In this InvestorIntel interview, Tracy Weslosky talks to Valeo Pharma Inc.’s (TSX: VPH | OTCQB: VPHIF) Founder, CEO, and Director Steve Saviuk about Valeo’s record quarterly and annual revenues for the fourth quarter and the fiscal year 2022. Having reported their best quarter ever, Steve discusses how Valeo’s story can be summed up with, “growth and more growth.”

Over the course of the interview, Steve discusses the following highlights from Valeo’s record-breaking fourth-quarter and year-end 2022 financial results:

• Record quarterly revenues of $12.7 million in FQ4-22, up 274% over FQ4-21
• Record revenues in F2022 of $27.7 million, up 105% over F2021
• Record revenues forecasted in FQ1-23
• Creation of Ophthalmology Business Unit following the addition of XIIDRA^® and SIMBRINZA^®, expansion of Respiratory Business Unit to include allergy following the addition of ALLERJECT^®
• In excess of $60 million was raised in financings in 2022

With a sales force comprising 85 commercial representatives in the field, Steve goes on to provide an update on Valeo’s portfolio of high-growth potential products that focus on respiratory/allergy, ophthalmology, and hospital specialty products.

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About Valeo Pharma

Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory/Allergy, Ophthalmology, and Hospital Specialty Products. Headquartered in Kirkland, Quebec Valeo Pharma has all the necessary capabilities and a complete infrastructure to register and manage its growing product portfolio through all stages of commercialization.

To know more about Valeo Pharma Inc., click here

Disclaimer: Valeo Pharma Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

What a difference a year makes. Last year at this time we were heading into wave something or other of COVID, lockdowns and travel restrictions were still in place and people everywhere were getting pretty sick and tired of the whole situation. In Canada, we had the added reminder of massive protests in Ottawa and various border crossings. Life in general was not straightforward, nor was it ideal for the average individual. One year later, that seems like a distant memory and life is pretty much back to normal as long as you don’t spend too much time following global politics.

You may be wondering why I’m doing this look back? Because almost exactly one year ago was the last time I had a look at today’s company.

Not only has the world changed considerably in the last 12 months, so has Valeo Pharma Inc. (TSX: VPH | OTCQB: VPHIF). Valeo Pharma is a fast growing pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory/Allergy, Ophthalmology and Hospital Specialty Products. Headquartered in Kirkland, Quebec Valeo Pharma has all the necessary capabilities and a complete infrastructure to register and manage its growing product portfolio through all stages of commercialization.

On Monday, Valeo released it’s Fiscal 2022 results (for the year ended October 31, 2022) that included some pretty impressive growth in revenue and adjusted gross profit. But before we dig into the numbers here are a few key highlights from the last 12 months:

• In March 2022, the Company received final approval for the listing of its common shares and warrants on the Toronto Stock Exchange (“TSX”) with an effective trading date of March 29, 2022;
• In July 2022, the Company entered into a Commercialization and Supply Agreement with Novartis Pharmaceuticals Canada Inc. for the Canadian commercialization by Valeo of two innovative ophthalmic therapies, XIIDRA® and SIMBRINZA® in Canada;
• In July 2022, the Company entered into a License, Supply, and Commercialization agreement with Kaléo Inc. for the Canadian rights to ALLERJECT, (epinephrine injection, USP) auto-injector for the treatment of serious allergic reactions;
• In July 2022, the Company closed a non-dilutive US$30 million Secured Term Loan from Sagard Healthcare Partners;
• In August 2022, the Company appointed Kyle Steiger to the role of Senior Vice-President and Chief Commercial Officer and Jean-François Fournier as its new Business Unit Head – Ophthalmology;
• In September 2022, the Company entered into a Commercial Services Agreement with Veru Inc. for sabizabulin in Canada, a novel dual antiviral and anti-inflammatory agent being targeted for the treatment of hospitalized moderate-severe COVID-19 patients at high risk for acute respiratory distress syndrome (ARDS) and death

Adding numerous commercial assets to Valeo’s product portfolio had a material impact on the top line as the Company posted record 2022 revenues of C$27.7 million for the year-ended October 31, 2022 compared to C$13.6 million for the year-ended October 31, 2021 for a 105% increase. Record adjusted gross profit was C$9.4 million for the year-ended October 31, 2022 compared to C$4.5 million for the year-ended October 31, 2021, representing a 109% increase. A lot of this growth came in the Company’s fiscal Q4 where record revenues were C$12.7 million for the quarter ended October 31, 2022 compared to C$3.4 million for the quarter ended October 31, 2021 representing a 274% increase. The investments Valeo has made during prior years in its corporate and commercial infrastructure is starting to pay off by providing considerable operating leverage which is fueling this growth and paving a path towards profitability.

