MediPharm Labs scraps C$5.5M Ontario facility sale to Kensana Health | How to buy Skittles Moonrock online

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MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) terminated its proposed sale of an Ontario facility to Kensana Health after the buyer failed to meet certain conditions, the company announced Monday.

The deal, originally announced in December, would have sold MediPharm’s Napanee facility for C$5.5 million through the sale of subsidiary ABcann Medicinals Inc.

MediPharm will retain non-refundable deposits from Kensana Health, though specific amounts weren’t disclosed. The facility’s current commercial operations will continue uninterrupted, the company said.

During the initial December announcement, MediPharm CEO David Pidduck framed the deal as key to “enhancing operational efficiency while fostering strong partnerships.” Meanwhile, Kensana Health loses a facility meant to advance its pharmaceutical ambitions.

Ken Clement, CEO and founder of Kensana, had planned to use the facility to expand “pharmaceutical manufacturing capabilities for multiple plants, not just phytocannabinoids,” to develop FDA-approved topical chronic wound treatments, targeting a U.S. market that affects around 6.5 million patients with an annual cost burden exceeding $100 billion. The company was preparing for an international Phase 3 trial of its wound treatment in collaboration with the University of Sydney’s Clinical Trial Centre.

Pidduck now points to the company’s focus on growth overseas.

“Growing our profitable international revenue was a critical element of our success in 2024,” he said in a statement Monday. “We will continue to use the Napanee Facility to capitalize on international opportunities in 2025.”

The terminated sale comes as MediPharm deals with headwinds lately. The company missed analysts’ revenue expectations by nearly C$7 million last quarter and reported an accumulated deficit of C$185 million with only C$13 million in cash.