BOUCHERVILLE, QC, April 30, 2026 /CNW/ - LSL PHARMA GROUP INC. (TSXV: LSL) (the "Corporation" or "LSL Pharma "), a Canadian integrated pharmaceutical company, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2025 ("Q4-25" and "FY-25"). All amounts are presented in millions ("M") of Canadian dollars.

Financial Highlights

   -- Record annual revenues for FY-25; 
 
   -- Dermolab and Virage Santé contributed for the 12-months to the CMO 
      results; 
 
   -- Du-Var results incorporated starting November 17, 2025; 
 
   -- Q4-25 and FY-25 results materially impacted by the Health Canada ("HC") 
      and Food & Drug Administration ("FDA") certification of the Steri-Med 
      plant, (see "Regulatory Compliance" below) as well as other non-recurrent 
      charges; 
 
   -- $12M convertible debenture closed in December 2025 contributed to our 
      $13.8M working capital; 
 
   -- Juno OTC results to be incorporated starting January 1, 2026. 

FY-25 vs FY-24

   -- Total revenues were $28.7M compared to $17.7M, up 62%; 
 
   -- CMO revenues stood at $25.5M compared to $10.5M, a 142% increase; 
 
   -- Eye-care segment revenues were $3.2M down from $7.2M; 
 
   -- Net loss of $2.8M compared to a net income of $3.3M; 
 
   -- EBITDA of $2.7M compared to $6.8M; 
 
   -- Adjusted EBITDA of $2.5M up from $2.4M. 

Q4-25 vs Q4-24

   -- Total revenues were $7.3M compared to $5.4 M, up 36%; 
 
   -- CMO revenues increased 56% at $6.7M compared to $4.3M; 
 
   -- Eye-care segment revenues were $0.6M down 42% from $1.1M, due to $0.4M 
      adjustments; 
 
   -- Net loss of $1.1M compared to a net income of $4.5M; 
 
   -- EBITDA loss of $0.3M compared to $5.6M EBITDA profit; 
 
   -- Adjusted EBITDA of nil down from $0.8M. 

FY-25 Corporate Development

   -- Entered into two strategic agreements to acquire the Canadian rights to 
      16 eye-drop products; 
 
   -- Secured marketing approval by Health Canada for six (6) sterile 
      ophthalmic solutions for the treatment of glaucoma and allergies; 
 
   -- Secured $23.2M of long-term debt and capital to fund the corporations' 
      growth initiatives, including a 4-yr $12M convertible debenture and a 
      $2.3M private placement; 
 
   -- Secured a $7.5M line of credit to support working capital investments, 
      increased to $11M in April 2026; 
 
   -- Expanded CMO activities by acquiring Laboratoire Du-Var Inc. in November 
      2025; 
 
   -- Acquired a second manufacturing line to increase 8-fold the production 
      capacity at the Steri-Med Pharma plant and help accelerate the 
      development of new eye-care ointment products. 

Subsequent to year-end

   -- On January 1st, 2026, acquisition of Juno OTC Inc. ("Juno OTC"), a 
      Toronto-based company commercializing private label products; 
 
   -- Secured US-FDA certification of Steri-Med to manufacture ophthalmic 
      ointment for the US market; 
 
   -- Signed a binding term sheet with Instapill Private Limited ("Instapill") 
      for the Canadian rights to private label Loratadine 10 mg Orally 
      Disintegrating Tablets $(ODT)$, a bioequivalent product to Claritin$(R)$ 
      Rapid DissolveTM. 

"We are very pleased with the strong progress achieved over the past year to position LSL for growth and shareholders' value creation. The acquisition of Laboratoire Du-Var strengthened our CMO platform and expanded our manufacturing capacity. The recent addition of Juno OTC brings over 40 products to our portfolio and will play a key strategic role in accelerating the commercialization of our expanding eye-care pipeline through major Canadian retail pharmacy networks", said François Roberge, President and CEO of LSL Pharma Group. "As we continue to invest in our ophthalmic pipeline and significantly scale up our manufacturing capabilities with the addition of a new 10-million-unit production line, the US FDA certification of eye-care plant represents a major milestone, opening the door to substantial growth opportunities in the U.S. market," added Mr. Roberge.

