Cash from operations of $6.4 million in Q1 2026, up 80% year-over-year; net debt reduced to $31.9 million, down 32% from Q1 2025
NILEMDO™ full commercial launch in April
2026 financial guidance reaffirmed: revenue of $56–60 million and Adjusted EBITDA of $18.5–21 million
TORONTO, May 15, 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 months ended March 31, 2026 ("Q1 2026"). All amounts are in thousands of United States ("U.S.") dollars unless otherwise stated.
Q1 F2026 FINANCIAL HIGHLIGHTS (comparisons are to the respective 2025 period)
Q1 2026 revenue was $12.9 million, Adjusted EBITDA was $3.5 million and cash from operations was $6.4 million, compared to $12.6 million, $3.8 million and $3.5 million, respectively.
Vascepa net sales increased 15% to $4.8 million in Q1 2026, compared to $4.2 million.
Vascepa unit growth was 18% in Q1 2026, reflecting sustained demand growth.
Canada and U.S. combined net sales of Clozaril were $7.8 million in Q1 2026, compared to $8.2 million.
Q1 2026 direct brand contribution for Clozaril was $5.6 million and the cardiovascular portfolio had a break-even direct brand contribution inclusive of NILEMDO™ launch investment.
Made principal repayments on long-term debt totaling $5.1 million in Q1 2026.
Q1 F2026 CORPORATE HIGHLIGHTS
Completed preparation for NILEMDO's April commercial launch; subsequent to quarter-end, Canada Life and Sun Life - representing ~40% of privately insured Canadians - listed NILEMDO with full benefit and no prior authorization.
Clozaril patient volumes in Ontario returned to growth in March and April 2026, an encouraging indicator of business stabilization following the contracting dynamics experienced in 2025.
"Q1 results were in line with our expectations and consistent with our annual guidance," said Craig Millian, Chief Executive Officer at HLS. "The increase in revenue was driven by Vascepa, which had its strongest quarterly growth since mid-2025 and is a validation of the changes we made to strengthen the cardiovascular sales team last year. As expected, Adjusted EBITDA was lower year-over-year as we made a modest increase in commercial investment to help ensure a successful NILEMDO launch. Cash from operations was up significantly, reflecting the operational improvements we have made and lower interest expense - the result of our new credit agreement and a debt balance that is down more than 30% from a year ago."
"The NILEMDO launch is off to a positive start with weekly sales running ahead of forecast. In addition, Canada Life and Sun Life - two of the largest private payers in Canada, have added NILEMDO to their plans with no restrictions. These early results reflect the well-established clinical need for this medicine. For the estimated 500,000 Canadians who are not reaching their LDL targets on statins - whether due to intolerance or inadequate response - NILEMDO fills a meaningful treatment gap with an oral, well-tolerated option at a lower cost relative to injectable alternatives. Together, NILEMDO and NEXLIZET® represent a franchise we believe can more than double the size of the Company."
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 largely due to NILEMDO launch costs.
Of note, future results could be impacted by continued exchange rate volatility.
Mr. Millian added: "Our Q1 performance gives us confidence that 2026 is unfolding as planned. Launch-related investment is largely front-loaded in the first half of the year, with margins expanding as NILEMDO revenue ramps. Near-term catalysts include expanded private payer coverage by mid-year and anticipated public reimbursement and the launch of NEXLIZET in the first half of 2027. Our investments in 2026 are building the foundation for sustainable growth in 2027 and beyond, and with our balance sheet in the best shape it has been in years, we have the financial flexibility to pursue business development opportunities that can accelerate that growth."
Q1 F2025 FINANCIAL REVIEW
The Company's Management's Discussion and Analysis and Consolidated Financial Statements for the three months ended March 31, 2026, are available at the Company's website and at its profile at SEDAR+.
Revenue
Three months ended
March 31,
2026
2025
Product sales
Canada
9,965
9,708
United States
2,653
2,718
12,618
12,426
Royalties
246
197
12,864
12,623
Revenue for Q1 2026 increased by 2% compared to Q1 2025. The increase is due to growth in Vascepa net sales, which were $4.8 million, up 15% from Q1 last year, as well as appreciation of the Canadian dollar to the U.S. dollar.
Product sales, Canada
000's of CAD
Three months ended
March 31,
2026
2025
% change
Clozaril
7,016
7,929
(11.5) %
Vascepa
6,552
5,978
9.6 %
Other
98
32
13,666
13,939
(2.0) %
In local currency, Canadian product sales decreased 2% to C$13.7 million in Q1 2026, with Vascepa net sales growth offset by an expected decline in Clozaril. The Clozaril decrease reflects the residual year-over-year impact from Ontario contracting changes in 2025, which is expected to be concentrated in the first half of 2026. Clozaril patient numbers in Ontario grew sequentially in March and April, signaling stabilization in that business. Vascepa net sales growth reflects the commercial changes made in 2025.
Product Sales, United States
In the U.S. market, Clozaril revenue for Q1 2026 decreased 2% compared to Q1 2025, in line with expectations. The Company's specialty pharmacy program continues to help offset patient attrition.
Royalty revenues
Royalty revenue for Q1 2026 increased to $0.25 million compared to $0.2 million in Q1 2025. The Company received a final royalty payment related to the Eraxis royalty interest that was liquidated in Q4 2025.
Operating Expenses
Three months ended
March 31,
2026
2025
Cost of product sales
2,681
2,398
Selling and marketing
2,984
2,830
Medical, regulatory and patient support
1,509
1,436
General and administrative
2,227
2,139
9,401
8,803
Cost of product sales for Q1 2026 increased due primarily to higher Vascepa sales volumes.
Operating expenses for Q1 2026, comprising sales and marketing, G&A, and medical, regulatory, and patient support, increased 5% compared to Q1 2025, reflecting incremental NILEMDO launch investment.
Adjusted EBITDA1
Three months ended
March 31,
2026
2025
Net loss for the period
(2,297)
(4,436)
Stock-based compensation
142
651
Amortization and depreciation
5,536
5,360
Finance and related costs, net
(7)
1,972
Other costs
87
296
Income tax expense (recovery)
2
(23)
Adjusted EBITDA
3,463
3,820
Adjusted EBITDA for Q1 2026 was $3.5 million compared to $3.8 million in Q1 2025, reflecting incremental investment in the NILEMDO launch, partially offset by revenue growth from the base business.
For Q1 2026, the direct brand contribution from Clozaril to Adjusted ...
