XPhyto Therapeutics is looking to hit a home run with their innovative medical products and therapies

New therapies and diagnostics in the pharmaceutical and medical industries can be a very lucrative area. To be successful a company has to outmaneuver the large established drug companies, or focus on niche areas. Today’s company is working on doing just that with their focus on disruptive and innovative solutions in the medical and pharmaceutical space. Two areas they are progressing rapidly are rapid COVID-19 PCR testing and psychedelics therapies for neurodegenerative and other diseases.

XPhyto Therapeutics Corp. (CSE: XPHY | OTCQB: XPHYF | FSE: 4XT) (‘XPhyto’) is a bioscience accelerator focused on next-generation drug delivery, diagnostic, and new active pharmaceutical ingredient investment opportunities. XPhyto is on the cusp of two major commercial milestones related to their rapid point-of-care COVID-19 PCR test system, with expected ISO certification and CE-IVD approval pending.

XPhyto’s Covid-ID Lab 25 minute COVID-19 PCR Test

On February 24, 2021 XPhyto announced their first order for their 25-minute COVID-19 RT-PCR tests, from their exclusive diagnostic development partner, 3a-diagnostics GmbH (‘3a’). The order was for 9,600 individual tests with delivery of the first order expected by mid-March 2021. These tests will be primarily used to supply prospective distribution partners and licensees and their respective government regulators with test samples for review and evaluation. XPhyto’s PCR test advantage over others is its rapid speed (25 minute results) and portability, as well as ease of use. They are ideal to be used for pop-up testing sites in any location. They can be done as either a nasal swab test or an oral swab test making it easy to administer.

XPhyto CEO Hugh Rogers stated:

“We are confident that Covid-ID Lab, as a 25-minute PCR test with minimal technical and personnel requirements, will be a stand-out product in the COVID-19 test market.”

If this proves to be correct we could potentially expect large product orders to start rolling in during 2021. Subject to the various regulatory approvals being successful, XPhyto expects to hold a European sales launch in April 2021. XPhyto is also currently in discussions with potential distribution and wholesale partners in Europe and the Middle East.

Assuming success in the above steps, XPhyto should be looking at potential revenues beginning in 2021.

XPhyto’s Point-of-Care rapid and portable diagnostic PCR test for COVID-19


XPhyto’s psychedelics therapies for neurodegenerative diseases

On February 3, 2021 XPhyto announced a Psychedelic Pharmaceutical Production Agreement with Applied Pharmaceutical Innovation (‘Applied’) for the synthesis of pharmaceutical grade psychedelic compounds and the parallel development of the standard operating procedures necessary to obtain regulatory approval for the respective commercial production process. Applied is a not-for-profit institution at the University of Alberta created to support translational drug development for industry and innovators. This adds to XPhyto’s 2020 development agreement for the industrial production of psilocybin with a leading German university, as well as the addition of mescaline production. XPhyto plans to expand its psychedelic programs in 2021, including scalable production of pharmaceutical grade compounds, drug formulations, and clinical evaluation.

XPhyto state: “Psychedelic compounds are a highly promising new class of drugs with strong potential for the treatment of mental health related medical conditions such as depression, anxiety, addiction, and trauma-related stress disorder.” They are also said to be useful for pain management and palliative care. Psychedelics are legal in the Netherlands and recently Canada approved 17 healthcare professionals to possess and use the psychedelic active ingredient psilocybin to conduct professional training in psilocybin therapy. Data Bridge Market Research forecasts that the global psychedelics market will grow from USD 2.077B in 2019 to USD 6.859B by 2027.

Other areas for XPhyto

Also of interest is that XPhyto and 3a are developing a portfolio of oral biosensor screening tests for detection of bacterial and viral infectious diseases. Additional pandemic-focused biosensors are in development. XPhyto is planning the commercial launch of its first biosensor product in the second half of 2021. This looks to be a very exciting area with huge potential.

The other area XPhyto is active in is innovative drug delivery methods such as transdermal patches and oral dissolvable films designed for efficient and affordable delivery of approved neurological medications. Again another innovative area where there is a significant need.

Closing remarks

Innovation in the medical world can have an exponential impact on smaller companies if they have a big success. XPhyto has a reasonable chance to hit a home run – Perhaps from their leading portable 25 minute COVID-19 PCR test, from psychedelics therapies, from their oral biosensor products or from their innovative drug delivery products.

XPhyto Therapeutics Corp. certainly has a lot going on and trades on a market cap of C$171M.

Revenue is forecast to triple, Valeo Pharma has 10 products in their portfolio

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 on a significant upswing with recent Health Canada approvals

In a new InvestorIntel interview Peter Clausi speaks with Steve Saviuk, CEO of Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF), about receiving Health Canada’s approval for its anti-coagulant Redesca™ and the use of some its products in battling coronavirus.

“We are in the middle of a significant upswing and growth trajectory,” Steve told Peter, with Valeo’s stock up over 300% in 12 months. Founded in 2003, Valeo Pharma is a pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on neurodegenerative diseases, oncology and hospital specialty products.

Steve discusses Health Canada’s recent approval of Redesca™ and Redesca Hp™ low molecular weight heparin (LMWH) biosimilars, which belong to a class of anti-coagulant drugs very much in demand and are now increasingly used as a first line of defense tool in the fight against the symptoms of COVID-19. Steve added that the Canadian LMWH market is in excess of $200 million annually and the Valeo anticipates being able to capture a significant market share with its growing portfolio of hospital drug products.

As to future growth and valuation, Steve quoted Wayne Gretzky: “It’s not where the puck is, it’s where the puck is going, and it’s the same thing with valuation. You have to look at where we’re going to be in a year or two, and that’s what is truly exciting.”

To watch the full interview, click here.

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