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Valeo Pharma Impresses Again with 210% Quarterly Year-over-Year Revenue Growth

Valeo Pharma Inc. (TSX: VPH | OTCQB: VPHIF) (“Valeo”) just released their FQ1/2023 earnings results and impressed again.

Below are some of the highlights:

  • Fifth consecutive quarter of revenue growth at $13.2 million in Q1-23, up 210% over Q1-22
  • Fifth consecutive quarter of adjusted gross profit increase at $4.2 million, up 178% over Q1-22
  • Physicians prescribing Enerzair and Atectura reached 1,583 at the end of Q1-23, representing 39% growth from the prior quarter and a 799% increase year-over-year
  • Total annual Enerzair and Atectura prescriptions reached 34,000 at the end of Q1-23, up 41% sequentially and 1917% year-over-year.

Impressive year-on-year (“YoY”) growth from Valeo

Just looking at the above results, the company has shown very impressive growth: revenue up 210% YoY, adjusted gross profit up 178% YoY, and some stunning stats regarding prescriptions growth with Enerzair and Atectura total prescriptions up 1,817% YoY.

Of note was Valeo’s FQ1/2023 results included a net loss of $6.2 million compared to a net loss of $5.9 million in FQ1/2022. Valeo put this down to “the increase in financial expenses.” No specifics were given so it is hard to comment. Valeo’s Senior Vice-President and Chief Financial Officer Luc Mainville stated: “With tight control over operating expenses, our growing revenues will result in a continued expansion of our gross profit and overall profitability going forward”.

Valeo’s CEO Steve Saviuk also expressed good news stating:

Our core innovative products continue to gain market share in their respective therapeutic areas significantly contributing to our revenue and margin growth. Enerzair and Atectura, our asthma therapies, continue their rapid adoption with Enerzair now the leading drug in the fast-growing triple-active asthma market.

If Valeo can continue its current trajectory of prescriptions growth and revenue growth in 2023, then it looks very likely that positive earnings are just around the corner in 2024.

Valeo Pharma company review

As a reminder for investors that may be new to Valeo, the Company is focused on rapidly bringing new specialty pharmaceuticals to market in Canada. Valeo does this by partnering with existing pharmaceutical companies that focus on research & development and manufacturing while Valeo concentrates on the regulatory requirements and the sales and marketing of the pharmaceutical products in Canada.

Valeo’s key pharmaceutical product range focuses on ophthalmology, respiratory/allergy, and hospital specialty products. Valeo also has pharmaceuticals in the areas of neurodegenerative disease and oncology (cancer) as well as a recently announced anti-viral and anti-inflammatory agent Sabizabulin being used for COVID-19 (currently under review with Health Canada).

Valeo Pharma’s pharmaceuticals by business unit (includes XIIDRA® for dry eyes, SIMBRINZA® for glaucoma, ALLERJECT® for allergies)

Source: Company presentation

Short-term catalysts

The next steps for Valeo include continual expansion of sales of their existing pharmaceuticals. The recent public reimbursement approval of Valeo’s Parkinson’s disease drug Onstryv® (safinamide) should also help boost revenues in 2023 and beyond. The potential approval of Sabizabulin by Health Canada in 2023 is another potential catalyst.

Valeo also intends to continue to work on bringing to market further niche pharmaceutical products.

Valeo Pharma’s forecast revenue growth to FY2025

Source: Company presentation

Closing remarks

Valeo continues to bring new pharmaceuticals rapidly to the Canadian market. As a result of its success revenue has been rising fast – from C$14 million in F2021, to C$28 million in F2022, and is forecasted to rise to C$63 million in F2023 and C$127 million in F2025. Analysts are forecasting that Valeo will become net income positive in F2024 and achieve C$15 million of net income in F2025.

Valeo Pharma trades on a market cap of C$43 million. One to follow closely in 2023.




