Executive Summary

Q2 2024 delivered strong top-line growth: revenue rose 67% year over year to $9.30M and up 23% sequentially from Q1, driven by new product launches and expanded marketing at Nora Pharma; net loss narrowed to $(0.49)M from $(0.90)M YoY .
Gross profit improved to $2.36M, but higher manufacturing costs pushed cost of sales to 75% of revenue (vs 65% in Q2’23), keeping operating loss at $(1.27)M despite scale benefits .
No quantitative guidance was issued; management reiterated its focus on reaching profitability and highlighted near‑term launch plans (e.g., NIOPEG biosimilar expected on market in Oct 2024 in Canada) .
Consensus context: S&P Global estimates were unavailable via our data tool today. Third‑party sources indicate revenue estimates ~$9.0M (in line) and wide EPS estimate dispersion (−$0.37 to −$7.40), with an EPS miss on any of those marks given the reported −$9.94 basic loss/share; treat these third‑party figures as indicative only .
Potential stock catalysts: sustained Rx revenue growth from the 61-drug portfolio and 32 planned launches, NIOPEG commercialization, and capital structure developments (large outstanding Series B warrants) may drive sentiment; persistent gross margin pressure and ongoing net losses are key watch items .

What Went Well and What Went Wrong

What Went Well
- Revenue growth accelerated: Q2 sales up 67% YoY to $9.30M and +23% QoQ, reflecting new launches and expanded marketing/sales at Nora Pharma .
- Operating leverage vs prior year: net loss narrowed to $(0.49)M from $(0.90)M YoY as revenue scale partially offset higher opex; shareholders’ equity increased to $23.49M (+11% vs Dec 31, 2023) .
- Clear near‑term product catalyst: NIOPEG (biosimilar to Neulasta) received Health Canada approval and is anticipated to be on the market in Canada in October 2024, expanding the specialty portfolio .
- Management tone: “We are steadily advancing and working tirelessly to achieve our goal of profitability… confident that our efforts will lead us to success.” – CEO Dr. Steve Slilaty .
What Went Wrong
- Margin pressure: cost of sales rose to 75% of revenue (vs 65% in Q2’23) due to higher manufacturing costs, limiting gross margin expansion despite higher sales .
- Operating losses persisted: G&A increased to $3.62M vs $2.97M (+22%), with higher office, legal, marketing, R&D and salaries (incl. CEO bonus), sustaining a $(1.27)M operating loss .
- R&D setbacks linger: Adva‑27a program remains paused after unfavorable 2023 in vitro results; continued R&D outlays with no near‑term revenue contribution .
- EPS optics: reported basic loss/share of −$9.94 reflects very low weighted average share count post multiple reverse splits, complicating per‑share comparisons across periods .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
resid Revenue ($)	$5,560,865	$7,541,046	$9,303,067
Cost of Sales ($)	$3,608,118	$5,186,709	$6,946,810
Gross Profit ($)	$1,952,747	$2,354,337	$2,356,257
G&A ($)	$2,966,635	$3,704,926	$3,624,533
Operating (Loss) ($)	$(1,013,888)	$(1,350,589)	$(1,268,276)
Net (Loss) ($)	$(902,108)	$(1,283,801)	$(494,300)
Basic EPS ($)	$(71.17)	$(2.00)	$(9.94)
Weighted Avg Shares (basic)	12,675	641,310	49,726

Notes: EPS/share counts reflect reverse stock splits (1‑for‑100 on Apr 17, 2024; 1‑for‑20 on Aug 8, 2024), affecting per‑share comparability .

Reported vs Third‑Party Consensus (non‑SPGI; indicative only):

Revenue: Actual $9.303M vs estimate $9.000M (Moomoo); beat ~3%
EPS: Actual −$9.94 vs estimates −$0.37 (InvestorPlace/TradeSmith) and −$7.40 (Public.com); miss versus both non‑SPGI estimates

Segment/KPI snapshot (YTD through 6/30/24):

Revenue mix: ~97% generic Rx, ~3% OTC; management deems segment reporting immaterial .
Product breadth: 61 generic Rx drugs on market; 32 more planned 2024–2025; NIOPEG approved, anticipated market launch Oct 2024 (Canada) .
Cash & equivalents: $11.51M at 6/30/24 .

Guidance Changes

No quantitative financial guidance (revenue, margins, opex, tax rate, etc.) was provided for Q3/Q4 or FY24. Management reiterated its profitability objective and highlighted product launch cadence (e.g., NIOPEG), but did not issue numeric ranges .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	None	None	n/a
Gross Margin	FY 2024	None	None	n/a
OpEx	FY 2024	None	None	n/a
Product Launch Timing	2H 2024	NIOPEG approval secured	NIOPEG anticipated on market in Canada Oct 2024	Maintained timeline

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in our document set; themes are drawn from the 10‑Q and press releases.

