Devonian Health Group Reports its Fourth Quarter and Annual 2025 Financial Results and Appointment of a New Board Member

Rhea-AI Summary

Devonian Health Group (OTCQB: DVHGF) reported fourth-quarter and fiscal 2025 results for the year ended July 31, 2025. Key metrics: Q4 distribution revenue $1.3M (down 87% YoY), FY distribution revenue $23.6M (up 22% YoY), Q4 net loss $0.375M ($0.003/share), and FY net loss $6.0M ($0.041/share). The FY loss included a $4.6M goodwill impairment and $0.2M IP impairment. R&D spending rose to $2.0M (up 55.8%) to support Thykamine pediatric phase 2/3 and preclinical work. The corporation is debt free after repaying $2.2M and held $7.0M cash at July 31, 2025. Pierre Labbé was appointed to the board.

Positive

• Fiscal distribution revenue +22% YoY to $23.6M
• Company is debt free after repaying $2.2M long-term debt
• Cash balance of $7.0M as of July 31, 2025
• R&D spending +55.8% to $2.0M, supporting Thykamine phase 2/3
• Board addition: Pierre Labbé with 30+ years and >$1B transaction experience

Negative

• Q4 distribution revenue $1.3M, down 87% YoY
• Fiscal net loss of $6.0M including a $4.6M goodwill impairment
• Cash decreased from $9.9M to $7.0M year-to-date
• Distribution revenue concentration: Dexlansoprazole = 93% of distribution sales

• Fourth quarter distribution revenues of $1.3 million
• Fourth quarter net loss of $0.4 million, $0.003 per share
• Annual distribution revenues of $23.6 million
• Annual net loss of $6 million, $0.041 per share
• Devonian is debt free with $7 million in cash as of July 31, 2025
• Pierre Labbé appointed as a new board member

QUÉBEC, Nov. 26, 2025 /PRNewswire/ - Devonian Health Group Inc. ("Devonian" or the "Corporation") (TSXV: GSD) (OTCQB: DVHGF), a biopharmaceutical corporation specializing in the development of prescription drugs targeting inflammatory diseases today announced financial results for its fourth quarter and fiscal year ended July 31, 2025.

Management Comments

"Our year-end results reflect a company that is financially disciplined, debt-free, and strategically positioned for the next phase of value creation. With this strong foundation, we are intensifying our efforts to advance Thykamine™'s added-value programs in the fibro-inflammatory space—an area where unmet medical needs remain significant. Our team is committed to executing with excellence as we continue building momentum and delivering on our long-term vision for Devonian." said Dr. Andre Boulet, Chairman and Chief Executive Officer of Devonian.

Business Highlights

• Completed preclinical studies aimed at demonstrating new potential applications of Thykamine™ across additional inflammatory diseases, including MASH and fibrosis.
• Focusing on the Thykamine™ phase 2/3 study in pediatric mild-to-moderate atopic dermatitis (eczema)
• Securing additional patent protection related to mechanisms of action and other therapeutic applications
• Appointment of Mr. Pierre Labbé, CPA as member of the Board of Directors. Mr. Jean Forcione has resigned. We thank him for his collaboration
• Continuing the distribution of two (2) products through Altius, namely the Pantoprazole Magnesium, until April 2026 and Cléo-35

Financial Highlights

(all amounts are in Canadian dollars)

• Distribution revenues for the fourth quarter were $1.3 million, down 87% year over year. This decrease is mainly related to the previously announced expiration of the distribution agreement for Dexlansoprazole in April 2025 which related to the subsidiary Altius Healthcare Group LP ("Altius") distribution business. For the fiscal year ended July 31, 2025, distribution revenues were $23.6 million, up 22% year over year. Dexlansoprazole represented 93% of the distribution revenues.
• For the fiscal year ended July 31, 2025, research and development expenses were $2 million, up 55.8% year over year. This increase is mainly driven by the preparation of the Thykamine™ pediatric Atopic Dermatitis phase 2/3 clinical study as well as the preclinical studies to support new applications.
• Net loss for the fourth quarter was $0.375 million, or $0.003 loss per share, as compared to a year-ago quarterly net income of $0.75 million, or $0.003 earnings per share. The decrease in net income is mainly related to the lower gross margin net of income taxes from the Altius products distribution business partly compensated by lower Selling and Administrative expenses.
• For the fiscal year ended July 31, 2025, net loss was $6 million or $0.041 per share, as compared to a $1.83 million net loss or $0.012 per share for the same period last year. The year over year increase in net loss is mainly related to a non-cash, one-time, goodwill impairment loss of $4.6 million and an impairment of intellectual property of $0.2 million both directly related to the Altius products distribution business.
• The Corporation is debt free after the repayment of its long-term debt of $2.2 million during the fiscal year ended July 31,2025.
• Cash and cash equivalents as of July 31, 2025, was $7 million, with no debt, as compared to cash and cash equivalents of $9.9 million and debt of $2.08 million at the beginning of the fiscal year.

The consolidated financial statements for the fiscal years ended July 31, 2025 and 2024, as well as the management & discussion analysis, are available under the Corporation's profile on SEDAR+ at www.sedarplus.ca and on the Corporation's website at: https://groupedevonian.com/investor-center/financial-reports/.

Appointment of Pierre Labbé as New Board Member

"The Devonian's Board of Directors is extremely pleased to be welcoming Mr. Pierre Labbé as director of the Corporation. Pierre brings a wealth of  financial experience that enhances the bench strength of the Board of Directors" said Dr. André P. Boulet, President and Chief Executive Officer of the Corporation.

