07:56 AM EDT, 05/09/2024 (MT Newswires) -- HLS Therapeutics ( HLTRF ) reported a wider first quarter net loss than in the year earlier period as revenue fell. The company has also terminated its agreement with Pfizer.

The pharmaceutical company reported net loss was US$6.1 million, or US$0.19 per share, compared with a net loss of US$5.8 million, or US$0.18 per share, in Q1 2023. The higher net loss was due to changes to revenue and operating expenses. But it met the Capital IQ forecast.

Q1 2024 revenue (product sales and royalty revenue) was US$12.5 million, down from US$14.8 million last year. It missed the Capital IQ forecast of US$14.7 million.

Canadian product sales grew 4% from US$8.8 million to US$9.2 million, while U.S. product sales fell to US$2.6 million, from US$3.2 million. Royalty revenues declined 75% from US$2.7 million to US$0.7 million as the term for the largest royalty in the portfolio came to an end midway through Q4 2023, the company said.

HLS is also terminating its 2021 agreement with Pfizer for the promotion of its cardiovascular drug Vascepa to primary care physician groups as the model has not been profitable.

In its 2024 outlook, HLS said Vascepa revenue has been lowered to US$17 to US$18 million (C$22.5 to C$24.5 million), from US$20.5 to US$22.5 million (C$27..5 to C$30 million). Clozaril (indicated for the treatment of schizophrenia) demand trends are in line with expectations through April and it remains on track with its 2024 revenue outlook of about US$40 million. The 2024 outlook for the royalty portfolio also remains unchanged with it expected to generate revenue of US$3 to US$4 million.

"We made progress on several fronts in Q1, but financial results for Vascepa and Clozaril were below expectations as ex-factory orders typically placed at quarter end were pushed into April due to the early Easter holiday. As expected, the large decline in royalty related revenue had the greatest impact on revenue and Adjusted EBITDA," said Craig Millian, CEO.

He added: "Subsequent to quarter end, we saw a pick-up in activity as Canadian ex-factory sales for Vascepa and Clozaril grew 25% year-over-year in April as compared to March, which had a 3% year-over-year decline."