"While we have reached record annual revenues in Q4-25 and for the full year 2025, we look forward to consolidating the Juno OTC results starting January 1, 2026. During the last year, we have completed a series of transactions aimed at funding our growth and strengthening our balance sheet. These transactions give the Corporation the flexibility to properly integrate the recent acquisitions while reducing the financial burden associated with our debt " said Luc Mainville, Executive Vice-president and CFO of LSL Pharma. "Our Q4-25 results have been impacted by negative adjustments. These adjustments were necessary to address non--recurring situations and to harmonize accounting standards across all units within the LSL Pharma Group, thereby enabling the Corporation to more accurately reflect the value and performance of the group going forward," added M. Mainville.

Financial Results

The Corporation reports its revenues by business segment with revenues from LSL Laboratory, Dermolab Pharma ("Dermolab"), Virage Santé ("VSI") and Laboratoire Du-Var ("Du-Var") grouped into the CMO segment, and the Steri-Med Pharma ("Steri-Med") revenues presented in the eye-care segment. Starting January 1(st) , 2026, revenues of Juno OTC will be presented as a third business segment.

Fiscal Year Financial Results -- Twelve-Month Period Ended December 31, 2025

   -- LSL Pharma generated revenues of $28.7M for FY-25, up 62% compared to 
      FY-24, despite special provisions of $0.5 M. FY-25 CMO revenues were up 
      142% compared to FY-24 and similar to the quarterly revenues, benefited 
      from the acquisition of Dermolab, VSI and Du-Var, as well as the growing 
      revenues of LSL Laboratory. Eye-care revenues for FY-25 period were down 
      55% compared to the prior fiscal year. The FY-25 revenues were impacted 
      by the special provisions on sales, while the FY-24 revenues benefited 
      from the non-recurrent sales of Erythromycin to the US who were 
      experiencing a nation-wide product shortage situation. FY-24 results also 
      benefited from the OOS situation experienced in Canada by Steri-Med's 
      largest competitor. 
   -- Adjusted Gross Profit for the FY-25 was $9.1M, up 34% over the prior year 
      by benefiting from the contribution of Dermolab and Virage Santé 
      acquired in 2024, as well as the increased production at the Steri-Med 
      plant. Our Gross Profit performance for Q4-25 and FY-25 has been 
      significantly impacted by the lower production at the Steri-Med plant as 
      well as material adjustments. Steri-Med production activity was reduced 
      by more than 50% during the last quarter of 2025 as the site was 
      addressing requirements for its biennial audit with Health Canada as well 
      as making plant adjustments to comply with stringent FDA regulatory 
      requirements. While the reduced activity had a material negative impact 
      on Steri-Med's results it was required for ensuring a successful renewal 
      of the HC licence and more importantly for the successful approval of the 
      site for manufacturing US labelled products. Following the FDA 
      certification of the site announced in January 2026, the total 
      addressable market for Steri-Med's sterile manufacturing activities in 
      now estimated at more than $1.5 billion (IQVIA 2025). 
 
   -- SG&A expenses for FY-25 were $7.2M compared to $4.5M for FY-24 
      representing a 60% increase. The YoY increase was mainly due to the 
      addition of Dermolab and VSI. The SG&A ratio to sales decreased slightly 
      as we continue to take advantage of our HO infrastructure when 
      incorporating acquisitions. 
 
   -- Operating Loss was $2.1M for FY-25, compared to an operating profit of 
      $0.8M last year. The quarterly and FY results were impacted by the gross 
      profit, and SG&A performance described above. 
 
