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)

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

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.

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.”

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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.

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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.

Are we starting to see the beginning of the end of COVID’s reign of terror over humanity? I certainly hope so. But beyond my wishful thinking, you are starting to see many jurisdictions beginning to remove some of the more restrictive pandemic control measures in an effort to head down the path towards normalcy. Assuming policymakers are making informed decisions (a debate that I definitely won’t get dragged into) and that we are shifting into more of an endemic versus a pandemic approach to COVID, then there are a lot of potential opportunities for investors just waiting to materialize. The obvious, “opening up”, trades are airlines and cruise operators, but there are many other, often smaller, businesses that will finally be able to get out and start drumming up business the old fashion way – face to face. It’s probably impossible to measure the impact that COVID has had on the bottom line of businesses of all shapes and sizes. But fingers crossed that everyone could get back to doing business as usual and perhaps actually meet a forecast or two.

One company that has been plugging away throughout the pandemic, building out its platform for growth including expanding its sales and marketing team, is Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF). 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, the Company has the full capability and complete infrastructure in place to register and properly manage its growing product portfolio through all stages of commercialization. The Company specializes in partnering with pharmaceutical companies that have expertise in research & development and manufacturing while Valeo Pharma concentrates on the regulatory requirements to get a drug approved in Canada and then focuses on marketing the product. The Company benefits from commercializing a drug without the risk and expense of product development.

A great example of what Valeo Pharma brings to the table begins with entering into a commercialization and supply agreement for two asthma therapies with Novartis Pharmaceuticals Canada Inc., a deal that was inked in March, 2021. Under the Agreement, Valeo Pharma is responsible for medical and commercial activities for Enerzair Breezhaler® and Actectura Breezhaler® for an initial 8-year period. By June, 2021, the Company had secured reimbursement authorization for these therapies from private payer health plans covering 80% of privately insured lives in Canada. By the end of June commercialization of the therapies had commenced following product shipments across Canada and the initial deployment of its national respiratory sales force. In October, Valeo Pharma announced an LOI with the pan-Canadian Pharmaceutical Alliance (pCPA) regarding its two innovative asthma therapies whereby pCPA conducts joint provincial/territorial/federal negotiations for brand name and generic drugs in Canada to achieve greater value for publicly funded drug programs. This all led to the most recent announcement, on December 15, 2021, that Quebec and Nova Scotia have joined Alberta on the list of provincial public coverage secured for both asthma medications.

All that work means there are a lot of people out there who now have coverage for these drugs. Where the reduction of pandemic restrictions comes into play is the ability to get out and educate and promote these therapies to all the doctors and pharmacists who prescribe or recommend these medications, so all those with coverage will actually be able to obtain and start using the therapies. The legwork is done, now it’s time to get that revenue machine rolling. And this example is of only 2 of Valeo Pharma’s 8 marketed brands and 4 additional products contributing revenues.

Granted the Company isn’t quite rolling in the green just yet as they recently raised C$25 million via convertible unsecured debentures. But in a vote of confidence, C$10 million came from Investissement Québec, whose mandate is to accompany and support entrepreneurs and leaders who promote the economic development and growth of key sectors of the Québec economy. The Company intends to use the net proceeds of the offering to (i) support commercial efforts related to the recently launched products (Redesca™, Enerzair®, and Atectura®); (ii) reimburse, at maturity, the non-convertible debentures previously issued by the Company and maturing on January 31, 2022, and July 10, 2022; (iii) for working capital and general corporate purposes; and (iv) support an upcoming TSX listing application. Yes, they plan to graduate to the big board in the first half of 2022, with their C$50 million market cap, which could improve exposure and liquidity of the stock. Additionally, the next 6-7 weeks should provide us with year-end and Q1/22 quarterly results to give us insight into the progress being made at Valeo Pharma Inc. Those results will be pivotal for the future of the Company.

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 Therapeutics Hugh Rogers on the fastest and most portable PCR test available (video)

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

Source

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.

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 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.