Filed by Automated Filing Services Inc. (604) 609-0244 - Medicure Inc.






Medicure Inc.
Item - 18 Reconciliation with United
States Generally Accepted Accounting Principles 
Years Ended May 31,
2006 and 2005
Three months ended August 31, 2006 and 2005
(Unaudited)
(expressed in Canadian dollars) 

     Medicure Inc. (the “Corporation”)
follows generally accepted accounting principles in Canada (“Canadian GAAP”) in
the preparation of its consolidated financial statements, which principles are
different in some respects from those applicable in the United States (U.S.GAAP)
and from practices prescribed by the United States Securities and Exchange
Commission. The Corporation has prepared a reconciliation of the significant
measurement differences between Canadian GAAP and U.S. GAAP in accordance with
Item 17 of Form 20-F, which, for the years ended May 31, 2006 and 2005 is
included in the Corporation’s 2006 consolidated financial statements in its
Annual Report on Form 20-F and for the three months ended August 31, 2006 and
2005 is included in the Corporation’s fiscal 2007 first quarter consolidated
financial statements included in its periodic report on Form 6-K. For purposes
of this registration statement on Form F-10, the Corporation is also required to
reconcile additional significant disclosure differences in accordance with Item
18 of Form 20-F. The additional significant disclosure differences between
Canadian GAAP and U.S. GAAP are set out below.

The financial information set out below as at August 31, 2006
and for the three months ended August 31, 2006 and 2005 is unaudited; however,
such information reflects all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation of the financial information for
the periods presented.

	(a) 	
      Accounts Payable and Accrued
  Liabilities:




	             As at: 	 	August 31, 	 	 	May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2006 	 	 	2006 	 	 	2005 	 	 	2004 	 
		 	(Unaudited)	 	 	 	 	 	 	 	 	 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	Trade and other accounts payable 	 	  	 	 	  	 	 	  	 	 	  	 
	     and accrued liabilities
    	$	 1,124,446 	 	$	 634,164 	 	$	 275,624 	 	$	 160,260 	 
	Accounts payable related to research 	 	  	 	 	  	 	 	  	 	 	  	 
	     and development 	 	1,533,396 	 	 	1,010,175 	 	 	2,457,130 	 	 	657,316 	 
	  	$	 2,657,842 	 	$	 1,644,339 	 	$	 2,732,754 	 	$	 817,576 	 



	(b) 	
      Accounts Receivable




	             As
      at 	 	August 31, 	 	 	May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2006 	 	 	2006 	 	 	2005 	 	 	2004 	 
		 	(Unaudited)	 	 	 	 	 	 	 	 	 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	Trade accounts receivable 	$	 277,252 	 	$	 – 	 	$	 – 	 	$	 – 	 
	Interest receivable 	 	242,607 	 	 	189,936 	 	 	97,917 	 	 	234,009 	 
	SR&ED refundable tax credit receivable
    	 	237,000 	 	 	237,000 	 	 	341,887 	 	 	– 	 
	GST receivable 	 	36,882 	 	 	17,895 	 	 	28,389 	 	 	16,924 	 
	Other 	 	2,032 	 	 	13,593 	 	 	1,557 	 	 	27,164 	 
	  	$	 795,773 	 	$	 458,424 	 	$	 469,750 	 	$	 278,097 	 








	(c) 	
      Contributed Surplus:




	Period ended 	 	August 31, 	 	 	May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2006 	 	 	2006 	 	 	2005 	 	 	2004 	 
		 	(Unaudited)	 	 	 	 	 	 	 	 	 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	Balance, beginning of period 	$	 2,070,670 	 	$	996,301 	 	$	 491,423 	 	$	 105,375 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	Stock-based compensation on options granted
      in 	 	  	 	 	  	 	 	  	 	 	  	 
	    the period 	 	184,813 	 	 	1,227,558 	 	 	504,878 	 	 	368,048 	 
	Transfer to capital stock 	 	(12,318	) 	 	(153,189	) 	 	– 	 	 	– 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	Balance, end of period 	$	 2,243,165 	 	$	 2,070,670 	 	$	 996,301 	 	$	 491,423 	 



	(d) 	
      Foreign Exchange Gain
(Loss)




	Period ended 	 	August 31, 	 	 	August 31, 	 	 	May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2006 	 	 	2005 	 	 	2006 	 	 	2005 	 	 	2004 	 
	  	 	(Unaudited) 	 	 	(Unaudited) 	 	 	 
    	 	 	 
    	 	 	 
    	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Foreign exchange gain (loss)
      	$	 325,433 	 	$	 (55,639	) 	$	 (200,437	) 	$	 64,413 	 	$	 – 	 




	(e) 	
      Stock-based
Compensation:




	Period ended 	 	August 31, 	 	 	August 31, 	 	 	May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2006 	 	 	2005 	 	 	2006 	 	 	2005 	 	 	2004 	 
	  	 	(Unaudited) 	 	 	(Unaudited) 	 	 	 
    	 	 	 
    	 	 	 
    	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Stock-based compensation 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	 expense recorded to: 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Research and development 	$	 77,290 	 	$	 25,257 	 	$	 151,945 	 	$	 132,174 	 	$	 156,642 	 
	General and administrative 	 	107,523 	 	 	64,059
      	 	 	593,625 	 	 	372,704 	 	 	229,406 	 
	  	$	 184,813 	 	$	 89,316 	 	$	 745,570 	 	$	 504,878 	 	$	 386,048 	 




	(f) 	
      Earnings per share

	 	 
		
      The following securities could potentially dilute basic
      earnings per share but have been excluded from its calculation since their
      effect would be anti-dilutive:




	  	 	August 31, 	 	 	August 31, 	 	 	May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2006 	 	 	2005 	 	 	2006 	 	 	2005 	 	 	2004 	 
	  	 	(Unaudited) 	 	 	(Unaudited) 	 	 	 
    	 	 	 
    	 	 	 
    	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Options: 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	   As at end of period
      	 	3,468,361 	 	 	2,504,333 	 	 	3,300,028 	 	 	2,372,333 	 	 	2,307,033 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Warrants: 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	   As at end of period 	 	6,706,860 	 	 	2,706,860 	 	 	6,706,860 	 	 	502,403 	 	 	502,403 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Total: 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	   As at end of period
      	 	10,175,221 	 	 	5,211,193 	 	 	10,006,888 	 	 	2,874,736	 	 	2,809,436