LSL PHARMA GROUP REPORTS RECORD REVENUES AND FIRST QUARTER 2026 RESULTS

About this update from Lsl Pharma Group Inc

BOUCHERVILLE, QC , May 25, 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 first quarter ended March 31, 2026 ("Q1-26"). All amounts are presented in millions ("M") of Canadian dollars. Q1-26 Corporate and Financial Highlights "During the first quarter of 2026, we saw the positive impact of the recent acquisitions of Juno OTC and Du-Var on our operating results and the diversification of our business platform. While profitability during the quarter was temporarily impacted by the Steri-Med production pause and acquisition-related integration costs, we expect the contribution of both Juno OTC and Du-Var to accelerate over the coming quarters as we leverage operational synergies and expand our respective business opportunities," said François Roberge, President and CEO of LSL Pharma Group. "At Steri-Med, full production activities resumed in April 2026 following the acceptance of our remediation plan by Health Canada. Management expects improved operating performance and margin recovery over the coming quarters following the production resumption and integration synergies from recent acquisitions. In addition, having received our first shipments of eye-drops, we remain on track for the commercial launch of our eye-care portfolio starting in Q2-26, which we believe positions the Corporation for significant improved operational and financial performance going forward," added Mr. Roberge. Q1-26 vs Q1-25 Results While Q1-26 profitability was impacted by temporary production interruption costs at Steri-Med, integration expenses related to the Juno OTC and Du-Var acquisitions, and the financing costs associated with the Corporation's growth strategy, management believes these factors are largely transitional in nature and expects profitability to improve as production normalizes and operating synergies are realized. Subsequent to Q1-26 "The Juno OTC and Du-Var acquisitions have diversified our revenue base and added another growth segment to our platform. With production at the Steri-Med plant having resumed in April, we are happy about our first quarter 2026 performance despite the slower activity at the Steri-Med plant resulting from the regulatory driven production halt. Record domestic revenues for our Eye-care division, driven by strong market share gains, have offset the financial impact of the slower Steri-Med production activity", said Luc Mainville, Executive Vice-president and CFO of LSL Pharma Group. The addition of Du-Var and Juno OTC give the Corporation significant opportunities for synergies, which will help drive improved financial performance going forward," added M. Mainville. Financial Results The Corporation reports its revenues in three business segments. Revenues from LSL Laboratory, Dermolab Pharma ("Dermolab"), Virage Santé ("VSI") and Du-Var are grouped into the CMO segment. The Steri-Med Pharma ("Steri-Med") revenues are presented in the Eye-care segment, and Juno OTC in our new Private Label segment. First Quarter Financial Results – Three-Month Period Ended March 31, 2026 Balance Sheet and Liquidities Regulatory Compliance – Steri-Med Financial Statements and MD&A LSL Pharma Group's financial statements and Management's Discussion and Analysis for the first quarter 2026 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 management team, LSL Pharma delivers high quality solutions that meet the most stringent 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. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2026/25/c7370.html

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