HLS Therapeutics (TSE:HLS) reported second-quarter fiscal 2026 revenue growth as its cardiovascular portfolio expanded 25% year over year, led by continued gains for Vascepa and the first full quarter of sales for newly launched NILEMDO.
Total revenue for the quarter ended June 30 was $14.7 million, up 3.5% from a year earlier. Adjusted EBITDA was $4.7 million, compared with $5.2 million in the prior-year period, reflecting investments associated with the NILEMDO launch. The company reaffirmed its full-year guidance for revenue of $56 million to $60 million and adjusted EBITDA of $18.5 million to $21 million.
Cardiovascular portfolio drives growth
Vascepa net sales increased 18% year over year in the second quarter, while unit volume rose 16%. For the first six months of 2026, Vascepa net sales grew 14% and units increased 17%.
Chief Operating Officer Brian Walsh said the company’s cardiovascular sales organization has broadened and deepened its prescriber base. He also said the NILEMDO launch has created additional time with the same physician customers targeted by Vascepa, supporting the two products’ commercial synergy.
“The NILEMDO story has a very clear value proposition,” Walsh said, adding that sales representatives can use those customer interactions to discuss Vascepa’s cardiovascular-risk-reduction benefits.
NILEMDO generated more than $300,000 in net sales during its first full quarter on the Canadian market, a result management said was modestly ahead of its forecast. Prescribers had started nearly 1,200 patients on the product by the end of the quarter, as measured by new-to-brand prescriptions. Walsh said that level was about 3.5 times where Vascepa stood at the same stage of its launch.
Management said NILEMDO’s sales growth continued through the quarter and was not primarily attributable to inventory stocking by wholesalers. Walsh said wholesalers are holding limited inventory and that the company is seeing prescription pull-through data and increasing weekly order rates.
Reimbursement developments and NEXLIZET timeline
On Aug. 5, HLS said NILEMDO secured reimbursement from Canada’s largest private payers, representing about 80% of privately insured Canadians. The company said most of those patients can access the drug as a full benefit without restrictions, with some agreements already in effect and the remainder expected to take effect during the third quarter.
Walsh contrasted the access profile with Vascepa, for which the company estimates roughly half of privately covered patients require prior authorization. For NILEMDO, HLS said the approximately 80% private coverage achieved so far generally does not require prior authorization.
Canada’s Drug Agency also issued a unanimous recommendation that participating public drug plans reimburse NILEMDO. HLS plans to begin negotiations with the pan-Canadian Pharmaceutical Alliance later this year and remains on track for initial provincial public listings during the first half of 2027.
Meanwhile, the company expects a Health Canada decision by year-end for NEXLIZET, a fixed-dose combination of bempedoic acid and ezetimibe. If approved, HLS expects to launch NEXLIZET in the first half of 2027.
CLOZARIL shows stabilization in Canada
Canadian CLOZARIL net sales declined 1% from the prior-year quarter, an improvement from first-quarter comparisons. HLS said its Canadian branded CLOZARIL patient base increased sequentially for five consecutive months through July.
The company reported monthly patient-base gains in Ontario over that period, while British Columbia posted double-digit patient growth from a year earlier. Alberta and Saskatchewan also showed accelerating growth rates, according to management.
Walsh said CLOZARIL retains about 50% market share in Canada. He attributed market-share retention and gains in part to the company’s patient-support services, its CSAN registry program, and the Pronto device integrated into that program. Management said the services have helped patients and pharmacies remain on the branded product, including amid periodic disruptions related to group purchasing organization contracts.
In the U.S., CLOZARIL sales were $3 million, compared with $3.5 million a year earlier. Management said the decline reflected both slightly lower demand and a difficult comparison, as the prior-year second quarter represented 28% of full-year U.S. CLOZARIL sales. The timing of the July 4 holiday in 2025 also pulled some ordering into June, the company said. HLS expects relatively flat year-over-year U.S. CLOZARIL sales comparisons in the second half of 2026.
Cash generation, debt reduction and share repurchases
Operating expenses totaled $7.2 million in the second quarter, up 10% year over year, primarily due to NILEMDO launch investment. Cost of sales rose 14%, driven by demand growth for Vascepa and initial NILEMDO sales.
Cash from operations was $2.9 million in the quarter, down from $4.6 million a year earlier. For the first six months, however, cash from operations increased 14% to $9.3 million. Chief Financial Officer John Hanna said year-to-date performance benefited from operational improvements and lower interest expense.
Year-to-date interest expense fell to $1.3 million from $3.1 million in the prior-year period. At June 30, the company had $13.7 million of cash, a term-loan principal balance of $42.2 million, and net debt of $28.5 million. The term-loan balance was down 16% from the end of 2025, while net debt was down 26%.
HLS launched a normal course issuer bid in June authorizing the purchase of up to 1.5 million common shares. Through July 31, the company had repurchased approximately 340,000 shares for C$1.4 million.
Millian said the company intends to continue screening business-development opportunities while prioritizing execution on its existing portfolio. He said HLS is seeking assets that can expand revenue, be accretive in the near term, and leverage its Canadian specialty-market infrastructure.
About HLS Therapeutics (TSE:HLS)
HLS Therapeutics Inc is a specialty pharmaceutical company. It is focused on the acquisition and commercialization of branded pharmaceutical products in the North American markets. The company is focused on treatment products for the central nervous system (CNS), and cardiovascular specialties. The company products include Clozaril, Absorica, Vascepa, CSAN Pronto, Trinomia and Perseris. The company earns revenue in the form of product sales and royalties, out of which product sales contribute to the majority of the revenue.
