HLS Therapeutics Inc.

Q2 revenue was $14.7 million, up 3.5% year over year; year-to-date revenue was up 2.8%. Adjusted EBITDA was $4.7 million, compared with $5.2 million in Q2 last year, about 10% lower year over year. Cardiovascular net sales rose 25% in Q2; Vascepa net sales grew 18% and units grew 16%; Nilemdo generated over $300 thousand in net sales in its first full quarter. Clozaril net sales in Canada were down 1%, while U.S. Clozaril sales were $3 million versus $3.5 million a year ago. Cash from operations was $2.9 million in Q2 and $9.3 million year to date, up 14% year over year; cash was $13.7 million at quarter end. The company reaffirmed 2026 guidance for revenue of $56 million to $60 million and adjusted EBITDA of $18.5 million to $21 million, and said it expects adjusted EBITDA margins to improve in the second half as Nilemdo ramps.

Craig Stuart Millian framed the quarter as evidence that HLS’s cardiovascular growth engine is accelerating, with Vascepa sustaining double-digit growth and Nilemdo launching ahead of forecast. He stressed that the company is now in a much stronger position after delevering, with a better balance sheet, consistent cash generation, and the ability to both buy back shares and pursue disciplined business development. His tone was confident and forward-looking, with several catalysts cited ahead, including broader Nilemdo reimbursement, public reimbursement negotiations, and a first-half 2027 launch for NEXLIZET if approved.

John Hanna focused on the financial bridge from launch investment to expected second-half margin improvement. He noted Q2 operating expenses were $7.2 million, up 10% year over year, cost of sales was up 14%, and adjusted EBITDA was $4.7 million versus $5.2 million last year. He also highlighted stronger cash generation, with cash from operations of $9.3 million year to date versus $8.1 million last year, interest expense of $1.3 million year to date versus $3.1 million, principal debt repayment of $1.1 million in Q2, term loan principal of $42.2 million, net debt of $28.5 million, and cash of $13.7 million. He said the company repurchased about 340 thousand shares for $1.4 million Canadian through July 31 under its 1.5 million-share NCIB.

Analysts focused on whether Vascepa’s renewed growth reflected the Nilemdo launch creating more customer time and cross-selling opportunity, and management said the two products are highly synergistic because they share nearly the same call points and customer base. Questions also centered on Nilemdo reimbursement and whether private coverage would remove prescription barriers; management said about 80% of privately insured Canadians now have access without prior authorization, versus roughly half of Vascepa’s private coverage carrying prior authorization. Another key topic was whether Q2 represented peak Nilemdo launch spend; management said Q2 was likely the peak of the four quarters, though spending remains dynamic and can shift based on return on investment and savings elsewhere.