   -- Financial expenses for FY-25 increased by 53% at $2.9M compared to $1.9M 
      for FY-24. Despite the conversions and repayment of several debt/loans 
      during the year, financial expenses were impacted by the increased 
      expenses on lease facilities at LSL laboratory, and the addition of the 
      Dermolab and Laboratoire Du-Var lease starting December 2024, and 
      November 2025 respectively. FY-25 expenses have been impacted slightly by 
      the $12M convertible debt offering closed late in December 2025, which 
      was used to fund operations and the acquisition of Juno OTC. The fiscal 
      year financial expenses were also impacted by the $0.1M penalty on 
      redemption of the convertible debentures in August 2025. 
 
   -- Gain on Acquisitions. Our results for FY-25 included a $2.4M gain on 
      acquisition of Du-Var, while the FY-24 results were impacted by the $4.9M 
      gain on acquisition of Dermolab and Virage Santé. 
 
   -- Net Income (Loss). The Corporation generated a net loss of $2.8M compared 
      to a $3.3M net income for FY-24. The FY-25 results included a $0.8M loss 
      on settlement of the public debentures. Net income for FY-25 benefited 
      from the $2.4M gain on the acquisition of Du-Var while the FY-24 
      performance included a $4.9M gain on acquisition of Dermolab and VSI. 
 
   -- EBITDA. For the FY periods, EBITDA was $2.7M for FY-25 compared to $6.8M 
      for FY-24. During FY-24 EBITDA benefited from strong margins generated 
      during the first half of the year by Steri-Med due to the shortage of 
      Erythromycin in the US. 
 
   -- Adjusted $(A)$ EBITDA for FY-25 was $2.5M compared to $2.4M for FY-24, a 2% 
      increase. EBITDA % dropped from 14% in 2024 to 9% in 2025. The FY-24 
      EBITDA benefited from strong margins generated during the first half of 
      the year by Steri-Med due to the shortage of Erythromycin in the US while 
      the adjusted EBITDA for FY-25 reflected the impact of new costs and 

      expenses related to the investments and expansion of the product pipeline 
      in the eye-care segment. 

Fourth Quarter Financial Results -- Three-Month Period Ended December 31, 2025

   -- The Corporation delivered strong revenues in Q4-25 at $7.3M, up 36% 
      compared to Q4-24, despite revenue provisions of $0.5M (See "Adjusted 
      Gross Profit adjustments"). The quarterly increase results mainly from to 
      the addition of revenues from Dermolab acquired in December 2024, and to 
      a lessor extent from the impact of the Du-Var acquisition completed in 
      November 2025. CMO revenues increased by 56% at $6.7M in Q4-25 compared 
      to $4.3M for Q4-24. Revenues from the Eye-care segment were $0.6M for 
      Q4-25, down 42% compared to Q4-24. Before the special provisions for 
      returns, the revenues for the Eye-care segment in Q4-25 were similar to 
      last year. 
 
   -- Adjusted Gross Profit for Q4-25 stood at $1.6M; a 13% decrease compared 
      to Q4-24. Adjusted Gross Profit % in Q4-25 was down compared to Q4-24 due 
      to the mix of revenues as the % of revenues from Steri-Med dropped from 
      20% to 8%. 
 
   -- Adjustments to Gross Margins. During Q4-25, in addition to the material 
      impact of the reduced production at Steri-Med, our results were impacted 
      by non-recurrent adjustments that were related to 1) prior year 
      operations and transactions, 2) harmonization of inventory valuation for 
      the CMO segment following 3 acquisitions over the last 2 years, and 3) 
      inventory/COGS adjustments 
 
   -- SG&A expenses for Q4-25 were $2.0M compared to $1.2M in Q4-24, a 73% 
      increase. The quarterly increase was mainly due to the addition of 
      Dermolab and Du-var. 
 
   -- LSL Pharma generated an operating loss of $3.4M in Q4-25 compared to a 
      $0.3M operating profit in Q4-24. The quarterly and FY results were 
      impacted by the gross profit, and SG&A performance described above. 
 
