Devonian Health Group Celebrates Remarkable Annual Financial Growth

Devonian Health Group Reports Impressive Financial Outcomes

Devonian Health Group Inc. (“Devonian” or the “Corporation”) (TSXV: GSD), a pioneer in clinical stage botanical pharmaceuticals, has announced outstanding financial results for the fiscal year that concluded on July 31, 2024. This announcement marks a significant achievement for the Corporation as it reinforces its commitment to developing innovative botanical pharmaceutical and cosmeceutical products.

Highlights from the Annual Report

According to Luc Grégoire, the President and Chief Executive Officer of Devonian, “This has been a breakout year for Devonian.” He emphasized the Corporation's scientific advancements and the remarkable performance of their subsidiary, Altius Health Care Inc. (“Altius”).

Impressive Revenue Growth

Devonian reported a staggering 749% increase in revenue in the fourth quarter, primarily attributed to the successful launch of DEXLANSOPRAZOLE, the exclusive authorized generic for gastroesophageal reflux disease (GERD) in Canada. This surge in sales has provided Devonian with substantial financial backing for ongoing operations, further enabling their research and development efforts.

Development of Thykamine™

Continuing advancements in scientific research have been pivotal for the Corporation, particularly regarding Thykamine™, which is under development as a multi-target anti-inflammatory treatment. Preparations for clinical studies focused on treating mild to moderate atopic dermatitis in pediatric patients are progressing. The company is making strides in pre-clinical studies to assess the impact of Thykamine™ on various inflammation biomarkers, reinforcing its dedication to addressing unmet medical needs.

Financial Overview

In terms of financial metrics, Devonian's distribution revenue for the fourth quarter reached $9 million, showcasing a robust 749% year-over-year growth driven largely by the DEXLANSOPRAZOLE launch. Overall, for the fiscal year ending July 31, 2024, distribution revenue hit $17.82 million, reflecting a remarkable 660% increase compared to the prior year.

Net Income and Cash Position

For the fourth quarter, Devonian achieved a net income of $1.081 million, equating to $0.007 earnings per share. This represents a substantial improvement from a loss of $0.863 million in the same quarter the previous year. Additionally, the company reported a net loss of $1.225 million for the fiscal year, a significant decrease from a loss of $4.600 million reported last year.

Strong Cash Reserves

As of July 31, 2024, Devonian's cash reserves were reported at $9.9 million, with total debt standing at $2.08 million. This marks an improvement from the beginning of the fiscal year when cash reserves were at $5.1 million and debt at $3.6 million.

About Devonian

Devonian is recognized for its commitment to addressing persistent medical challenges through botanical pharmaceuticals. The company is devoted to developing prescription botanical drugs derived from plant materials, aiming to treat inflammatory autoimmune diseases such as ulcerative colitis and atopic dermatitis. With over 15 years of foundational research, Devonian is firmly positioned to advance its mission as regulatory environments become increasingly favorable for botanical drug development.

Altius and Its Mission

Altius, as Devonian's commercialization subsidiary, plays a critical role in distributing these innovative products across Canada, ensuring they reach patients in need. The subsidiary's efforts are integral to Devonian's strategy, allowing both organizations to enhance the quality of life for various patients across demographics.

Frequently Asked Questions

What were the key financial highlights for Devonian in 2024?

Devonian reported a remarkable 749% increase in fourth-quarter revenue and total distribution revenue of $17.82 million for the fiscal year, marking a 660% rise from the previous year.

What is Thykamine™ and its significance?

Thykamine™ is a multi-target anti-inflammatory treatment currently under development by Devonian. It aims to address conditions such as atopic dermatitis effectively, particularly in pediatric patients.

How did Devonian's net income change in 2024?

The company posted a net income of $1.081 million in the fourth quarter, a significant turnaround from a loss of $0.863 million in the same period last year.

What is the role of Altius in Devonian's operations?

Altius is a wholly owned subsidiary focused on the commercialization of prescription pharmaceuticals in Canada, enabling Devonian to effectively distribute its innovative products.

Where can I find more information about Devonian's financial performance?

The consolidated financial statements and management discussion analyses are accessible online through Devonian's official website and SEDAR+.

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