- Seventh consecutive quarter of revenue growth at
$14.1 million in Q3-23, up 132% over
Q3-22.
- Physicians prescribing Enerzair and Atectura reached 2,503
at the end of Q3-23, representing a 23% increase from the prior
quarter and a 221% rise year-over-year
- Total Enerzair and Atectura prescriptions for the 12 months
ending July 31, 2023 exceeded 56,000,
up 310% over July 31, 2022
- $4.5 million financing
completed with Investissement Québec and insiders each investing
$2.0 million
MONTREAL, Sept. 13,
2023 /CNW/ - Valeo Pharma Inc. (TSX: VPH) (OTCQB:
VPHIF) (FSE: VP2) ("Valeo" or the "Company"), a
Canadian pharmaceutical company, today reported its financial
results for the third quarter ended July 31,
2023.
Third quarter 2023 Results & Highlights:
- Record quarterly revenues of $14.1
million in Q3-23, compared to $6.1
million in Q3-22, up 132%, with Enerzair and Atecura up
234%.
- Record adjusted gross profit of $5.1
million in Q3-23 compared to $2.4
million in Q3-22, up 106%
- Q3-23 net loss of $5.8 million
compared to $5.4 million in
Q3-22,
- Q3-23 adjusted EBITDA loss of $2.5
million compared to a $3.5
million loss in Q3-22, a 28% reduction
- Enerzair and Atectura prescribing physicians reached 2,503 at
the end of Q3-23, a 23% growth for the quarter and 221% increase
year-over-year
- Total of 18,384 Enerzair and Atectura prescriptions during
Q3-23, up 163% over Q3-22
- Total of 56,021 Enerzair and Atectura prescriptions over the
last 12 months, up 310% year-over-year.
"Our record third quarter revenue and year to date results
demonstrate our ability to generate sequential quarterly growth.
Our key innovative products are well positioned in their respective
market segments and we expect their organic growth trend to
continue for many quarters to come", said Steve Saviuk, Chief Executive Officer. "Enerzair
and Atectura are leading the way for us confirming their strong
position as important therapies in the large Canadian asthma
market. Growth in the number of prescribing physicians and total
prescriptions has been increasing quarter over quarter at an
accelerating pace and we believe they are only in the
beginning stages of demonstrating their true market potential
".
Commenting on the record third quarter 2023 results,
Luc Mainville, Senior Vice-President
and Chief Financial Officer said, "Our quarterly and year-to-date
results when compared to previous year periods show that we are on
the right track. Our Revenues, margins and EBITDA results for Q3-23
have been impacted by an increase in revenue provisions related to
Group Purchasing Organization and Product Listing Agreement
coverage on our basket of products while our operating expense
included high level of sample costs compared to prior quarters.
With projected revenues and margins growth and continued
strict control over OPEX, we remain focus on achieving EBITDA
profitability and are taking commercial and operational initiatives
to achieve this objective. Subsequent to the quarter we have also
strengthened our working capital by completing a $4.5 million private placement and debt
financing, and are now better positioned to pursue our ambitious
growth objectives".
Third Quarter 2023 Financial Results
- Record revenues were $14.1
million for the quarter ended July
31, 2023 compared to $6.1
million for the quarter ended July
31, 2022 representing a 132% increase. The increase over the
previous comparable period is mainly due to the addition of
Xiidra®, Simbrinza® and Allerject®, as well as continued growth and
market share gains of our other core products, Redesca®, Enerzair®
and Atectura®;
- 20% organic revenue growth in Q3-23 compared to Q3-22,
including 234% combined revenue growth from Enerzair® and
Atectura®;
- Adjusted gross profit was $5.1
million for the quarter ended July
31, 2023 compared to $2.4
million for the quarter ended July
31, 2022, representing a 106% increase. The increase over
the previous comparable period is mainly due to the significant
increase in our revenues;
- Net loss was $5.8 million for the
quarter ended July 31, 2023 compared
to $5.4 million for the quarter ended
July 31, 2022. The 8% increase in net
loss in Q3-23 was due to the increase in financial and sales and
marketing expenses, which was partly offset by the significant
increase of our gross profit; and
- Adjusted EBITDA loss was $2.5
million for the quarter ended July
31, 2023 compared to $3.5
million for the quarter ended July
31, 2022, a 28% improvement.