Steve Saviuk of Valeo Pharma talks about revenue growth following impressive market gains

In this InvestorIntel interview with host Tracy Weslosky, Valeo Pharma Inc.’s (TSX: VPH | OTCQB: VPHIF) Founder, CEO and Director Steve Saviuk talks about the company’s revenue growth driven by new product launches.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Steve attributes Valeo’s 80% Q2 revenue growth over the same period last year to the market success of its 3 lead blood thinner and asthma brands, Redesca, Enerzair and Atectura, which are gaining on and have surpassed some of its major competitors in numbers of new prescriptions, which means significant revenue for the company. Steve goes on to say that pharmaceutical biosimilars have taken over 80% of the market in British Columbia and over 70% of the market in Quebec, and are growing in other major markets.

He also attributes Valeo’s success to the expansion of the company’s team. “We’ve grown dramatically in the last year in terms of people,” he tells Tracy, “and I think you need to have commercial teams out there to in their in order to market products. We’ve grown to over 100 people from about 25-30 people in May-June of last year.”

To access the full InvestorIntel interview, click here

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About Valeo Pharma Inc.

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.

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].




Valeo Pharma revenues jump on increased market share from growing drug portfolio

Valeo Pharma Inc. (TSX: VPH | OTCQB: VPHIF) is a Canadian pharmaceutical company that is seeing significant success with its three lead brands: Redesca™, Enerzair®, and Atectura®. These products are quickly gaining market share against established brands, thanks to their efficacy and safety. Valeo Pharma showed significant growth in its second-quarter earnings report. Revenues doubled from $4.5 million for the six months ended April 30, 2021, to $9 million for the six months ended on April 30, 2022.

Valeo Pharma’s drug Redesca is a safe and effective treatment for deep vein thrombosis and pulmonary embolism. With more than eight years of proven safety, and over 150 million patient days treated in Europe alone, Redesca™ is a trusted medication for thinning the blood and preventing blockage of blood vessels.

Redesca™ acts on certain blood elements involved in the coagulation process, making it an ideal treatment option for those with deep vein thrombosis or other clotting disorders. This treatment has captured a 54% share of the Canadian low molecular weight heparin biosimilar market.

Enerzair and Atectura are experiencing significant monthly increases in both the number of prescribing physicians and prescriptions. Enerzair has been proven to be an effective treatment for asthma. The active ingredients in Enerzair – indacaterol, glycopyrronium, and mometasone furoate – work together to help control asthma symptoms and improve patient quality of life.

The Breezhaler device makes it easy for patients to take their medication once daily, and the transparent capsule lets them see that they have taken their medication. With its proven efficacy and convenient administration, Enerzair is a viable option for patients with asthma.

The other asthma medication is Atectura. The medicine treats asthma patients whose asthma does not respond to conventional treatments, such as inhaled corticosteroids and inhaled short acting beta-2 agonists. Atectura Breezhaler is used for regular treatment. It contains active substances indacaterol and mometasone. Studies have shown a patient improvement in symptoms such as breathlessness and wheezing.

However, the company is experiencing growing pains. The company lost $11 million in the six months ended April 30, 2022, compared to $3.6 million in the same period a year earlier. The increase was due to costs associated with creating two new business units and expanding Valeo’s sales, medical, and administrative teams.

Valeo Pharma is confident that its recent investments will result in long-term shareholder value creation and sustainable profitability, despite a net loss reported in its second-quarter results. The expansion was necessary to take advantage of significant market opportunities for Valeo’s products, including Redesca™, Enerzair, and Atectura.

The company’s dedicated commercial teams have been fully deployed and operational throughout the quarter. This team utilization allows Valeo to fully take advantage of its corporate structure and commercial platform. This expansion has allowed Valeo to maximize its market share of its lead products while also actively looking to add strategic assets. Looking ahead, Valeo remains focused on delivering strong results across all of its businesses and markets.

Valeo expects that its investments will pay off in the long term. In the meantime, the company is committed to providing its shareholders with sustainable returns. The company’s strong second-quarter results confirm the commercial progress of its lead brands. Valeo Pharma is well-positioned for continued success in the Canadian pharmaceutical market.




Valeo Pharma’s rocketing growth in sales points to positive cash flow this year

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 derisked, 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.