In a recent InvestorIntel interview, Tracy Weslosky interviews Valeo Pharma Inc.’s (TSX: VPH | OTCQB: VPHIF) Founder, CEO and Director Steve Saviuk about Valeo’s first quarter 2022 results. Highlights include Q1-22 revenues of $4.2 million, up 128% over Q1-21 and Q1-22 gross margins of $1.4 million, up 266% over Q1-21. Valeo started trading on the TSX earlier this week.

In this InvestorIntel interview, which may also be viewed on the InvestorIntel YouTube channel (click here to subscribe), Steve Saviuk comments on the positive impact of the Redesca and Enerzair products on Valeo’s revenues and margins, and how he takes its Hesperco product daily. Touching on the public reimbursement process in Canada, Steve provides an update on Valeo’s $25 million convertible debenture financing and increased interest from institutional investors.

To watch the full interview, click here

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.

Bringing new pharmaceutical products to market is a long and expensive process. One Canadian company has found an innovative way to accelerate the process by forming partnerships with pharmaceutical companies that do the research & development (R&D) and manufacturing while they concentrate on the regulatory requirements and then the sales and marketing.

The company is Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF | FSE: VP2) (“Valeo”). Valeo is a specialty pharmaceutical company dedicated to the commercialization of innovative prescription and over-the-counter products in Canada. Valeo focuses on speed to market for their products in the key areas of respiratory, neurology, oncology and other specialty products. 

Valeo Pharma focuses on commercializing products from other companies that have already successfully done the R&D and clinical trials

Source: Valeo Pharma corporate presentation

Redesca™ and Redesca HP™ moving rapidly towards commercialization

Just 2 weeks after Valeo announced the commercial launch of Redesca™ and Redesca HP™ on April 15, Valeo was able to announce a further success for their JV low molecular weight heparin (“LMWH”) biosimilar products. On April 28 Valeo announced that they had entered into a Product Listing Agreement (“PLA”) with the Executive Officer of the Ontario Public Drug Program for the listing of Redesca® and Redesca HP®, its low molecular weight heparin (“LMWH”) biosimilar, on the Ontario Drug Benefit Formulary, effective April 30, 2021.

Valeo told InvestorIntel: “It is the first heparin biosimilar to be listed for reimbursement and Ontario is the largest Canadian market for low molecular weight heparin.”

This is a big deal as it paves the way for Valeo’s Redesca™ and Redesca HP™ heparin biosimilar products to be sold in volume in Ontario, Canada. President and COO of Valeo, Frederic Fasano, explains:

“With Ontario representing 37% of the Canadian market for LMWHs, the listing of Redesca™ on the Ontario public formulary is a key milestone for the Redesca™ commercialization program…..This is welcome news for millions of Canadians who rely on public insurance to access their prescription medications and for the Government of Ontario who will benefit from significant savings resulting from the listing of the first LMWH biosimilar. We anticipate additional provincial coverage will follow.”

The Redesca™ product should potentially prove to be very popular as it is licensed from Shenzhen Techdow Pharmaceuticals, the world’s largest heparin manufacturer. Valeo states: “Redesca™ is a low molecular weight heparin biosimilar. LMWHs are injectable anticoagulant drugs used primarily to treat and prevent deep vein thrombosis and pulmonary embolism. Redesca™ has more than 8 years of proven in-market safety internationally and more than 150 million patient days treated in Europe alone.”

Valeo’s other products

Valeo also has a whole range of other products on the market as shown below. Valeo shows the breakdown of where they forecast their future revenues to come from.

Valeo Pharma’s forecast breakdown of 2025 revenue potential by product

Source: Valeo Pharma corporate presentation

Note: Investors need to remember that forecasts may or may not come to fruition and therefore should not be relied upon as being accurate.

On March 29, Valeo announced that they will begin to commercialize their Enerzair^® Breezhaler^® and Atectura^® Breezhaler^® products, two innovative asthma therapies approved by Health Canada. Almost 4 million Canadians are afflicted with asthma and the Canadian market for asthma medication exceeds $700 million annually. As shown above, these are forecast to be major revenue contributors for Valeo in coming years.

Valeo’s Hesperco™ is an immune support product, as I discussed previously here. Valeo Pharma and Ingenew Pharma are trialing Hesperco™ in the fight against COVID-19. Valeo Pharma’s Hesperco™ capsules are Health Canada approved (for immune support). 

