBITDA improved from negative $3.8 million to positive $0.7 million.
Net LossQ3 2025 net loss was ($3.9) million, or ($0.12) per share, compared to a net loss of ($4.8) million, or ($0.15) per share, in Q3 2024. Year-to-date net loss was ($11.1) million, or ($0.35) per share, compared to a net loss of ($16.6) million, or ($0.52) per share, in the same period last year. Net loss improved in both periods of 2025 due primarily to the previously noted factors that have positively impacted Adjusted EBITDA this year.
Cash from Operations and Financial PositionCash generated from operations for the three and nine months ended September 30, 2025, was $2.5 million and $10.6 million, compared to $1.5 million and $4.8 million in the same periods last year. This represents year-over-year increases of 67% and 121%, respectively.
Total borrowings under the credit agreement at September 30, 2025, were $53.1 million compared to $67.4 million at December 31, 2024, representing a reduction of 21%.
Year-to-date, HLS has made debt principal repayments of $13.9 million and under its share buyback program, has purchased 517,776 shares at a cost of $1.8 million since launching the buyback on March 17, 2025.
Cash was $10.8 million at September 30, 2025, compared to $17.5 million at December 31, 2024. The decrease reflects the debt principal repayments, and the share buyback activity described previously, offset, in part, by the significant increase in cash from operations.
Q3 2025 CONFERENCE CALLHLS will hold a conference call today at 8:30 am Eastern Time to discuss its Q3 and year-to-date 2025 financial results. The call will be hosted by Mr. Craig Millian, CEO, Mr. John Hanna, CFO and Mr. Brian Walsh, CCO. To view the slides that accompany management's discussion, please use the webcast link.
CONFERENCE ID: 19299
DATE: Thursday, November 13, 2025
TIME: 8:30 a.m. ET
WEBCAST LINK: https://app.webin ar.net/0d539rj9qEn
TRADITIONAL DIAL-IN NUMBER: 1-888-699-1199 or 1-416-945-7677
RAPIDCONNECT: To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/4pZWp5i
TAPED REPLAY: 1-888-660-6345 or 1-289-819-1450
REPLAY CODE: 19299#
The taped replay will be available for seven days and the archived webcast will be available for 365 days.
A link to the live audio webcast and replay of the conference call will also be available on the events page of the investors section of HLS Therapeutics' website at www.hlstherapeutics.com.
ABOUT HLS THERAPEUTICS INC.Formed in 2015, HLS is a pharmaceutical company focused on the acquisition and commercialization of late-stage development, commercial stage promoted and established branded pharmaceutical products in the North American markets. HLS's focus is on products targeting the central nervous system and cardiovascular therapeutic areas. HLS's management team is composed of seasoned pharmaceutical executives with a strong track record of success in these therapeutic areas and at managing products in each of these lifecycle stages. For more information visit: www.hlstherapeutics.com
1CAUTIONARY NOTE REGARDING NON-IFRS MEASURESThis press release refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of HLS's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of HLS's financial information reported under IFRS. HLS uses non-IFRS measures to provide investors with supplemental measures of its operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. HLS also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. HLS's management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess HLS's ability to meet its future debt service, capital expenditure and working capital requirements.
In particular, management uses Adjusted EBITDA as a measure of HLS's performance. To reconcile net income (loss) for the period with Adjusted EBITDA, each of (i) "stock-based compensation", (ii) "amortization and depreciation", (iii) "finance and related costs, net", (iv) "other costs (income)", and (v) "income tax expense (recovery)" appearing in the Consolidated Statement of Net Income (Loss) are added to net income (loss) for the period to determine Adjusted EBITDA. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with IFRS as issued by the IASB.
FORWARD LOOKING INFORMATIONThis release includes forward-looking statements regarding HLS and its business. Such statements are based on the current expectations and views of future events of HLS's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements, including, among others, statements with respect to HLS's pursuit of additional product and pipeline opportunities in certain therapeutic markets, statements regarding growth opportunities, expectations regarding financial performance, and the NCIB and ASPP. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting HLS, including risks relating to the specialty pharmaceutical industry, risks related to the regulatory approval process, economic factors and many other factors beyond the control of HLS. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause HLS's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. A discussion of the material risks and assumptions associated with this release can be found in the Company's Annual Information Form dated March 12, 2025, and Management's Discussion and Analysis dated November 12, 2025, both of which have been filed on SEDAR+ and can be accessed at www.sedarplus.ca. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and HLS undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
HLS THERAPEUTICS INC.
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
[in thousands of U.S. dollars]
As at
As at
September 30, 2025
December 31, 2024
ASSETS
Current
Cash
10,778
17,456
Accounts receivable
8,183
7,454
Inventories
7,106
9,058
Income taxes recoverable
80
71
Other current assets
1,389
1,361
Total current assets
27,494
35,400
Property, plant and equipment
1,267
997
Intangible assets
109,675
122,122
Deferred tax asset
1,247
857
Other non-current assets
545
528
Total assets
140,228
159,904
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities
10,587
8,709
Provisions
7,725
8,367
Debt and other liabilities
4,754
5,317
Income taxes payable
390
152
Total current liabilities
23,456
22,545
Debt and other liabilities
51,109
61,944
Deferred tax liability
3,924
4,074
Total liabilities
78,489
88,563
Shareholders' equity
Share capital
256,351
260,595
Contributed surplus
15,909
15,136
Accumulated other comprehensive loss
(7,698)
(10,210)
Deficit
(202,823)
(194,180)
Total shareholders' equity
61,739
71,341
Total liabilities and shareholders' equity
140,228
159,904
HLS THERAPEUTICS INC.