Mr. Pierre Labbé has over 30 years of progressive financial leadership experience across various industries. He is currently the Executive Vice-President, Finance at Fonds QScale S.E.C., an organization building and operating high-density AI colocation facilities designed for large-scale training and inference. In this role, he oversees financial strategy, investor relations, financial reporting, tax, treasury, and risk management.

Prior to joining Fonds QScale S.E.C., Mr. Labbé served for five years as Chief Financial Officer ("CFO") of IMV Inc. He also previously held the positions of CFO and Corporate Secretary at LeddarTech Inc. and Medicago Inc. ("TSX"). In addition, Mr. Labbé has been a Director of Osisko Gold Royalties Ltd., a TSX- and NYSE-listed precious metal royalty company, since 2015. He currently serves as Chair of the Human Resources Committee and as a member of the Audit and Risk Committee. As a senior financial executive, Mr. Labbé has played a key role in financing, mergers, and acquisitions, overseeing transactions totaling over $1 billion.

Mr. Labbé holds a Bachelor's Degree in Business Administration and a license in accounting from Université Laval in Quebec City. He is a member of the Chartered Professional Accountants of Canada, the Québec Chartered Professional Accountants Order, and the Institute of Corporate Directors, where he also earned the ICD.D designation.

In addition, Mr. Jean Forcione tendered his resignation from the Board of Directors and its committees, effective as of September 30, 2025. "The Board of Devonian Health Group would like to take this opportunity to express its sincere gratitude and appreciation to Mr. Forcione for his valuable contribution to the company during his tenure of service," said Dr. Andre Boulet, Chairman of Devonian Health Group Inc.

About Thykamine™

Thykamine™, the first pharmaceutical product issued from Devonian's SUPREX™ platform, is a highly innovative product for the prevention and treatment of health conditions related to inflammation and oxidative stress including ulcerative colitis, atopic dermatitis, psoriasis, rheumatoid arthritis, and other autoimmune disorders. The anti-inflammatory, anti-oxidative and immunomodulatory properties of Thykamine™ have been demonstrated by a considerable number of in vitro and in vivo studies as well as in a Phase IIa clinical study in patients with mild-to-moderate distal ulcerative colitis and in a large Phase II study in adult patients with mild-to-moderate Atopic Dermatitis. Both Thykamine™ and SUPREX™ platform are covered by patents issued in several North American, European and Asian countries.

About Devonian

Devonian Health Group Inc. is a clinical stage pharmaceutical company specializing in the development of drugs for various auto-immune inflammatory conditions with novel therapeutic approaches to targeting unmet medical needs. Devonian's core strategy is to develop prescription drugs for the treatment of inflammatory autoimmune diseases including but not limited to ulcerative colitis and atopic dermatitis. Based on a foundation of over 15 years of research, Devonian's focus is further supported by a U.S. Food and Drug Administration set of regulatory guidelines favoring a more efficient drug development pathway for prescription botanical drug products over those of traditional prescription medicines.

Devonian is also involved in the development of high-value cosmeceutical products leveraging the same proprietary approach employed with their pharmaceutical offerings. Devonian also owns a commercialization subsidiary, Altius, focused on selling prescription pharmaceutical products in Canada, under a license from brand name pharmaceutical companies.

Devonian Health Group Inc. was incorporated in 2015 and is headquartered in Québec (Quebec) Canada where it owns a state-of-the art extraction facility with full traceability 'from the seed to the pill'. Devonian is traded publicly on the TSX Venture Exchange (the "Exchange") (TSXV: GSD) and on OTCQB Venture Market (OTCQB: DVHGF).

For more information, visit www.groupedevonian.com.

Cautionary Note Regarding Forward-Looking Statements

All statements, other than statements of historical fact, contained in this press release including, but not limited to those relating, the impact of proposed optimizations at the Corporations' projects, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, changes in accounting policies, the impact of inflation, the PCT patents for Thykamine™ might not be granted, and, generally, the above "About Devonian" paragraphs, which essentially describes the Corporation's outlook, constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the time of this press release.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that these assumptions will prove to be correct and there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All the forward-looking statements made in this press release are qualified by these cautionary statements and those made in our other filings with the applicable securities regulators of Canada. The Corporation refuses any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

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

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SOURCE Devonian Health Group Inc.

FAQ

What were Devonian (DVHGF) fourth-quarter distribution revenues for Q4 2025?

Devonian reported $1.3 million in distribution revenues for the fourth quarter ended July 31, 2025.

Why did Devonian (DVHGF) report a larger net loss in fiscal 2025?

Fiscal 2025 net loss was $6.0 million, driven in part by a $4.6 million goodwill impairment and a $0.2 million IP impairment.

How much cash did Devonian (DVHGF) hold at July 31, 2025 and is the company debt free?

As of July 31, 2025 Devonian held $7.0 million cash and reported it is debt free after repaying $2.2 million of long-term debt.

What R&D activity did Devonian (DVHGF) fund in fiscal 2025?

R&D expenses rose to $2.0 million (up 55.8%), supporting Thykamine pediatric phase 2/3 and additional preclinical studies.

How concentrated are Devonian's distribution revenues for FY 2025 (DVHGF)?

Dexlansoprazole accounted for approximately 93% of distribution revenues in fiscal 2025.

Who joined Devonian’s board and what is their background (DVHGF)?

Pierre Labbé was appointed to the board; he has 30+ years of financial leadership and has overseen transactions totaling over $1 billion.