Valeo Pharma’s revenue projections forecast to grow 20x from 2020 to 2025

Source: Valeo Pharma corporate presentation

Note: Investors need to remember that forecasts may or may not come to fruition and therefore should not be relied upon as being accurate.

Closing remarks

Valeo’s states on their website: “Valeo Pharma is focused on bringing innovation to Canadian physicians, providing them with more options to meet the ever increasing needs of their patients.” Looking at Valeo’s rapidly growing list of products they are already well on their way to hitting that goal.

Judging by Valeo’s recent upsized and closed $6.645 million non-brokered private placement, where insiders bought $2.6 million, I would say Valeo is very seriously committed to succeeding in their goals.

Valeo Pharma Inc. trades on a market cap of C$77 million with enormous upside potential if they can achieve their lofty forecasts, noting risks remain high due to the very early stage of commercialization.

Valeo Pharma is a very exciting story and one to watch closely in 2021.

COVID-19 continues to be a huge global problem with global cases now over 112 million. Vaccines are a source of hope but just as valuable are treatments that can help infected COVID-19 patients before they become another horrific statistic.

One specialty pharmaceutical company has a potential anti-COVID-19 product currently in the clinical trial phase. That company is Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF | FSE: VP2) (‘Valeo’).

Valeo has an anti-COVID-19 product currently in a clinical trial known as the Hesperidin Coronavirus Study. Valeo Pharma’s Hesperco™ capsules are Health Canada approved (for immune support) and are at the core of Montreal Heart Institute’s Hesperidin Coronavirus Clinical Trial. HesperCo™ is Valeo’s unique hesperidin formulation. Hesperidin is a flavonoid with powerful antioxidant properties that helps support the immune system, and may potentially help in the fight against COVID-19.

Valeo Pharma and Ingenew Pharma are trialing their Hesperco™ flavonoid product in the fight against COVID-19

Valeo states: “Hesperidin interferes/ inhibits 2 key proteins of SARS-CoV-2 necessary for entry and infection of cells, suggesting that hesperidin may disrupt the replication rate of the virus and enable infected patients to build natural immunity. Hesperidin’s safety profile and immune-modulatory activity make it a highly promising molecule to intervene at various stages of the COVID-19 infection process……hesperidin, the medicinal ingredient contained in HESPERCO™ capsules, and its efficacy against other coronavirus strains are well documented in scientific literature….”

Note: Bold emphasis by the author.

‘Inhibiting COVID-19 entry into our cells’ and ‘boosting immunity’. Wow! This could potentially be a game-changer if successful. With the world currently at 112,654,202 confirmed COVID-19 cases and 2,496,749 COVID-19 deaths (as of February 24, 2021), a product that can inhibit COVID-19 while at the same time boosting our immunity would be an incredible breakthrough.

Valeo’s HESPERCO™ development partner is Ingenew Pharma. Ingenew’s President & CEO stated: “Although hesperidin can be found in lower concentration in citrus fruits or some natural health products, a much higher hesperidin concentration, such as the one found in Hesperco™, is required to achieve therapeutic benefits…With its well-documented anti-inflammatory and anti-oxidant activity, hesperidin may also provide further protection to the infected subjects by reducing the COVID-19-induced cytokine storm (severe inflammatory response) observed in severe cases.”

Valeo Pharma is focusing on specialty products to fight neurodegenerative diseases, cancers, pain, and maybe COVID-19

About Valeo Pharma Inc.

Valeo’s business plan is to become a leading Canadian-focused specialty pharmaceutical company and be the partner of choice for international companies wishing to enter the Canadian market. Valeo’s focus is mostly on specialty areas such as neurodegenerative diseases (MS, Parkinson’s, and Schizophrenia), oncology (cancer) and supportive care/pain management, and hospital specialty products.

Valeo partners with pharmaceutical companies that have expertise in research & development and manufacturing while Valeo concentrates on the regulatory requirements to get a drug approved in Canada and then focuses on marketing the product. Valeo state: “Our focus is getting the product on the market, and we have all the capabilities in-house to register and commercialize innovative pharmaceuticals in Canada.”

Valeo currently has 10 products in their portfolio with another 3 in the pipeline.

Valeo’s revenue is forecast to triple from FY2020 revenue of C$8.0 million to a forecast FY2021 revenue of C$24.0 million.

