Workflow
Sunshine Biopharma(SBFM) - 2024 Q1 - Quarterly Report
SBFMSunshine Biopharma(SBFM)2024-05-20 19:34

Company Overview - Sunshine Biopharma operates two wholly owned subsidiaries: Nora Pharma Inc. with 52 generic prescription drugs in Canada and Sunshine Biopharma Canada Inc. focusing on OTC products[67]. - The company has 32 additional generic prescription drugs scheduled for launch in 2024 and 2025, including NIOPEG®, a biosimilar of NEULASTA®[75]. - The Canadian generic drugs market is valued at approximately 9.7billionannually,andthenewproductsareexpectedtoenhancethecompany′smarketpresence[76].DrugDevelopment−SunshineBiopharmaisdevelopingproprietarydrugsincludingK1.1mRNAforlivercancerandSBFM−PL4forSARSCoronavirus,bothcurrentlyinanimaltesting[68][77].−DevelopmentofAdva−27aforpancreaticcancerhasbeenpausedduetounfavorableinvitroresultsobtainedinlate2023[68][78].−Thecompanyhasfiledmultiplepatentapplications,includingformRNAmoleculescapableofdestroyingcancercellsandsmallmoleculesinhibitingCoronavirusproteases[86][87].−NoraPharmaplanstolaunch32newgenericdrugstargetingvarioushealthareas,includingcardiovascularandoncology,inthenexttwoyears[75].−SunshineBiopharmahasenteredintoaresearchagreementwiththeUniversityofArizonafordevelopingPLproinhibitorsforSARS−CoV−2[83].−ThecompanyhasreceivedHealthCanadamarketingapprovalforNIOPEG®onApril17,2024,indicatingprogressinitsproductpipeline[75].−SunshineBiopharma′sproprietarydrugsindevelopmentincludeK1.1andSBFM−PL4,withongoingstudiestoconfirmtheirefficacyintreatingcancerandviralinfections[77][81].FinancialPerformance−ForthethreemonthsendedMarch31,2024,thecompanygenerated9.7 billion annually, and the new products are expected to enhance the company's market presence[76]. Drug Development - Sunshine Biopharma is developing proprietary drugs including K1.1 mRNA for liver cancer and SBFM-PL4 for SARS Coronavirus, both currently in animal testing[68][77]. - Development of Adva-27a for pancreatic cancer has been paused due to unfavorable in vitro results obtained in late 2023[68][78]. - The company has filed multiple patent applications, including for mRNA molecules capable of destroying cancer cells and small molecules inhibiting Coronavirus proteases[86][87]. - Nora Pharma plans to launch 32 new generic drugs targeting various health areas, including cardiovascular and oncology, in the next two years[75]. - Sunshine Biopharma has entered into a research agreement with the University of Arizona for developing PLpro inhibitors for SARS-CoV-2[83]. - The company has received Health Canada marketing approval for NIOPEG® on April 17, 2024, indicating progress in its product pipeline[75]. - Sunshine Biopharma's proprietary drugs in development include K1.1 and SBFM-PL4, with ongoing studies to confirm their efficacy in treating cancer and viral infections[77][81]. Financial Performance - For the three months ended March 31, 2024, the company generated 7,541,046 in sales, an increase of 2,646,993or542,646,993 or 54% compared to 4,894,053 in the same period of 2023[90]. - The direct cost of generating these sales was 5,186,709(695,186,709 (69%) for Q1 2024, up from 3,065,931 (63%) in Q1 2023, attributed to increased manufacturing costs of generic prescription drugs[90]. - Gross profit for the three months ended March 31, 2024, was 2,354,337,comparedto2,354,337, compared to 1,828,122 for the same period in 2023[90]. - General and administrative expenses increased to 3,704,926inQ12024from3,704,926 in Q1 2024 from 3,657,103 in Q1 2023, with notable increases in accounting, legal, marketing, and office expenses[91]. - The company incurred a net loss of 1,283,801(1,283,801 (0.02 per share) for Q1 2024, an improvement from a net loss of 1,702,430(1,702,430 (0.08 per share) in Q1 2023[92]. Cash Flow and Capital - Cash and cash equivalents as of March 31, 2024, were 17,434,208,withnetcashusedinoperatingactivitiesincreasingto17,434,208, with net cash used in operating activities increasing to 3,185,159 from 1,850,106inthesameperiodof2023[94].−Cashflowsusedininvestingactivitiesroseto1,850,106 in the same period of 2023[94]. - Cash flows used in investing activities rose to 668,736 in Q1 2024 from 146,303inQ12023,primarilyduetoinvestmentsinNoraPharma[95].−Cashflowsprovidedbyfinancingactivitieswere146,303 in Q1 2023, primarily due to investments in Nora Pharma[95]. - Cash flows provided by financing activities were 5,398,149 in Q1 2024, significantly higher than $538,299 in Q1 2023, due to a financing offering[96]. - The company believes existing cash will fund operations and R&D for the next 24 months, but anticipates needing to raise additional capital in the future[97]. Market Presence - The company holds four NPNs issued by Health Canada for various OTC products, indicating ongoing product development and market presence[89].