Medicure (TSXV:MPH) Gross Margin % : 46.64% (As of Dec. 2023)

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What is Medicure Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Medicure's Gross Profit for the three months ended in Dec. 2023 was C$2.37 Mil. Medicure's Revenue for the three months ended in Dec. 2023 was C$5.07 Mil. Therefore, Medicure's Gross Margin % for the quarter that ended in Dec. 2023 was 46.64%.

Warning Sign:

Medicure Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.

The historical rank and industry rank for Medicure's Gross Margin % or its related term are showing as below:

TSXV:MPH' s Gross Margin % Range Over the Past 10 Years
Min: 44.19 Med: 76.26 Max: 89.77
Current: 62.42

During the past 13 years, the highest Gross Margin % of Medicure was 89.77%. The lowest was 44.19%. And the median was 76.26%.

TSXV:MPH's Gross Margin % is ranked better than
75.96% of 990 companies
in the Drug Manufacturers industry
Industry Median: 46.8 vs TSXV:MPH: 62.42

Medicure had a gross margin of 46.64% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Medicure was -2.50% per year.

Medicure Gross Margin % Historical Data

The historical data trend for Medicure's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Medicure Gross Margin % Chart

Medicure Annual Data

Trend

May14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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63.95

44.19

58.46

69.69

64.48

Medicure Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															73.69	69.03	67.45	72.77	46.64

Competitive Comparison of Medicure's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Medicure's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Medicure's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Medicure's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Medicure's Gross Margin % falls into.

Medicure Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Medicure's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	14	/	21.694
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(21.694 - 7.705)	/	21.694
	=	64.48 %

Medicure's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2.4	/	5.071
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.071 - 2.706)	/	5.071
	=	46.64 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Medicure (TSXV:MPH) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Medicure had a gross margin of 46.64% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Medicure Gross Margin % Related Terms

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Medicure (TSXV:MPH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Medicure Inc (TSXV:MPH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MCUJF:USA NGQ1:Germany

Address

2 - 1250 Waverley Street, Winnipeg, MB, CAN, R3T 6C6

Website

https://www.medicure.com

Medicure Inc is a biopharmaceutical company. It is involved in the research, clinical development, and commercialization of human therapeutics for the United States hospital market. Further, it also operates a specialty pharmacy in the United States of America. The company's present focus is the sale and marketing of its cardiovascular products, AGGRASTAT, ZYPITAMAG, and developing its e-commerce and mail order pharmaceutical business. The company operates in two segments namely, Marketing and distribution of commercial products and, Retail and mail order pharmacy. The majority of the company's revenue is generated from the marketing and distribution of the commercial products segment.

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