Year to Date 2023 Financial Results
- Record YTD Revenues of $40.8
million for the nine months ended July 31, 2023 compared to $15.1 million for the nine months ended
July 31, 2022 representing a 171%
increase;
- Adjusted gross profit was $14.3
million for the nine months ended July 31, 2023 up 148% compared to $5.8 million for the nine months ended
July 31, 2022;
- Net loss of $18.6million for the
nine months ended July 31, 2023
compared to $16.4 million for the
nine months ended July 31, 2022. The
increase in net loss is mainly due to the increase in financial and
sales and marketing expenses, which was partly offset by the
significant increase of our gross profit; and
- Adjusted EBITDA loss of $6.4
million for the nine months ended July 31, 2023 compared to an adjusted EBITDA loss
of $11.6 million for the nine months
ended July 31, 2022, a 45%
improvement.
Third Quarter 2023 Highlights
- In July 2023, the Company noted
from a news release issued by Novartis on June 30, 2023 that Novartis agreed to sell
XIIDRA®, a prescription eye drop solution indicated for the
treatment of the signs and symptoms of dry eye disease, as well as
several other ophthalmology products to Bausch + Lomb Corporation.
SIMBRINZA® is not part of the products that are being divested by
Novartis. The sale is expected to close before the end of the
year;
- In June 2023, Ms. Tamara Close and Mr. Didier Leconte have joined the Company's Board
of Directors. Following the appointment of Ms. Close and Mr.
Leconte, Valeo's Board of Directors is now comprised of 8
Directors, 5 of whom are independent; and
- In May 2023, following the U.S.
Food and Drug Administration (FDA) decision to decline Veru's
request for Emergency Use Authorization (EUA) for sabizabulin, the
Company and Veru Inc. mutually agreed to terminate their commercial
services agreement for sabizabulin for COVID-19 in Canada originally entered into on September 14, 2022.
Third Quarter 2023 Subsequent Events
- In August 2023, the Company
closed a $4.5 million financing
comprised of a non-brokered private placement offering of
13,999,997 units of the Company at a price of $0.28 per Unit for gross proceeds of $3.92 million, including the participation
of Investissement Québec for $2.0
million and $1.421 million
from Insiders. In addition, the Company secured a loan agreement
with a related party for a principal amount of $580,000 bearing annual interest at a rate of
12%.
Third Quarter 2023 Webcast and Conference Call
Valeo will host a conference call to discuss its third quarter
2023 results and highlights on Thursday
September 14, 2023 at 8.30 am
(ET). The telephone numbers to access the conference call
are 416-764-8659 and 1-888-664-6392. An audio replay of the call
will be available. The numbers to access the audio replay are
416-764-8677 and 1-888-390-0541 using the following access
code (187641 #).
A live audio webcast of the conference call will be available
via:
https://app.webinar.net/Kz8w4Eg367j
Financial Statements and MD&A
Valeo Pharma's financial statements and Management's Discussion
and Analysis for the three month and nine-month periods ended
July 31, 2023 are available on SEDAR
at www.sedar.com.
About Valeo Pharma
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
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. For more
information, please visit www.valeopharma.com and follow us on
LinkedIn and Twitter.
Forward Looking Statements
This press release contains forward-looking statements about
Valeo's objectives, strategies and businesses that involve risks
and uncertainties. These statements are "forward-looking" because
they are based on our current expectations about the markets we
operate in and on various estimates and assumptions. Actual events
or results may differ materially from those anticipated in these
forward-looking statements if known or unknown risks affect our
business, or if our estimates or assumptions turn out to be
inaccurate.
SOURCE Valeo Pharma Inc.