Valeo now has a total of 14 treatments/therapies in its product portfolio which has the Company anticipating that all its business units will continue to produce strong revenue and margin growth in 2023 as it forecasts delivering record quarterly revenues again in the first quarter of 2023. Annualized revenue run-rate as at the end of FY-22 now exceeds C$50 million, which represents a significant increase over the FY-22 record revenues of C$27.9 million.

Over the last year, it appears Valeo Pharma has really hit its stride. As long as the Company can keep growing its top line without continuing to add to the 115 full-time employees, that revenue should start to filter down to the bottom line and make investors happy. With a market cap of C$50 million, Valeo is currently trading at 1x its annualized revenue run rate.

In this interview, InvestorIntel Publisher and Editor in Chief Stephen Lautens talks to Valeo Pharma Inc.’s (TSX: VPH | OTCQB: VPHIF) Founder, CEO and Director Steve Saviuk about Valeoi’s record Q3 revenue and the addition of three new therapeutic drugs to its portfolio.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here to access InvestorChannel.com), Steve discusses Valeo’s acquisition of two opthalmic therapies from Novartis Pharmaceuticals under a commericalization agreement, as well as a new license with Kaleo Inc. for an auto-injector for serious allergic reactions. These three additional Health Canada approved products, Steve says, “are accretive immediately to us. The three products had existing revenues of $27 million, and we expect that to grow so our total revenue base basically doubled on the day that we made that acquisition.”

Steve also discusses Valeo’s record Q3 revenues of $6.1 million from sales ($15.1 million YTD), and Valeo’s cash position of over $27 million. Steve says that “those are trends that we expect to see continue.” He also says that with the recent hiring of former Novartis VP Kyle Steiger as Senior VP of Valeo, and the expansion of its sales team to 80-85 people, Valeo is poised for rapid commercial and revenue growth.

To access the full InvestorIntel interview, click here

Don’t miss other InvestorIntel interviews. Subscribe to the InvestorIntel YouTube channel by clicking here.

About Valeo Pharma

Valeo Pharma is a pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respirology/Allergy, Ophthalmology and Specialty Products. Headquartered in Kirkland, Quebec, Valeo Pharma has the full capability and complete infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.

To know more about Valeo Pharma Inc., click here

Disclaimer: Valeo Pharma Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Stock market investors love companies that can quickly expand and rapidly grow their revenues. The very best of these companies can sometimes grow revenue for many years in excess of 50%pa. This is because rapidly growing revenue means a company is scaling fast and their fixed costs become relatively smaller each year, allowing profits, once they begin, to surge.

In the case of Tesla, the Company grew its revenues for many years to gain scale. Then boom! In 2021, Tesla increased revenue by 71% and net earnings by 665%. Naturally, the stock price has responded to this, up about 20X in the past 3 years.

What if I told you there was a Company growing revenues twice as fast as Tesla?

Today’s company is doing just that.

Valeo Pharma Inc. (TSX: VPH | OTCQB: VPHIF) (“Valeo”) grew revenues 128% YoY in Q1, 2022. Analyst’s estimates are that Valeo will grow revenues by over 150% (2.5x) in 2022, and something similar again in 2023.

According to Marketscreener.com Valeo is forecast by analysts to increase revenue as follows: 2021 – C$13.6 million, 2022 – C$35.8 million, 2023 – C$74.1 million, and 2024 – C$112 million. Net profits are forecast to turn positive in 2023 at C$2.96 million then increase ~5x in 2024 to C$14.7 million. While these are only forecasts, Valeo is already showing it can grow rapidly as we saw in the recent Q1, 2022 results.