Topic	Previous Mentions (Q4’23/FY’23; Q1’24)	Current Period (Q2’24)	Trend
Product launches/portfolio	FY23: Sales $24.1M; ramp at Nora Pharma; 32 launches planned 2024–2025 . Q1’24: 52 drugs on market; planning 32 launches .	61 drugs on market; NIOPEG approved; anticipated Oct 2024 launch in Canada .	Expanding portfolio; near‑term biosimilar catalyst.
Gross margin/cost inflation	Q1’24 COGS 69% of revenue; higher manufacturing costs noted .	Q2’24 COGS 75% (vs 65% Q2’23) on higher manufacturing costs .	Margin pressure increased QoQ/YoY.
NB operations	Q1’24: No explicit quantitative guidance; focus on profitability .	Continued “working tirelessly to achieve… profitability” .	Steady focus; no numeric guidance.
R&D pipeline	Adva‑27a paused (Nov 2023) . Q1’24: K1.1 mRNA and PLpro in animal testing .	Pipeline status unchanged; additional xenograft work for K1.1; PLpro program ongoing .	Measured progress; Adva‑27a still paused.
Regulatory/pricing	Canada generic pricing updated Oct 1, 2023; 3‑year term .	Same pCPA pricing regime noted as backdrop; pricing dependent on policy .	Stable policy backdrop through 2026.
Capital structure	Q1’24: $10M offering; warrants structure; April reverse split .	Aug 8, 2024 additional reverse split; 13.6M Series B warrants outstanding (as adjusted) .	Capital actions ongoing; potential future dilution/cash inflows from exercises.

Management Commentary

“We are steadily advancing and working tirelessly to achieve our goal of profitability… We remain committed to delivering value to our stakeholders and are confident that our efforts will lead us to success.” – Dr. Steve Slilaty, CEO .
Q2 highlight framing emphasized Nora Pharma’s expanded marketing and sales and new product launches as key growth drivers .
MD&A explained gross margin pressure stemming from higher manufacturing costs and detailed the composition of G&A increases, including legal, marketing, office, R&D, and salaries (with CEO bonus) .

Q&A Highlights

No Q2 2024 earnings call transcript was available in our dataset, and we did not find a call transcript via our filings repository. As such, there are no Q&A items to report for Q2 2024 [ListDocuments returned no earnings-call-transcript for SBFM].

Estimates Context

S&P Global consensus estimates were unavailable via our data tool today (daily request limit exceeded).
Third‑party sources (non‑SPGI, indicative only):
- Revenue: Actual $9.303M vs $9.000M estimate (Moomoo) – modest beat (~3%) .
- EPS: Actual −$9.94 vs estimates −$0.37 (InvestorPlace/TradeSmith) and −$7.40 (Public.com) – miss on these third‑party marks .
Given the dispersion in non‑SPGI sources and the company’s reverse splits affecting per‑share optics, exercise caution using third‑party EPS estimates for trading decisions.

Key Takeaways for Investors

Revenue momentum is real: +67% YoY and +23% QoQ to $9.30M, underpinned by Nora Pharma’s portfolio breadth and new launches; monitor sustainability of growth as base builds .
Margin pressure is a swing factor: cost of sales at 75% of revenue (vs 65% in Q2’23) reflects higher manufacturing costs; pathway to profitability hinges on gross margin recovery and operating discipline .
Near‑term catalyst: NIOPEG commercialization anticipated Oct 2024 in Canada could support specialty revenue mix and potentially margin profile; track ramp and pricing .
Ongoing net losses and opex profile (notably office, salaries, legal/marketing) suggest more work needed to reach break‑even despite revenue growth .
Capital structure complexity: large outstanding Series B warrants and recent reverse splits introduce dilution and trading volatility considerations, while providing potential cash inflows upon exercise .
No numeric guidance: absence of explicit outlook increases reliance on execution and quarterly prints; watch sequential growth, gross margin, and cash burn (cash $11.5M at 6/30/24) into 2H .
Trading stance: Focus on revenue trajectory from launches and any gross margin stabilization; EPS optics may remain noisy due to share count changes and lack of non‑GAAP adjustments.

Supporting Sources

Q2 2024 8‑K and press release highlights (revenue, net loss, YTD metrics, CEO quote): .
Q2 2024 10‑Q (financial statements, margins, G&A detail, cash, warrants, reverse splits, pipeline): .
Q1 2024 8‑K and 10‑Q (sequential comparisons, margin commentary): .
FY 2023 8‑K (baseline, growth context): .
Third‑party estimate references (non‑SPGI; indicative): InvestorPlace/TradeSmith, Moomoo, Public.com .

Sunshine Biopharma, Inc (SBFM)·Q2 2024 Earnings Summary