- Strategy to acquire, license, and commercialize high-quality products
- Experienced management team with relationships with key industry leaders
- A large product portfolio
What Valeo Pharma does:
Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF) (FRA:VP2), based in Kirkland, Quebec, was founded in 2003 and aims to be a leading Canadian specialty pharma group.
Initially, it specialized in dermatology but divested its skin portfolio in 2014. It is now focused on the commercialization of innovative prescription products in Canada, particularly in respiratory, neurology, oncology, and hospital specialty products.
Through acquisitions, in-licensing and selective product development, the company has brought over 20 products to the market.
Its experienced management has a proven track record of successfully sourcing, developing, and commercializing drugs in a variety of therapeutic areas at all stages of the life cycle in Canada. The firm also aims to be the partner of choice for international companies wishing to enter the Canadian market.
How is it doing:
On April 15, 2021, Valeo announced it had started commercial shipments across Canada of Redesca and Redesca HP, its low molecular weight heparin (LMWH) biosimilar.
LMWHs are injectable anticoagulant drugs used primarily to treat and prevent deep vein thrombosis and pulmonary embolism.
And on June 22, the company revealed it had now commercially launched its two Health Canada-approved asthma drugs, Enerzair Breezhaler and Atectura Breezhaler, across the country. The rollout should immediately impact its financial performance and accelerate it in fiscal quarters to come.
The company had earlier announced that it had struck a deal with Novartis Pharmaceuticals to commercialize the two therapies.
Under the agreement, Valeo will be responsible for medical and commercial activities for Enerzair Breezhaler and Atectura Breezhaler for an initial eight years, positioning it as one of the leading Canadian respiratory companies.
And on June 30, Valeo reported record revenue in its second quarter, thanks to new product launches, and said it expected the strong momentum to continue into the third quarter.
For the three months to April 30, revenue came in at C$2.65 million, up 27% from the C$2.1 million seen in the same quarter a year earlier, and up 42% from its first fiscal quarter of 2021.
Valeo noted that the products launched over the past year represented 25% of its 2Q net revenues and included revenues from Yondelis, Ametop Gel and anticoagulant Redesca, which was launched in the final weeks of the quarter but still generated "meaningful revenues."
Also in the 2Q, the company upsized and closed a C$6.645 million private placing of non-convertible debenture units, issuing 11.5 million units at C$1.00 each for gross proceeds of C$11.5 million, including the full exercise of the over-allotment option.
The net loss for the 2Q came in at C$1.9 million, up from a loss of C$0.9 million for the quarter to April 30, 2020.
The increase was put down to increased costs as Valeo implemented its new commercial structure to expand its commercial pipeline including the three transformative products - Redesca and Enerzair Breezhaler and Atectura Breezhaler.
The results were also impacted by share-based compensation expenses as Valeo added more senior staff required to position Valeo for revenue growth in 2021 and beyond, it had said.
In April this year, Valeo Pharma revealed that it has 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 on the Ontario Drug Benefit Formulary with effect from April 30.
The same month, the company said it had completed its negotiations and entered into a letter of intent (LOI) with the pan-Canadian Pharmaceutical Alliance (pCPA) regarding Redesca and Redesca HP.
Established in August 2010, Valeo noted that the pan-Canadian Pharmaceutical Alliance conducts joint provincial/territorial/federal negotiations for brand name and generic drugs in Canada to achieve greater value for publicly funded drug programs and patients through the use of the combined negotiating power of participating jurisdictions.
Finally, in January this year, Valeo named seasoned executive Frederic Fasano as its president and chief operating officer (COO), a newly created role.
Fasano has over 25 years of experience in managing strategic affiliates in Canada, Europe, and Latin America, and before joining Valeo, he was president and CEO of Servier Canada, a fully integrated affiliate of Servier Group - the independent, international, and independent pharma group.
Inflection points:
- Next set of financials
- More products commercialized
- More on sales efforts
What the boss says:
In the statement accompanying the 2Q numbers, CEO Steve Saviuk told investors: "Our record second quarter revenues saw growth coming from our existing portfolio along with the first indication of the material impact that our three important product launches will bring.
"Redesca was launched at the end of the second quarter and has quickly become our best-selling product with sales expected to accelerate for quarters to come. Subsequent to the quarter end, we launched Enerzair Breezhaler and Atectura Breezhaler, two innovative asthma therapies.
"As a result of these launches, we expect third quarter revenues to expand by more than 50% over our second quarter.
"Public and Private reimbursement coverage for Redesca, Enerzair and Atectura is on track and is a key component to ensure patients have access to these important medications.
"We are making significant additions to our corporate and commercial structure in order to accelerate our growth and properly support the potential of our world class products. With senior talent joining our leadership team and the expansion of our medical and field commercial teams, Valeo is fast positioning itself as a Canadian leader in our defined therapeutic areas."
Contact the author at giles@proactiveinvestors.com