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 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.

In a new InvestorIntel interview Tracy Weslosky speaks with Steve Saviuk, CEO of Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF) about Valeo’s recent news release on the use of its Hesperco™ Capsules at the Core of Montreal Heart Institute’s Hesperidin Coronavirus Clinical Trial.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Steve went on to say “Hesperidin is a natural product with very good safety profile and potential efficacy.” The Montreal Heart Institute is a leading institute that has done a number of trials. Steve commented that for them to be interested in Hesperidin is testament to the many hours of research “…demonstrating that Hesperidin could have a very positive effect on patients that are symptomatic with COVID-19.”

Steve also provided an update on the commercial launch of Redesca™ which is a biosimilar used as a blood thinner. He said that the drug has “great market potential” and has recently received a positive recommendation for public reimbursement in Quebec. The company expects to launch the product in early May. “Our revenues are slated to almost triple in the current fiscal year which ends October 21^st,” Steve commented.

To watch the full interview, click here

About Valeo Pharma

Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Neurodegenerative Diseases, Oncology and Hospital Specialty Products. Headquartered in Kirkland, Quebec Valeo Pharma has all the required capabilities and the full infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.

To know more about Valeo Pharma Inc., click here