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Sunshine Biopharma Inc. (SBFM)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 revenue was $8.44M, up 42% YoY but down 9% QoQ; gross profit rose to $2.87M and EPS was $(0.94); net loss widened YoY to $(1.20)M and worsened QoQ versus Q2’s $(0.49)M .
  • Year-to-date revenue reached $25.28M (+54% YoY) with YTD net loss improving 9% to $(2.98)M; shareholders’ equity increased to $25.04M from $21.21M at 12/31/23 .
  • No formal financial guidance was issued; management reiterated focus on profitability. NIOPEG (Neulasta biosimilar) launch remains targeted for Q4 2024, a potential near‑term revenue catalyst .
  • Corporate actions/listing: the company executed reverse splits in April and August and regained Nasdaq bid-price compliance on Sept. 9, 2024, reducing delisting overhang risk .

What Went Well and What Went Wrong

  • What Went Well

    • Strong top-line growth: Q3 sales +42% YoY to $8.44M, driven by new product launches and expanded marketing/sales at Nora Pharma .
    • Gross profit improved to $2.87M vs $1.99M YoY (+44%), with gross margin expanding slightly YoY to 34.0% (=$2.866M/$8.435M) from 33.4% (=$1.990M/$5.958M) .
    • Balance sheet: shareholders’ equity rose to $25.04M (+18% vs 12/31/23), providing more flexibility for portfolio expansion and R&D .

  • What Went Wrong

    • Sequential softness: Q3 revenue declined 9% QoQ to $8.44M vs $9.30M in Q2; net loss worsened QoQ to $(1.20)M vs $(0.49)M in Q2 .
    • Elevated operating costs: Q3 G&A rose to $3.97M (vs $2.77M YoY), mainly higher salaries (new hires and CEO bonus), accounting, and marketing; operating loss was $(1.11)M vs $(0.78)M YoY .
    • Cash burn: YTD cash used in operations was $(9.12)M, reflecting inventory build, allowances to enter new markets, and expansion activities .

Financial Results

MetricQ3 2023Q1 2024Q2 2024Q3 2024
Revenue ($USD Millions)$5.96 $7.54 $9.30 $8.44
Gross Profit ($USD Millions)$1.99 $2.35 $2.36 $2.87
Gross Margin %33.4% (=$1.990M/$5.958M) 31.2% (=$2.354M/$7.541M) 25.3% (=$2.356M/$9.303M) 34.0% (=$2.866M/$8.435M)
Operating (Loss) ($USD Millions)$(0.78) $(1.35) $(1.27) $(1.11)
Net (Loss) ($USD Millions)$(0.65) $(1.28) $(0.49) $(1.20)
EPS (Basic) ($)$(50.72) $(2.00) $(9.94) $(0.94)
  • Segment reporting: Company deems segmentation immaterial; approximately 97% of sales are from Generic Pharmaceuticals and ~3% from OTC across periods .

KPIs

KPIQ1 2024Q2 2024Q3 2024
Generic drugs on market (Canada)52 61 63
Planned new launches (next periods)32 32 32
NIOPEG (Neulasta biosimilar) timingQ4 2024 (approved 4/17/24) Oct 2024 target Q4 2024 target
Cash & Equivalents (period-end, $M)$17.43 $11.51 $12.21
Shareholders’ Equity (period-end, $M)$24.82 $23.49 $25.04

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial (Revenue/EPS/Margins)FY/Q4 2024None providedNone provided— (no formal guidance issued in press release or 10-Q)
NIOPEG launch timingQ4 2024“October 2024” (Q2 filing) “Q4 2024” (Q3 filing) Maintained timing window (broadened from specific month to quarter)

Earnings Call Themes & Trends

Note: No Q3 earnings call transcript was found; themes reflect disclosures from Q1–Q3 filings and press releases .

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2024)Trend
Portfolio expansion52 drugs (Q1) to 61 (Q2); 32 new launches planned 63 drugs; 32 still planned Positive: steady SKU growth
Biosimilar launch (NIOPEG)Q1: approval Apr-17-24; Q2: anticipated Oct-2024 Anticipated Q4 2024 On track within Q4 window
Generic pricing/regulation (Canada)pCPA/CGPA price changes effective 10/1/23; 3-year term Same framework referenced Stable backdrop
Profitability focusMgmt stressing path to profitability (Q1, Q2 quotes) Reiterated “relentlessly pursuing profitability” Consistent emphasis
Cost structure/COGSQ1–Q2: higher COGS/manufacturing; allowances to win access YTD: higher cost of sales tied to retailer allowances, expansion Mixed: investments weigh near-term margins
Capital markets/listingQ1: auditor change; Q2: reverse split (Aug-8) Regained Nasdaq bid-price compliance (Sep-9) Reduced listing risk

Management Commentary

  • “At Sunshine Biopharma, we are relentlessly pursuing profitability… implementing cutting-edge strategies and enhancing our operations to foster sustainable growth.” — CEO Dr. Steve Slilaty (Q3 press release) .
  • “We are steadily advancing and working tirelessly to achieve our goal of profitability… optimizing our operations to ensure sustainable growth.” — CEO Dr. Steve Slilaty (Q2 press release) .
  • “We continue to make progress and work diligently toward our goal of attaining profitability.” — CEO Dr. Steve Slilaty (Q1 press release) .

Q&A Highlights

  • No Q3 2024 earnings call transcript was available in the document set; the company may not have hosted a call. No Q&A items to report [earnings-call-transcript search returned none].

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 2024 revenue/EPS was unavailable for SBFM at the time of this analysis; as a result, we benchmark results to YoY and QoQ trends rather than to consensus [GetEstimates error – no values available].

Key Takeaways for Investors

  • Sustained YoY growth (+42% Q3; +54% YTD) underscores Nora Pharma execution and successful product introductions despite sequential Q3 moderation following a strong Q2 ramp .
  • Margins remain the swing factor near term; YTD cost of sales and G&A reflect retailer allowances, hiring, and CEO bonus, pushing Q3 operating loss to $(1.11)M and net loss to $(1.20)M; watch for operating leverage as scale builds .
  • NIOPEG (Neulasta biosimilar) launch in Q4 2024 is a tangible catalyst that could lift revenue mix and gross profit if uptake is solid; monitor launch timing and early adoption .
  • Balance sheet improved with shareholders’ equity at $25.04M and cash of $12.21M, providing runway to fund expansion and R&D, though cash burn YTD remains material at $(9.12)M from operations .
  • Listing de-risking: reverse splits completed and Nasdaq bid-price compliance regained (Sep-9), reducing technical delisting risk; attention turns back to fundamentals and execution .
  • Absence of formal guidance and limited sell-side coverage increase the premium on sequential KPIs (SKU count, launch cadence, gross margin, opex discipline) for gauging trajectory .

Sources: Q3 2024 8‑K and press release ; Q3 2024 10‑Q ; Q2 2024 8‑K/10‑Q ; Q1 2024 8‑K/10‑Q ; Reverse split 8‑K ; Nasdaq compliance 8‑K .