Company History and Overview Sunshine Biopharma Inc. (SBFM) is a pharmaceutical company that has been making waves in the industry with its diverse portfolio of life-saving medicines and cutting-edge research and development efforts. With a strong presence in both the generic prescription drug market and the development of proprietary drugs, Sunshine Biopharma is poised for continued growth and innovation.
Sunshine Biopharma was incorporated in the State of Colorado on August 31, 2006, under the name Mountain West Business Solutions, Inc. On October 15, 2009, the company underwent a reverse acquisition, acquiring Sunshine Biopharma Inc., which held an exclusive license to a new anticancer drug called Adva-27a. Following this transaction, the company changed its name to Sunshine Biopharma Inc. and began operating as a pharmaceutical company.
In December 2015, Sunshine Biopharma acquired all issued U.S. patents for the Adva-27a anticancer compound and terminated the previous license agreement. This move strengthened the company's proprietary drug development capabilities. However, it's worth noting that the development of Adva-27a has recently been paused pending further analysis of unexpected in vitro results obtained in late 2023.
The company's research efforts have continued to evolve over the years. In early 2020, Sunshine Biopharma initiated a new R&D project focused on developing a treatment for COVID-19. As part of this initiative, the company filed a provisional patent application in the U.S. for small molecules to inhibit the Coronavirus protease. Later, the research was expanded to also target the Coronavirus Papain-Like protease, demonstrating the company's adaptability and commitment to addressing pressing healthcare challenges.
A significant milestone in Sunshine Biopharma's history was the acquisition of Nora Pharma Inc., a Canadian generic pharmaceuticals company, on October 20, 2022. This strategic move allowed the company to expand its presence in the Canadian market, where Nora Pharma currently has 63 generic prescription drugs on the market. Nora Pharma operates in a 23,500 square foot facility certified by Health Canada, providing Sunshine Biopharma with a strong operational base in the country.
Financial Performance and Ratios Sunshine Biopharma's financial performance has been marked by a steady increase in revenues over the past few years. In the fiscal year ended December 31, 2023, the company reported total revenues of $24,092,787, a significant improvement from the $4,350,182 reported in the fiscal year ended December 31, 2021. This growth can be attributed to the successful integration of Nora Pharma and the company's expanding generic drug portfolio.
Despite the impressive revenue growth, Sunshine Biopharma has continued to report net losses, with a net loss of $4,506,044 in the fiscal year ended December 31, 2023, compared to a net loss of $26,744,440 in the fiscal year ended December 31, 2022. The company's net loss per share decreased from $3,520 in 2022 to $380 in 2023, indicating improved operational efficiency.
Financials Sunshine Biopharma's current ratio, a measure of its ability to meet short-term obligations, stood at 4.48 as of December 31, 2023, suggesting a strong liquidity position. The company's debt-to-equity ratio, a metric that reflects its capital structure, was 0.03, indicating a conservative approach to leverage.
For the fiscal year 2023, Sunshine Biopharma reported revenue of $24.09 million, a net loss of $4.51 million, operating cash flow of -$8.78 million, and free cash flow of -$9.56 million. In the most recent quarter (Q3 2024), the company reported revenue of $8.44 million, a net loss of $1.20 million, operating cash flow of -$1.36 million, and free cash flow of -$1.88 million. This represents a 42% year-over-year increase in revenue, driven by expanded marketing and sales efforts by Nora Pharma, the company's wholly-owned Canadian subsidiary.
Liquidity The company's strong liquidity position is further evidenced by its ability to maintain operations despite ongoing net losses. This liquidity provides Sunshine Biopharma with the financial flexibility to continue its research and development efforts while expanding its generic drug portfolio.
As of September 30, 2024, Sunshine Biopharma had a cash balance of $12.21 million. The company's debt-to-equity ratio stands at 0, indicating no long-term debt on its balance sheet. The current ratio of 5.74 and quick ratio of 3.57 further underscore the company's strong liquidity position. At present, Sunshine Biopharma does not have any disclosed available credit lines or facilities.