Valeo Pharma Q1, 2022 results highlights

• “Revenues were $4.2 million for the quarter ended January 31, 2022 compared to $1.9 million for the quarter ended January 31, 2021 and $3.4 million for the fourth quarter ended October 31, 2021, representing a 128% increase and 25% increase respectively. The increase resulted mainly from the added contribution of Redesca, and also a strong contribution from other products in the portfolio…..
• Net loss and Adjusted EBITDA in Q1-22 were down 23% and 19% respectively as compared to the prior Q4-21 quarterly performance. The improvement of our financial performance over the prior quarter results from improvement of our operating margins derived mainly from the revenue growth of our three lead products, Redesca, Enerzair and Atectura.”

Source: Valeo Pharma First Quarter 2022 financial results

Valeo Senior Vice-President and CFO, Luc Mainville, stated:

“Our first quarter 2022 results clearly demonstrated the growing impact of Redesca, Enerzair and Atectura on our revenues and margins. With the cost of implementing our new business and commercial infrastructure now fully accounted for, we anticipate that the sequential revenue growth of our lead products will expand our operating margins. This will help steadily decline our quarterly operating loss and favorably position Valeo to achieve cash flow positive status in the last quarter of the year on a going forward basis”.

Note: Bold emphasis by the author.

Valeo CEO, Steve Saviuk, stated:

“As we had forecasted, Redesca has rapidly become Valeo’s best selling product. Reimbursement coverage is positively impacting prescription growth for Enerzair and Atectura which is accelerating on a monthly basis.”

Valeo Pharma’s pharmaceutical products, uses, and estimated peak sales revenue

Source: Valeo Pharma company presentation

About Valeo Pharma

Valeo’s business is based on forming partnerships with pharmaceutical companies that do the research & development and manufacturing while Valeo concentrates on the regulatory requirements and the sales and marketing of the pharmaceutical products.

Valeo describe their business by stating the following:

• “Specialty pharma dedicated to the commercialization of innovative prescription products in Canada.
• Licenses and acquires Canadian rights to clinically de–risked, commercial stage, proprietary drugs.”

Valeo’s three leading specialty pharmaceuticals are Redesca, Enerzair and Atectura. These three pharmaceuticals now have more than 90% private and public Canadian reimbursement coverage, with additional coverage recently achieved in British Columbia, Saskatchewan and Prince Edward Island. Redesca is used as a blood thinner and Enerzair & Atectura are used for respiratory conditions such as Asthma.

Valeo Pharma’s pharmaceutical product areas – respiratory, specialty products, neurology, oncology

Valeo’s peak sales forecast for current portfolio

Source: Valeo Pharma company presentation

Closing remarks

Valeo Pharma is a company on the move. Company revenues are surging higher, up 128% YoY in Q1, 2022. Analyst’s forecasts are for Valeo’s revenue to go from C$13.6 million in 2021 to C$74.1 million in 2023, when Valeo is also forecast to become earnings positive. Valeo forecast their peak sales based only on their current portfolio of products have the potential to reach C$150 million pa.

Yet despite all this growth, Valeo’s stock price has only moved sideways the past few years. Tesla also saw its stock move sideways for several years before surging 20x higher. I will leave you to draw your own conclusions.

Valeo Pharma Inc. trades on a market cap of only C$52 million. Looks very promising.

In a recent InvestorIntel interview, Tracy Weslosky spoke with Steve Saviuk, CEO of Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF) about Valeo’s recent news release reporting record revenues for Fiscal 2021, up 81% over 2020.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Steve Saviuk said that Valeo is a revenue generating commercial stage company currently undergoing significant growth. With world-class products and a strong management team with a history of success, Steve said that the stage is set for Valeo to drive stronger revenue growth in the coming quarters as Valeo targets uplisting on TSX. Steve went on to highlight the success Valeo has achieved in obtaining Public Reimbursement for Redesca™ and two innovative Asthma therapies as provinces in Canada are increasingly agreeing to pay for them.

To watch the full interview, click here.

About Valeo Pharma Inc.

About Valeo Pharma Valeo Pharma is a pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respirology, Neurodegenerative Diseases, Oncology and other specialty products. Headquartered in Kirkland, Quebec, Valeo Pharma has the full capability and complete infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.