Crescita Reports Q4 and Fiscal 2024 Results

LAVAL, Quebec--(BUSINESS WIRE)--March 18, 2025-- 

Crescita Therapeutics Inc. (TSX: CTX and OTC US: CRRTF) ("Crescita" or the "Company"), a growth-oriented, innovation-driven Canadian commercial dermatology company, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2024 ("Q4-2024" and "F2024"). All amounts presented are in thousands of Canadian dollars ("CAD") unless otherwise noted and in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

Financial Highlights

Q4-2024 vs. Q4-2023

   -- Revenue was $6,902 compared to $4,725, up $2,177; 
 
   -- Gross profit was $2,995 compared to $3,060, down $65; 
 
   -- Operating expenses were $3,263 compared to $3,173, up $90; 
 
   -- Net loss was $(162) compared to $(150), up $12; 
 
   -- Adjusted EBITDA1 was $151 compared to $245, down $94. 

F2024 vs. F2023

   -- Revenue was $19,580 compared to $17,522, up $2,058; 
 
   -- Gross profit was $9,608 compared to $10,364, down $756; 
 
   -- Operating expenses were $12,823 compared to $12,320, up $503; 
 
   -- Net loss was $(2,750) compared to $(1,986), up $764; 
 
   -- Adjusted EBITDA1 was $(1,541) compared to $(368), up $1,173; 
 
   -- Ending cash of $9,273 compared to $9,385, down $112. 

"While 2024 financial results reflected some past business challenges, we made progress on initiatives that we believe strengthen Crescita's future," said Serge Verreault, President and Chief Executive Officer of Crescita. "We expanded our product portfolio with the acquisition of Aquafolia, which was immediately accretive to our bottom line, secured key manufacturing and medical aesthetics partnerships, and signed a new U.S. distribution agreement for Pliaglis, which we expect will be relaunched in the U.S. this year.

"Diligent cash management continues to be a top priority. Considering cash deployment of over $2.0 million in 2024 to fund the acquisition of strategic assets and the upgrade of plant equipment, we ended the year with a strong cash balance of $9.3 million. Our cash position affords us agility, as we continue to explore opportunities to enhance revenue and profits," concluded Mr. Verreault.

Operational and Corporate Developments

For the three months and year ended December 31, 2024 and up to the date of this press release:

New Distribution Agreement with IPG Pharmaceuticals Inc. for Pliaglis$(R)$ in the United States

   -- In December, we entered into an exclusive Distribution Agreement with IPG 
      Pharmaceuticals Inc. ("IPG") for the rights to Pliaglis in the United 
      States (U.S.). The agreement has an initial term of two years, and an 
      option to renew for an additional two years, upon mutual approval by the 
      parties. Under the terms of the agreement, Crescita will supply Pliaglis 
      at a pre-determined transfer price and will be eligible to receive 
      double-digit royalties on net sales. The parties have agreed to equally 
      share regulatory fees payable to the U.S. Food and Drug Administration 
      ("FDA"). IPG expects to commence selling Pliaglis in late 2025. 

Normal Course Issuer Bid ("NCIB")

   -- On September 24, we announced that the Toronto Stock Exchange (the "TSX") 
      approved the Company's proposed normal course issuer bid (the "NCIB") to 
      purchase up to a maximum of 1,478,854 common shares ("Common Shares") for 
      cancellation. The NCIB commenced on September 27, 2024 and will end on 
      September 26, 2025, or such earlier date as the Company completes its 
      purchases pursuant to the NCIB or provides notice of termination. In 
      order to facilitate purchases of Common Shares under the NCIB, we entered 
      into an automatic securities purchase plan with a broker. 

Amendment to Contract Manufacturer Supply Agreement, Securing US$10M over Four Years

   -- In July, we signed an amendment to our Contract Manufacturer Supply 
      Agreement (the "Amended Agreement") with our largest manufacturing 
      segment client (the "Manufacturing Client"), a global skincare company. 
      The Amended Agreement expands our existing partnership with the 
      Manufacturing Client and is the result of ongoing discussions since we 
      announced the cancellation of certain purchase orders by the 
      Manufacturing Client in Q4-2023. Under the terms of the Amended Agreement, 
      Crescita will manufacture selected products from the Manufacturing 
      Client's largest product franchises (the "New Products"), representing a 
      minimum commitment of US$2.5 million per year during a four-year term. 
      Manufacturing volumes of the New Products made up, in part, for 
      previously cancelled purchase orders. In connection with the cancelled 
      purchase orders, the Manufacturing Client reimbursed Crescita US$1.2 
      million in Q4-2024, mainly for the cost of unused inventory. To date, we 
      have invested approximately $1.2 million in manufacturing equipment to 
      meet the New Products' specifications and scale up our operations. 