   -- Financial Expenses for Q4-25 were 48% higher than Q4-24 at $0.8M compared 
      to $0.6M. Despite the conversions and repayment of several debt/loans 
      during the year, financial expenses were impacted by the increased 
      expenses on lease facilities at LSL laboratory, and the addition of the 
      Dermolab lease starting December 2024. 
 
   -- Loss (Gain) of settlement of debt was a gain of $0.7M for Q4-25 compared 
      to nil last year. The gain for Q4-25 related to impact of an interest 
      rate reduction on a portion of our term loans. For the FY-25 period, the 
      gain was offset by a $0.6M loss on repayment of the convertible debenture 
      last August. 
 
   -- Gain on Acquisitions for Q4-25 reflected the $2.4M gain on acquisition of 
      Du-Var, while the Q4-24 results were impacted by the $4.8M net gain on 
      acquisition of Dermolab and VSI. 
 
   -- Net Loss in Q4-25 was $1.1M, compared to $4.5M net income for Q4-24. The 
      net loss for the Q4-25 included the $0.7M gain on settlement of debt and 
      benefited from the $2.4M gain on the acquisition of Du-Var. The net 
      income performance for Q4-24 included a $4.8M gain on acquisition 
      of Dermolab. 
 
   -- EBITDA for Q4-25 was a loss of $0.3M, compared to $5.6M positive EBITDA 
      for Q4-24. Both Q4-25 and Q4-24 EBITDA results were impacted by 
      non-recurrent gain on acquisitions. 
 
   -- Adjusted (A) EBITDA loss for Q4-25 was a nil compared to a $0.8M Adjusted 
      EBITDA profit for Q4-24. The Adjusted EBITDA performance for Q4-25 was 
      impacted by the slower production at Steri-Med, lower-than-expected gross 
      margin due to revenue mix and the increase in the SG&A compared to last 
      year. 

Balance Sheet and Liquidities

   -- As a result of the Laboratoire Du-Var acquisition and continued 
      investment to support our growth, our current assets have increased by 
      $8.6M or 56% at YE-25 compared to YE-24 while current liabilities 
      increased slightly by $0.6M. Our working capital ratio stood at 2.34 at 
      YE-25 compared to 1.6:1 at YE-24, a 47% improvement. At the end of FY-25, 
      our cash stood at $0.5 M. On December 31, 2025, we were using $2.5M under 
      our $7.5M line of credit, which was recently increased to $11M. 
 
   -- Total assets have increased by 39% at YE-25 compared to YE-24, a $21.1M 
      increase. The increase reflects the investment in working capital to 
      support our growth, the addition of production equipment as well as the 
      acquisition of Du-Var which added $10.3M in total assets. 
 
   -- Total labilities increased by $19.1M at YE-25 compared to YE-24 due to a 
      series of debt financings required to support our growth and provide 
      capital for the Juno OTC acquisition closed on January 1, 2026. This 
      compares well with the $21.1M increase in total assets. 

Regulatory Compliance

   -- One of the most important value drivers for the eye-care segment is the 
      compliance of the Steri-Med site for sterile ointment manufacturing. 
      Compliance to local regulatory standards is a requirement for 
      commercializing products in each territorial jurisdiction. Manufacturing 
      plants must adhere to strict guidelines outlined by Health Canada, a 
      Standing Regulatory Member of the International Council for Harmonization 
      ("ICH") for ensuring the efficacy and safety of aseptic processes in 
      sterile pharmaceutical facilities. Aseptic processing is critical in 
      pharmaceutical sterile manufacturing to prevent contamination and ensure 
      product sterility. Health Canada and ICH provide a comprehensive 
      framework for the validation of aseptic processes, encompassing facility 
      design, equipment qualification, process validation, and ongoing 
      monitoring. Aseptic validation is a systematic process that ensures 
      sterile products are consistently manufactured under controlled 
      conditions. 
 
   -- Since 2019, Steri-Med holds a manufacturing licence from Health Canada, 
      and has recently been inspected by the FDA to manufacture sterile 
      ointments for the US market. (See "Product pipeline - Avaclyr" below). 
 