Quarterly Performance and Guidance In the most recent quarter ended September 30, 2024, Sunshine Biopharma reported gross revenues of $8,435,178, a 42% increase compared to the same period in 2023. For the nine-month period ended September 30, 2024, the company's gross revenues were $25,279,291, a 54% increase compared to the same period in 2023.
The company's strong quarterly performance can be attributed to new product launches and expanded marketing and sales efforts by its wholly owned subsidiary, Nora Pharma. Sunshine Biopharma has not provided specific financial guidance for the upcoming fiscal year, but the company's management has expressed optimism about the continued growth and expansion of its generic drug portfolio.
Regulatory and Legal Matters Sunshine Biopharma's operations have not been significantly impacted by any major regulatory or legal issues. The company has maintained a clean track record, with no major lawsuits or investigations reported during the period covered in this analysis.
Risks and Challenges As with any pharmaceutical company, Sunshine Biopharma faces a variety of risks and challenges. The highly competitive nature of the generic drug market, regulatory uncertainties, and the inherent risks associated with the development of proprietary drugs are some of the key risks the company must navigate.
Additionally, the company's reliance on its Canadian subsidiary, Nora Pharma, for a significant portion of its revenues introduces geographic concentration risk. Any disruptions or regulatory changes in the Canadian market could have a material impact on Sunshine Biopharma's financial performance.
Business Segments and Product Portfolio Sunshine Biopharma operates two main business segments:
1. Prescription Generic Pharmaceuticals Segment: This segment is operated through Nora Pharma Inc., a wholly owned subsidiary in Canada. Nora Pharma currently has a portfolio of 63 generic prescription drugs on the market in Canada, spanning therapeutic areas including oncology, cardiovascular, central nervous system, diabetes, and urology. This segment generated approximately 97% of Sunshine Biopharma's total revenues during the first nine months of 2024. Nora Pharma is planning to launch an additional 32 generic prescription drugs in the remainder of 2024 and 2025, further expanding its market presence.
2. Nonprescription Over-The-Counter (OTC) Products Segment: This segment is operated through Sunshine Biopharma Canada Inc., another wholly owned subsidiary. It develops and sells nonprescription over-the-counter products, accounting for approximately 3% of the company's total revenues. The OTC product portfolio includes items such as Essential9, Calcium-Vitamin D, L-Citrulline, and Taurine, all of which have received Natural Product Numbers (NPNs) from Health Canada for manufacturing and sale.
In addition to these segments, Sunshine Biopharma is conducting a proprietary drug development program focused on oncology and antiviral treatments. This includes K1.1 mRNA for liver cancer and SBFM-PL4 for SARS-Coronavirus infections. However, the development of the company's Adva-27a pancreatic cancer treatment has been paused due to unfavorable in vitro results.
Geographic Performance Sunshine Biopharma operates primarily in Canada through its Nora Pharma subsidiary, which sells generic prescription drugs in the Canadian market. The company does not have significant operations or sales outside of Canada, highlighting its focus on the Canadian pharmaceutical market.
Conclusion Sunshine Biopharma Inc. (SBFM) has demonstrated impressive growth and diversification in its pharmaceutical operations, leveraging its generic drug portfolio and proprietary drug development capabilities. The company's recent acquisition of Nora Pharma has further strengthened its position in the Canadian market, while its ongoing R&D efforts in areas like oncology and antivirals hold promise for future growth.
Despite the company's net losses, Sunshine Biopharma's strong liquidity position, conservative capital structure, and consistent revenue growth suggest a solid foundation for continued success. The company's focus on expanding its generic drug portfolio, particularly through Nora Pharma's planned launch of additional products, indicates potential for further revenue growth in the coming years.
As Sunshine Biopharma navigates the challenges of the pharmaceutical industry, investors will be closely monitoring its ability to execute on its strategic initiatives and capitalize on the opportunities ahead. The company's strong performance in the Canadian market and its ongoing research efforts in cutting-edge areas of medicine position it well for potential long-term success in the pharmaceutical sector.