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MediPharm Labs
(TSX:LABS)
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Rating:49Neutral
Price Target:
C$0.06
▼(-25.00% Downside)
Action:Reiterated
Date:10/27/26
The score is held back primarily by weak financial performance (still unprofitable with negative TTM cash flow and declining revenue) and bearish technicals (below major moving averages with negative MACD). Offsetting these, the earnings call points to meaningful operational improvement (positive EBITDA and quarterly net income, higher margins, and lower opex), while valuation support is limited because earnings are negative and no dividend yield is provided.
Positive Factors
Profitability and Margin Recovery
The combination of a 43% gross margin, lower operating expenses, and a second consecutive quarter of positive adjusted EBITDA indicates meaningful operating improvement. If sustained, this recovery can strengthen earnings quality, support reinvestment, and move the company toward durable profitability.
Negative Factors
VAC Reimbursement Cut
The 30% Veterans Affairs Canada reimbursement reduction has already reduced Canadian medical revenue and directly pressures channel economics. Unless cost, product mix, or supply actions fully offset the change, this policy shift can constrain revenue quality and margins over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Margin Recovery
The combination of a 43% gross margin, lower operating expenses, and a second consecutive quarter of positive adjusted EBITDA indicates meaningful operating improvement. If sustained, this recovery can strengthen earnings quality, support reinvestment, and move the company toward durable profitability.
Read all positive factors
MediPharm Labs (LABS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$27.77M
Dividend YieldN/A
Average Volume (3M)107.98K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-6.74%
EPS Growth43.54%
CountryCA
Employees127
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.01
Shares Outstanding427,177,150
10 Day Avg. Volume109,775
30 Day Avg. Volume107,978
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.76
Price to Sales (P/S)0.61
P/FCF Ratio-4.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)C$38.98M
MediPharm Labs Business Overview & Revenue Model
Company Description
MediPharm Labs Corp. operates as a pharmaceutical entity, specializing in the creation and global commercialization of premium, pharmaceutical-grade cannabis oils, concentrates, and sophisticated derivative products. Its market reach extends acros...
MediPharm Labs Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial recovery: return to profitability, highest adjusted EBITDA since 2019, robust margin expansion, meaningful sequential revenue growth driven by international markets (notably Germany), successful Phase II LiBBY clinical results validating the pharmaceutical platform, and balance sheet strength. Headwinds include a material 30% VAC reimbursement cut that reduced Canadian medical revenue, ongoing pricing pressure and competition in key markets (Germany), and broader prescribing/reimbursement uncertainties. Overall, the positive operational execution, clinical validation, and improved profitability notably outweigh the identified challenges.Positive Updates
Return to Profitability
Reported positive net income for the quarter — the company's first profitable quarter since 2019; second consecutive quarter of positive adjusted EBITDA (positive $0.9 million), the strongest adjusted EBITDA since 2019.
Negative Updates
Veterans Affairs Canada (VAC) Reimbursement Cuts
VAC reduced the maximum reimbursable amount from $8.50/gram to $6.00/gram (a 30% reduction) effective April 1, 2026, which negatively impacted the Canadian direct-to-patient medical channel (veteran-focused). Canadian medical cannabis revenue declined from $3.0 million in Q1 to $2.3 million in Q2.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Profitability
Reported positive net income for the quarter — the company's first profitable quarter since 2019; second consecutive quarter of positive adjusted EBITDA (positive $0.9 million), the strongest adjusted EBITDA since 2019.