   -- Health Canada certification allows for commercialization in Canada. 
      Canada has established a Mutual Recognition Agreements (MRAs) with 
      several foreign countries such as European countries, covering 
      drug/medicinal products Good Manufacturing Practices (GMP) Compliance 
      Programs. Consequently, Health Canada and its MRA partners mutually 
      recognize each other's regulation and inspection records. As a 
      consequence of the MRAs, products manufactured by Steri-Med can be 
      registered and sold to several foreign territories without further 
      inspection. Due to the scarcity of high quality sterile ophthalmic 
      ointment manufacturers worldwide, international demand for our products 
      has been increasing. 
 
   -- Over the recent years, regulatory guidelines for sterile manufacturing 
      have become increasingly stringent, and regulators have increased 
      requirements prior to granting "compliance" status. Many manufacturing 
      sites in Canada, in the US and other countries have ceased to operate, 
      due to their inability to meet or adapt to these increasing standards. 
 
   -- During the last quarter of FY-25, Steri-Med underwent its biennial Health 
      Canada inspection and was required to implement enhanced operational and 
      administrative procedures to maintain and further strengthen its 
      compliance status. 
 
   -- While the site was allowed to continue non-filling activities, it had to 
      postpone filling activities for a 3-month period (Jan to March 2026) in 
      order to develop the corrective and preventive action plan requested by 
      HC (the "Plan"). Because of this regulatory request, no filling activity 
      took place at the Steri-Med plant during Q1-26 and the financial impact 
      of such production halt will be addressed in our Q1-26 financial 
      reporting. The latter production halt had no impact on sales activity and 
      revenues as our inventory levels for each commercial products were 
      increased in anticipation of the Health Canada inspection. 
 
   -- As of April 2, 2026, the plan submitted by Steri-Med was accepted by 
      Health Canada and full production resumed at that time. The site can 
      continue all manufacturing activities in parallel with the plan being 
      executed over the coming quarters. Implementation of this plan is well 
      advanced, and the Corporation does not anticipate any issues in 
      completing the plan within the agreed timelines. 

Steri-Med's ability to renew its HC license and to secure FDA compliance is a great asset for the Corporation as more companies are turning to LSL Pharma for their manufacturing requirements. With sterile ointment CMO alternatives becoming more and more scarce, and with barriers to enter the market increasing, the Corporation is well positioned to capitalize on global market opportunities.

Financial Statements and MD&A

LSL Pharma Group's financial statements and Management's Discussion and Analysis for the fourth quarter and fiscal year 2025 are available on SEDAR+ at www.sedarplus.ca and on the Corporation's website.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements as defined under applicable Canadian securities legislation. Forward looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition, belief, estimate or opinion, or result to occur. Forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "believe", "aim", "plan" "continue" or similar expressions. Forward-looking statements are based on a number of assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's ability to control or predict, that could cause actual results or performance to differ materially from those expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, potential changes in market conditions.

Readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that any of the events referred to in the forward-looking statements will transpire, and if any of them do, the actual results, performance or achievements of the Corporation may differ materially from those expressed or implied by the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date of this press release. The Corporation does not undertake to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About LSL Pharma Group Inc.

LSL Pharma Group Inc. is a Canadian integrated pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceutical products, as well as pharmaceutical, cosmetic and natural health products in solid, semi-solid and liquid dosage forms. Leveraging its technical expertise, certified facilities, and experienced team, LSL Pharma delivers high-quality solutions that meet the highest industry standards. The wholly-owned subsidiaries of LSL Pharma include Steri-Med Pharma Inc., LSL Laboratory Inc., Virage Santé Inc., Dermolab Pharma Ltd., Laboratoire Du-Var Inc. and Juno OTC Inc. For more information, please visit our website at www.groupelslpharma.com.

SOURCE Groupe LSL PHARMA INC.

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April 30, 2026 07:00 ET (11:00 GMT)