Canadian Halal Investor

TSX Shariah screener · September 2026

Is HLS Therapeutics (HLS) Halal?

FAIL

HLS Therapeutics · TSX: HLS · Health Care

The short answer

HLS Therapeutics Inc. (TSX: HLS) is a FAIL. The debt gate fails: the term loan principal of US$42.2M at June 30, 2026 (about C$58M) is roughly 46% of the ~C$128M market cap (about 30.9M shares at C$4.13, September 30, 2026) - above the ~33% ceiling. The business gate passes (specialty pharmaceuticals: Vascepa, Clozaril, NILEMDO; no standard prohibited activities). The income gate passes: interest income was US$12K in Q1 2026 (about 0.1% of revenue), immaterial against the ~5% ceiling. The cash gate passes: US$13.7M cash is about 15% of market cap. One failed gate suffices. No Zoya, Musaffa or ShariaPortfolio coverage was found. As with every screener here, this is a rules-based screening of published figures, not a religious ruling - consult a qualified scholar for personal guidance.

Gate 1 — Business activity: PASS

HLS Therapeutics Inc. is a Toronto-based specialty pharmaceutical company that acquires and commercializes branded pharmaceutical products in the North American markets, focused on psychiatric disorders and cardiovascular disease. Its portfolio includes Vascepa (icosapent ethyl for cardiovascular risk reduction; Q2 2026 net sales up 18%, the second consecutive quarter of double-digit growth), Clozaril (clozapine for treatment-resistant schizophrenia; Q2 2026 Canadian net sales down just 1% with five consecutive months of patient-base growth) and NILEMDO (bempedoic acid), fully launched in April 2026 with over US$300K net sales in its first full quarter and reimbursement secured with the largest Canadian private payers plus a unanimous positive CDA-AMC recommendation for public reimbursement; NEXLIZET is expected to launch in the first half of 2027. None of the standard AAOIFI prohibited business activities are part of its operations, so the business-activity gate passes. This is the same kind of business-activity pass as this site's Extendicare, Knight Therapeutics and Medical Facilities screens.

Gate 2 — Debt and cash: FAIL (debt) / PASS (cash)

The debt component fails. The company carries a conventional interest-bearing term loan: the principal balance was US$42.2M at June 30, 2026 (down 16% from end-2025 after a US$1.1M Q2 repayment), under a National Bank of Canada credit agreement signed August 19, 2025 (interest at CORRA plus 2.25% to 3.5% depending on leverage, maturing August 19, 2029, secured on substantially all of the company's assets). Converted at about 1.38, that is roughly C$58M, or about 46% of the ~C$128M market cap (about 30.9M shares outstanding - 31,273,681 at March 31, 2026 less 339,880 repurchased under the June 2026 NCIB - at C$4.13, September 30, 2026) - above the ~33% ceiling. The company reports net debt of US$28.5M (term loan less cash), but screening uses gross interest-bearing debt. Lease obligations of US$0.9M and deferred share units of US$1.6M are excluded as non-interest-bearing. The cash component passes: cash of US$13,730K (about C$19M) is about 15% of market cap - well under the ~33% ceiling. This is the same kind of debt-gate failure as this site's Bausch Health and Sienna Senior Living screens.

Gate 3 — Non-compliant income: PASS

Interest income is immaterial. The Q1 2026 interim financial statements (note 11) disclose interest income of US$12K against revenue of US$12,864K - about 0.1% of revenue (Q1 2025: US$32K). In Q2 2026 the finance-and-related-costs line was a net gain of US$222K, which included foreign exchange gains; the interest-income component is immaterial against Q2 2026 revenue of US$14,673K. This is far below the ~5% ceiling, so the income gate passes.

Key figures used

Frequently asked questions

Is HLS Therapeutics (HLS) halal?

Our September 2026 screen gives HLS Therapeutics Inc. (TSX: HLS) a FAIL. The business gate passes: it is a specialty pharmaceutical company (Vascepa for cardiovascular disease, Clozaril for psychiatric disorders, newly launched NILEMDO) with none of the standard prohibited activities in operations. The debt gate fails: the term loan principal of US$42.2M at June 30, 2026 (about C$58M) is roughly 46% of the ~C$128M market cap (about 30.9M shares at C$4.13, September 30, 2026) - above the ~33% ceiling. The income gate passes: interest income was US$12K in Q1 2026 (about 0.1% of US$12,864K revenue), and Q2 2026's finance-and-related-costs line was a net gain of US$222K including foreign exchange gains - interest income is immaterial. The cash gate passes: cash of US$13.7M is about 15% of market cap. One failed gate suffices. No Zoya rating, no Musaffa stock page and no ShariaPortfolio coverage for HLS Therapeutics was found via web search. This is a rules-based screening of published figures, not a religious ruling.

Why does HLS fail the debt gate?

HLS carries a conventional interest-bearing term loan: the principal balance was US$42.2M at June 30, 2026, under a National Bank of Canada credit agreement (interest at CORRA plus 2.25% to 3.5%, maturing August 19, 2029, secured on substantially all assets). Converted at about 1.38, that is roughly C$58M, or about 46% of the ~C$128M market cap (about 30.9M shares outstanding after the NCIB buyback, at C$4.13 on September 30, 2026) - above the ~33% ceiling. The company reports net debt of US$28.5M (term loan less cash), but Shariah screening uses gross interest-bearing debt, which fails the gate. Lease obligations (US$0.9M) and deferred share units (US$1.6M) are excluded as non-interest-bearing.

Does HLS Therapeutics earn interest income?

Only an immaterial amount. HLS's Q1 2026 interim financial statements disclose interest income of US$12K against revenue of US$12,864K - about 0.1% of revenue (Q1 2025: US$32K). In Q2 2026 the finance-and-related-costs line was a net gain of US$222K, which included foreign exchange gains; the interest-income component is immaterial against Q2 2026 revenue of US$14,673K. Under the ~5% non-compliant-income ceiling, the income gate passes comfortably.

What does HLS Therapeutics do?

HLS Therapeutics Inc. is a Toronto-based specialty pharmaceutical company that acquires and commercializes branded pharmaceutical products in North America, focused on psychiatric disorders and cardiovascular disease. Its portfolio includes Vascepa (icosapent ethyl; Q2 2026 net sales up 18%, the second consecutive quarter of double-digit growth), Clozaril (clozapine; Q2 2026 Canadian net sales down just 1% with five consecutive months of patient-base growth) and NILEMDO (bempedoic acid), which launched fully in April 2026 and generated over US$300K in net sales in its first full quarter, with NEXLIZET expected to launch in the first half of 2027. The company reaffirmed 2026 targets of US$56-60M revenue and US$18.5-21M Adjusted EBITDA. The business gate passes; the stock fails only the debt gate.

What do Zoya, Musaffa or ShariaPortfolio say about HLS?

No Zoya rating, no Musaffa stock page and no ShariaPortfolio coverage for HLS Therapeutics (HLS) was found via web search. The figures behind this screen's result come from the company's official Q2 2026 press release (August 12, 2026), its Q1 2026 unaudited interim consolidated financial statements (notes 6 and 11), and TSX market data as of September 30, 2026. This page records a rules-based screening of published figures and issues no fatwa - consult a qualified scholar for personal guidance.

Sources

Screened 2026-09-30 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.