Read all positive updates
Company Guidance
Management's guidance emphasized disciplined, margin‑focused growth in 2026 and beyond—prioritizing regulated medical markets, selective M&A, geographic expansion (France, Brazil, New Zealand, U.K.), and non‑smokable/pharma formats (oils and a metered‑dose inhaler dossier submitted). They pointed to Q2 metrics that underpin this plan: revenue of $10.0M (+11% sequential), international medical $5.8M (~58% of revenue, +26% sequential) with Germany +45% sequential/+33% YoY, Canadian medical $2.3M (from $3.0M), Canadian adult use $1.5M (+34% sequential); gross profit $4.3M (43% margin, +30% vs Q1, +13% YoY); operating expenses $4.0M (‑44% YoY, ‑4% sequential); adjusted EBITDA +$0.9M (second consecutive positive quarter, best since 2019) and positive net income (first profitable quarter since 2019). They also reiterated balance‑sheet flexibility to fund growth with $9.9M cash, virtually no debt, ownership of 2 facilities appraised >$15M, Q1 restructuring to deliver >$1M annualized savings, plans to mitigate the VAC reimbursement cut (30% reduction from $8.50 to $6/gram) via cost, supply‑chain and mix actions, and expected H2 shipments/replenishments for Brazil and New Zealand.MediPharm Labs Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
74
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.46M | 45.12M | 41.96M | 33.06M | 22.12M | 21.71M |
| Gross Profit | 14.22M | 13.97M | 12.80M | 5.86M | -1.91M | -15.25M |
| EBITDA | -3.50M | -6.54M | -7.52M | -10.48M | -27.09M | -38.55M |
| Net Income | -4.97M | -8.27M | -10.69M | -13.08M | -29.98M | -54.80M |
Balance Sheet | ||||||
| Total Assets | 45.99M | 45.74M | 53.73M | 63.94M | 65.50M | 92.36M |
| Cash, Cash Equivalents and Short-Term Investments | 9.85M | 10.81M | 11.69M | 17.98M | 24.14M | 34.11M |
| Total Debt | 421.00K | 201.00K | 388.00K | 2.29M | 632.00K | 216.00K |
| Total Liabilities | 10.56M | 9.93M | 10.55M | 10.93M | 9.49M | 9.21M |
| Stockholders Equity | 35.43M | 35.81M | 43.18M | 53.01M | 56.01M | 83.15M |
Cash Flow | ||||||
| Free Cash Flow | -960.00K | -5.60M | -5.01M | -12.81M | -16.93M | -14.00M |
| Operating Cash Flow | -897.00K | -5.50M | -4.86M | -12.34M | -16.07M | -13.21M |
| Investing Cash Flow | 412.00K | 4.62M | 413.00K | 6.87M | 5.16M | 35.00K |
| Financing Cash Flow | -37.00K | -18.00K | -1.85M | -368.00K | 796.00K | 27.80M |
MediPharm Labs Technical Analysis
Negative
0.08
Price Trends
0.07
Negative
0.07
Negative
0.07
Negative
Market Momentum
>-0.01
Negative
43.30
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LABS, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LABS.
MediPharm Labs Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | C$27.77M | -5.60 | -13.79% | ― | -6.74% | 43.54% | |
47 Neutral | C$3.40M | -1.75 | -43.92% | ― | -18.30% | -397.37% | |
45 Neutral | C$25.34M | -15.24 | -4.00% | ― | 16.66% | -1007.41% | |
44 Neutral | C$8.55M | -6.55 | -19.37% | ― | -19.20% | 42.54% | |
42 Neutral | C$9.34M | -2.67 | 28.59% | ― | 0.90% | 57.73% | |
41 Neutral | C$13.44M | -3.09 | -108.44% | ― | -0.23% | -142.54% |
* Healthcare Sector Average
TSE:LABS
MediPharm Labs
0.07
>-0.01
-10.96%
TSE:PCLO
PharmaCielo
0.05
<0.01
11.11%
TSE:OILS
Nextleaf Solutions
0.02
-0.04
-66.67%
TSE:ROMJ
Rubicon Organics
0.38
-0.13
-25.00%
TSE:AVCN
Avicanna
0.10
-0.16
-61.54%
TSE:INNO
InnoCan Pharma
1.90
-16.15
-89.47%
MediPharm Labs Corporate Events
Business Operations and StrategyProduct-Related Announcements
MediPharm Labs Enters Panama with CBD Inhaler as Latin American Medical Cannabis Market Accelerates
Positive
Oct 13, 2026
MediPharm Labs has entered Panama’s medical cannabis market with its first commercial shipment of CBD metered-dose inhalers to local partner Adeiwa Pharma, expanding an international footprint that already spans more than 10 countries. The s...
Business Operations and StrategyFinancial Disclosures
MediPharm Labs Sets Date for Q2 2026 Results Amid Global Medical Cannabis Expansion
Positive
Aug 11, 2026
MediPharm Labs has scheduled the release of its second-quarter 2026 financial results for August 13, 2026, before markets open, and will host a conference call and webcast later that morning to discuss performance. The company will also provide in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.