Closing remarks

Valeo Pharma Inc. trades on a market cap of C$68 million which seems rather small when we look at much larger pharmaceutical companies such as Pfizer Inc. on a market cap of US$188 billion. Sure they are not comparable companies in terms of current products, revenues etc; but it does highlight the potential size to which the most successful pharmaceutical companies can grow. If we compare to the successful natural vitamin companies such as Blackmores, it trades on a market cap of A$1.53 billion.

Valeo’s strategy to partner with other product developers means they can reduce R&D expenses, time to market, and focus on marketing & sales. This is a quicker and smarter way to achieve revenues. Valeo’s stock is up 128% over the past year so it certainly looks like their strategy is working.

• Valeo Pharma’s Steve Saviuk on Hesperidin and reducing the risk of securing COVID-19 (video)

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

Most investors know that the pharmaceutical industry is a huge and mostly very profitable industry. What they may not know is that it is highly competitive making it hard for new players to break into the sector. One way to do that is to have a specialty focus; another is to bring a new drug to market at the right time. Right now immune support products are a hot sector as coronavirus (COVID-19) continues to ravage the world. A

Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF) (‘Valeo’) has a specialty pharmaceuticals focus and their newly launched immune support product HesperCo™ looks like being a possible winner as we all look to boost our immune systems to prevent or fight COVID-19. HesperCo™ is Valeo’s unique hesperidin formulation. Natural product hesperidin is a flavonoid with powerful antioxidant properties that help support the immune system.

In a September 2020 news release Valeo stated: “We have high expectations for HesperCo™, which will be launched nationally in the coming weeks, as the immune support it provides is needed in the current healthcare environment.” Since this press release HesperCo™ has been launched.

Valeo Pharma’s latest product HesperCo™ is an immune support medicine that may potentially prove useful in the fight against COVID-19

Source

Other new Valeo products that have been launched recently – Yondelis, Ametop Gel, Ethacrynate Sodium and soon Amikacin & Redesca

• Yondelis – An anti-neoplastic (anti-cancer) agent that aims to prevent, inhibit or halt the development of a neoplasm (cancerous growth). Clearly this is a hugely needed and important area.
  
• Ametop Gel – A topical analgesic used for local anaesthetic prior to venepuncture.
• Ethacrynate Sodium – A saluretic-diuretic agent that is useful to support Nephrotic Syndrome (a kidney disease that causes patients to pass too much protein in their urine). Commercialization has just begun in the U.S.
• Amikacin – A specialty hospital antibiotic. Valeo has recently received Health Canada approval with commercialization to start in the first half of 2021.
• Redesca and Redesca HP – Valeo has just announced yesterday that they received Health Canada approval for Redesca and Redesca HP (low molecular weight heparin biosimilars). Low molecular weight heparin is increasingly used to prevent serious COVID-19 complications such as thrombosis (blood clots) and pulmonary embolism. Valeo says that commercial launch of Redesca and Redesca HP will impact first half 2021 revenue and is forecast to achieve $30 million annual peak sales.

More about Valeo Pharma

Valeo’s strategy is to focus on specialty areas such as neurodegenerative diseases, oncology, and hospital specialty products. Valeo is focused on those therapeutic fields where a relatively small number of general practitioners or specialist physicians account for the majority of prescriptions written. This can be a more effective strategy to gain success, especially for smaller pharma companies.

Valeo Pharma is driven by the desire to become a leading Canadian focused specialty pharmaceutical company and to be the partner of choice for international companies wishing to enter the Canadian market.

Valeo had a productive Q3, 2020 with 4 new products added to their commercial pipeline. Q3 net revenues were C$1.5 million and YTD 2020 net revenues were C$5.3 million.

Valeo Pharma’s product portfolio and product pipeline

Source

Valeo Pharma’s revenue is forecast to grow very strongly through to 2022

Source: 4-traders

Closing remarks

Specialty pharma in the areas of infectious disease (think COVID-19), oncology (cancer), neuro-degenerative diseases (think nerve diseases), and hospital specialty products all look to be areas of strong future demand.

Valeo Pharma is focusing on these high growth specialty areas in Canada. As a result of past products and several recent new product launches Valeo’s revenue is forecast to increase sharply in the next 2 years. The current market cap is C$74 million.