February 07, 2023

Valeo Pharma’s Redesca™ rollout is progressing rapidly, proving the value of its business model, as its revenue grows 280% in Q3, 2021

Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF | FSE: VP2) (“Valeo”) is a specialty pharmaceutical marketing company dedicated to the commercialization of innovative prescription drug products in Canada. Valeo focuses on achieving ‘speed to market’ for their product portfolio, which currently covers the key specific areas of respiratory, neurology, and oncology, as well as specialty products for broader use.

Valeo Pharma has a growing portfolio of pharmaceutical products

Source: Valeo Pharma company presentation

Redesca™ achieves speed to market and a rapid rollout across Canada

Valeo’s Redesca™ product is a low molecular weight heparin (“LMWH”) biosimilar, and it is starting to make good progress in the marketplace. Valeo announced on October 3, 2021, that Redesca™ has obtained approved for use listings in 700 hospitals and healthcare facilities across Canada. This followed on from the Redesca™ launch only 6 months earlier in April 2021 and the April 30 addition of Redesca™ onto the Ontario Drug Benefit Formulary.

Valeo has proven themselves again to be a super fast mover at getting new pharmaceutical products into the market.

Valeo CEO, Steve Saviuk, stated: “These listing agreements significantly expand the number of Canadian hospitals that can now access Redesca. Increased hospital accessibility, coupled with extensive public and private reimbursement coverage, provides a solid foundation to support the continued growth of Redesca…..”

Valeo Pharma is achieving record revenues (in Canadian dollars) and margins

As a result of the past several years of work, and the commercialization of Valeo’s 8 pharmaceutical products, Valeo announced on September 22, 2021 that it had achieved “record revenues and gross margins” in Q3 2021. Highlights included:

  • “Record revenues of $5.7 million compared to $1.5 million in Q3 2020, up 280%
  • Record gross margin of $2.2 million compared to $0.1 in Q3 2020, up 1602%
  • Net loss of $2.9 million compared to $1.6 in Q3 2020
  • Adjusted EBITDA loss of $0.8 million compared to $0.7 million in Q3 2020
  • Record YTD revenues after 9 months of $10.2 million, up 94% over the first 9 months of 2020.”

Certainly some very impressive results from Valeo. Looking ahead Valeo suggests that this is just the beginning as it is a targeting growing revenues 20x from C$8 million in 2020 to C$160 million by 2025.

Valeo Pharma targets to grow revenues 20x from 2020 to 2025


Source: Valeo Pharma company presentation

More about Valeo Pharma

Valeo’s business model is based on forming partnerships with pharmaceutical companies that do the research & development (R&D) and manufacturing, while Valeo  concentrates on the regulatory requirements and the sales and marketing.

Closing remarks

Valeo Pharma is delivering on its promises of rapidly commercializing and selling a growing portfolio of pharmaceuticals in Canada. Impressive Q3 revenue growth of 280% YoY and a 1,602% improvement YoY for gross margin speaks volumes towards validating Valeo’s strategy working.

Valeo is targeting a massive 20x increase in revenues from 2020 to 2025 and given their performance so far I would not bet against them.

Valeo adds the necessary missing key components, of addressing regulatory hurdles and of post-approval marketing, to the process of bringing new prescription drugs to the Canadian market by companies too small or too specialized to be able to afford these functions in-house.

Valeo Pharma trades on a market cap of C$71 million. Don’t miss this one.

Disclaimer: The author of this post may or may not be a shareholder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review their public documents to conduct your own due diligence. To access the InvestorIntel.com disclaimer and other important legal notices, click here.

Leave a Reply

Your email address will not be published. Required fields are marked *