Exclusive Manufacturing and Supply Agreement with Leading Canadian Healthcare Services Provider

   -- In July, we signed an exclusive Manufacturing and Supply Agreement (the 
      "Agreement") with a leading Canadian diversified healthcare services 
      provider (the "Client") to supply sanitary products, including hand 
      sanitizer, hand soap, and hand lotion (together the "Products"), for 
      onward distribution to a network of publicly funded healthcare 
      organizations, represented by a buying group (the "Buying Group" and the 
      "Buying Group Members"). The Agreement is for an initial term of five 
      years with a three-year renewal option exercisable by the Buying Group. 
      Based on the volumes forecasted by the Buying Group, annual revenue under 
      the Agreement may reach up to $6.0 million by the end of the initial 
      term. Crescita's manufacturing revenue will be contingent on the Client's 
      ability to convert Buying Group Members from their existing solutions to 
      its new sanitizer dispensing solution. As its exclusive manufacturing 
      partner, Crescita will support the Client in developing the public sector 
      healthcare market for the Products through competitive bidding processes 
      with other buying groups in Canada. 

Exclusive Distribution Agreement with NanoPass Technologies Ltd.

   -- In July, we signed an exclusive Distribution Agreement with NanoPass 
      Technologies Ltd. ("NanoPass"), a pioneer in the development and 
      commercialization of an advanced intradermal delivery device, to launch 
      and distribute MicronJetTM600 ("MicronJet") in the Canadian medical 
      aesthetics market. MicronJet is an innovative intradermal injection 
      device, leveraging the proven Micro Electro Mechanical Systems ("MEMS") 
      technology, that offers a highly effective, consistent and virtually 
      pain-free delivery of aesthetic products and therapeutic substances. With 
      three 0.6mm, silicon crystal-made delivery pyramids, MicronJet can be 
      attached to standard syringes and provides aesthetic clinicians with 
      minimally invasive and precise intradermal delivery, allowing 
      administration to delicate and sensitive areas such as around the eyes, 
      neck and décolleté area, as well as to the full face, for 
      optimal patient outcomes. MicronJet was approved by Health Canada and 
      launched in Q1-2025 through our medical aesthetics sales force. 

Acquisition of Strategic Assets of Occy Laboratoire Inc.

   -- On June 26, we completed the acquisition of all of the non-real estate 
      business assets of Occy Laboratoire Inc. ("Occy"), a Laval-based 
      manufacturer and distributor of high-quality dermocosmetic products (the 
      "Transaction"). The Transaction, conducted pursuant to the voluntary 
      proceedings initiated by Occy under the Bankruptcy and Insolvency Act and 
      having received an Approval and Vesting Order rendered by the Québec 
      Superior Court on June 19, 2024, enhances our product offering and client 
      base. As a precursor step leading to the Transaction, Crescita entered 
      into a subrogation agreement with Occy's former banker to purchase its 
      outstanding loan to Occy at a price significantly less than the principal 
      amount of the then outstanding debt and assumed the first-ranking secured 
      creditor rights. The assets, acquired for total cash consideration of 
      $0.9 million, comprise manufacturing equipment, inventory, customer 
      network and intellectual property and have an estimated fair value of 
      $1.7 million. Occy's revenue for fiscal 2023, its most recently completed 
      year-end, was approximately $1.5 million. 

Update on Licensing Agreement for Pliaglis(R) in China

   -- In April, the National Medical Products Administration (the "NMPA", 
      formerly the China Food and Drug Administration or "CFDA") confirmed the 
      need for a local clinical trial to support the registration of Pliaglis 
      in China. Our licensing partner, Juyou Bio-Technology Co. Ltd. ("Juyou") 
      is finalizing the protocol for the clinical trial and the manufacture of 
      required clinical study test articles. Juyou is assessing the timeline 
      for the clinical trial, subsequent registration stages, and the projected 
      launch date. Under the commercialization and development license 
      agreement, Juyou is contractually responsible for all expenses related to 
      obtaining regulatory approval in China and conducting the required 
      clinical trials. Crescita will supply Pliaglis at a pre-determined 
      transfer price and is eligible for potential regulatory and sales 
      milestones that could exceed US$2.2 million, as well as for tiered 
      double-digit royalties should the product's retail price surpass 

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