Sunshine Biopharma(SBFM) - 2023 Q2 - Quarterly Report

Company Overview - Sunshine Biopharma operates two wholly owned subsidiaries: Nora Pharma, which has 50 generic prescription drugs on the market in Canada, and Sunshine Biopharma Canada, which develops and sells OTC products [58]. - Sunshine Biopharma's acquisition of Nora Pharma has expanded its operational capacity, with Nora Pharma operating in a 15,000 square foot facility certified by Health Canada [63]. Product Development and Pipeline - Nora Pharma is set to launch 27 additional drugs over the next 18 months, enhancing its portfolio in the Canadian market [58]. - The company has a pipeline of 27 generic prescription drugs scheduled for launch between Q3 2023 and Q3 2024, covering various therapeutic areas [66]. - Sunshine Biopharma is developing proprietary drugs, including Adva-27a for pancreatic cancer, currently in IND-enabling studies, and K1.1 mRNA for liver cancer, which is in animal testing [67]. - Adva-27a has shown effectiveness against multidrug-resistant cancer cells and is being prepared for clinical trials in Canada [73]. - Sunshine Biopharma has entered into a research agreement with the University of Arizona to develop PLpro inhibitors for COVID-19, with an exclusive worldwide license agreement established [78]. - The company has filed multiple patent applications, including for a COVID-19 treatment targeting the main protease (Mpro) and the Papain-Like protease (PLpro), with priority dates maintained since May 2020 [82]. Financial Performance - For the three months ended June 30, 2023, the company generated $5,560,865 in sales, a significant increase of $5,410,558 compared to $150,307 for the same period in 2022, primarily due to sales from the recently acquired subsidiary, Nora Pharma [86]. - The direct cost of sales for the three months ended June 30, 2023, was $3,608,118 (64.9%), compared to $74,683 (49.7%) for the same period in 2022, reflecting increased costs associated with manufacturing generic prescription drugs [86]. - Gross profit for the three months ended June 30, 2023, rose to $1,952,747, compared to $75,624 for the same period in 2022 [86]. - General and administrative expenses for the three months ended June 30, 2023, were $2,942,370, an increase of $2,170,950 from $771,420 in the same period of 2022, driven by costs related to being a Nasdaq listed company and Nora Pharma operations [87]. - The company incurred a net loss of $902,108 ($0.02 per share) for the three months ended June 30, 2023, compared to a net loss of $538,872 ($0.03 per share) for the same period in 2022 [89]. - For the six months ended June 30, 2023, revenues were $10,454,918, an increase of $10,181,966 from $272,952 in the same period of 2022, again attributed to Nora Pharma's sales [90]. - The direct cost of revenues for the six months ended June 30, 2023, was $6,674,049 (63.8%), compared to $134,528 (49.3%) for the same period in 2022 [90]. - The company reported a net loss of $2,604,538 ($0.09 per share) for the six months ended June 30, 2023, compared to a net loss of $1,775,106 ($0.18 per share) for the same period in 2022 [92]. - As of June 30, 2023, the company had cash or cash equivalents of $19,729,491, with net cash used in operating activities amounting to $5,628,146 during the six months ended June 30, 2023 [93]. - The company estimates needing approximately $30 million in additional capital for the expansion of drug development activities and generic pharmaceuticals operations, including a potential Phase I clinical trial [98]. Market Position and Strategy - The company anticipates that the addition of new products will strengthen its presence in the Canadian generic drugs marketplace [66]. - The company holds 179 Drug Identification Numbers (DINs) for prescription drugs in Canada, secured through in-licenses from international manufacturers [84].