INTERIM CONSOLIDATED STATEMENTS OF LOSS
Unaudited
[in thousands of U.S. dollars, except per share amounts]
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Revenue
13,511
14,085
40,305
41,077
Expenses
Cost of product sales
2,537
2,235
7,440
6,312
Selling and marketing
2,669
4,208
8,545
13,295
Medical, regulatory and patient support
1,272
1,439
4,074
4,124
General and administrative
2,111
2,077
6,334
6,255
Stock-based compensation
785
511
1,901
1,194
Amortization and depreciation
5,511
5,508
16,354
17,283
Finance and related costs, net
2,027
2,389
5,689
7,998
Other costs (income)
534
621
861
(2,740)
Loss before income taxes
(3,935)
(4,903)
(10,893)
(12,644)
Income tax expense (recovery)
(17)
(59)
202
3,988
Net loss for the period
(3,918)
(4,844)
(11,095)
(16,632)
Net loss per share:
Basic and diluted
$(0.12)
$(0.15)
$(0.35)
$(0.52)
HLS THERAPEUTICS INC.
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Unaudited
[in thousands of U.S. dollars]
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Net loss for the period
(3,918)
(4,844)
(11,095)
(16,632)
Item that may be reclassified subsequently to net loss
Unrealized foreign currency translation adjustment
(1,240)
1,158
2,512
(2,178)
Comprehensive loss for the period
(5,158)
(3,686)
(8,583)
(18,810)
HLS THERAPEUTICS INC.
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Unaudited
[in thousands of U.S. dollars]
Notes
Share
capital
Contributed
surplus
Accumulated other comprehensive loss
Deficit
Total
Balance as at December 31, 2024
260,595
15,136
(10,210)
(194,180)
71,341
Shares repurchased
7
(4,244)
—
—
2,452
(1,792)
Stock option expense
7, 10
—
773
—
—
773
Net loss for the period
—
—
—
(11,095)
(11,095)
Unrealized foreign currency translation adjustment
—
—
2,512
—
2,512
Balance as at September 30, 2025
256,351
15,909
(7,698)
(203,261)
61,739
Balance as at December 31, 2023
262,127
13,865
(2,838)
(175,457)
97,697
Shares repurchased
(1,532)
—
—
932
(600)
Change in share purchase obligation
—
300
—
—
300
Stock option expense
7, 10
—
742
—
—
742
Net loss for the period
—
—
—
(16,632)
(16,632)
Unrealized foreign currency translation adjustment
—
—
(2,178)
—
(2,178)
Balance as at September 30, 2024
260,595
14,907
(5,016)
(191,157)
79,329
HLS THERAPEUTICS INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
[in thousands of U.S. dollars]
Three months ended
June 30,
Nine months ended
September 30,
2025
2024
2025
2024
OPERATING ACTIVITIES
Net loss for the period
(3,918)
(4,844)
(11,095)
(16,632)
Adjustments to reconcile net loss to cash provided
by operating activities
Stock-based compensation
785
511
1,901
1,194
Amortization and depreciation
5,511
5,508
16,354
17,283
Gain on royalty sale
—
—
—
(3,381)
Accreted interest expense
1,331
353
1,941
912
Foreign exchange
(432)
—
(432)
—
Fair value adjustment on financial assets and liabilities
—
18
—
523
Deferred income taxes
(62)
(47)
(540)
3,753
Net change in non-cash working capital balances related to operations
(739)
2
2,494
1,146
Cash provided by operating activities
2,476
1,501
10,623
4,798
INVESTING ACTIVITIES
Intangible asset acquisition
—
—
(1,000)
—
Other intangible additions
(215)
—
(215)
—
Additions to property, plant and equipment
(64)
—
(172)
(2)
Proceeds from royalty sale
—
—
—
13,250
Payment of purchase consideration
—
(1,500)
—
(1,500)
Cash provided by (used in) investing activities
(279)
(1,500)
(1,387)
11,748
FINANCING ACTIVITIES
Shares repurchased
(783)
—
(1,792)
(600)
Repayment of old credit agreement borrowing
(56,000)
(14,965)
(67,441)
(18,533)
New credit agreement borrowing
57,236
—
57,236
—
Repayment of new credit agreement borrowing
(2,518)
—
(2,518)
—
Debt costs
(1,220)
—
(1,220)
(1,191)
Lease payments
(159)
(131)
(453)
(386)
Cash used in financing activities
(3,444)
(15,096)
(16,188)
(20,710)
Net decrease in cash during the period
(1,247)
(15,095)
(6,952)
(4,164)
Foreign currency translation
(128)
120
274
(248)
Cash, beginning of period
12,153
32,515
17,456
21,952
Cash, end of period
10,778
17,540
10,778
17,540
SOURCE HLS Therapeutics Inc.
