Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) has reported record financial results for the fourth quarter and fiscal 2022 as it expanded its product portfolio and benefitted from strong performances from its existing therapies.
The company grew revenue by 274% to $12.7 million in the three months to October 31, 2022, lifting its full-year revenue by 105% to $27.7 million.
It also reported record adjusted gross profit of $3.6 million for the quarter, a 320% improvement, taking the full-year number 109% higher to $9.4 million. It ended fiscal 2022 with cash and liquidities of $22.5 million.
"2022 saw Valeo take a major step forward in becoming a leading Canadian-owned pharmaceutical company,” Valeo CEO Steve Saviuk said in a statement. “We generated record annual revenues, doubling our 2021 performance, and expanded our product portfolio by acquiring rights to three growth assets XIIDRA, SIMBRINZA and ALLERJECT.”
READ: Valeo Pharma says Health Canada has accepted for review Veru’s New Drug Submission for sabizabulin
"With the addition of these new products and the continued strong performance of our asthma therapies, Enerzair and Atectura, and anticoagulant Redesca, we anticipate all our business units to continue producing strong revenue and margin growth in 2023 as we forecast delivering record quarterly revenues again in the first quarter of 2023,” Saviuk added.
Valeo reported a 4Q net loss of $9.3 million, up from $7.7 million in the corresponding quarter a year earlier, mainly due to an increase in financial expenses, non-recurrent impairment charges and write-offs which more than offset the significant expansion of its operating profit. Its full-year net loss increased to $25.7 million from $14.2 million in fiscal 2021.
“The contribution of new products and the continued growth of our core assets during fiscal year 2022 has generated significant revenue growth for Valeo,” commented Valeo’s senior vice president and chief financial officer Luc Mainville.
“The investments we have made during prior years in our corporate and commercial infrastructure is starting to pay off by providing considerable operating leverage which will help pave the way to Valeo's profitability as our commercial portfolio reaches its full potential," Mainville added.
2022 achievements include:
- A commercial services agreement with Veru Inc. for sabizabulin in Canada, a novel dual antiviral and anti-inflammatory agent being targeted for the treatment of hospitalized moderate-severe COVID-19 patients at high risk for acute respiratory distress syndrome (ARDS) and death;
- The appointment of Kyle Steiger to the role of senior vice president and chief commercial officer and Jean-François Fournier as its new business unit head for ophthalmology;
- Closing a non-dilutive US$30 million secured term loan from Sagard Healthcare Partners;
- A license, supply, and commercialization agreement with Kaléo Inc. for the Canadian rights to ALLERJECT, (epinephrine injection, USP) auto-injector for the treatment of serious allergic reactions;
- A commercialization and supply agreement with Novartis Pharmaceuticals Canada Inc. for the Canadian commercialization by Valeo of two innovative ophthalmic therapies, XIIDRA and SIMBRINZA;
- Valeo's 12% convertible unsecured subordinated debentures, issued under a $15 million bought deal private placement closed in December 2021, began trading on the TSX under the symbol VPH.DB;
- Final approval for the listing of its common shares and warrants on the Toronto Stock Exchange with an effective trading date of March 29, 2022;
- A product listing agreement with the British Columbia Minister of Health, for the listing and public reimbursement of Redesca and Redesca HP, its low molecular weight heparin biosimilar;
- Enerzair Breezehaler and Atectura Breezhaler were accepted for public reimbursement by the Saskatchewan Drug Plan, the Prince Edward Island Pharmacare Drug Plan, the Ontario Drug Benefit program, the Manitoba Pharmacare Program, the New Brunswick Drug plan, and the NIHB and VAC federal programs; and
- The company closed its bought deal private placement of $15 million through a syndicate of underwriters led by Desjardins Capital Markets and a concurrent $10 million private placement of convertible unsecured debentures issued on the same terms with Investissement Québec resulting in gross proceed from the offering and concurrent private placement of $25 million to the company.
Subsequent events include:
- On January 27, 2023, the company granted 26,786 restricted stock units as well as 395,850 deferred stock units to members of management under its equity incentive plan;
- In January 2023, Health Canada accepted for review Veru's new drug submission for sabizabulin for COVID-19. Sabizabulin is a novel dual antiviral and anti-inflammatory agent being developed for the treatment of hospitalized moderate to severe COVID-19 adult patients at high risk for acute respiratory distress syndrome (ARDS) and death; and
- In November 2022, the company announced the resignation of Frederic Fasano as president and chief operating officer.
Valeo Pharma is a fast-growing Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory/Allergy, Ophthalmology and Hospital Specialty Products.
Headquartered in Kirkland, Quebec, the company has all the necessary capabilities and a complete infrastructure to register and manage its growing product portfolio through all stages of commercialization.
Contact the author at stephen.gunnion@proactiveinvestors.com