- Sixth consecutive quarter of revenue growth at $13.6 million in Q2-23, up 184% over Q2-22.
- Sixth consecutive quarter of adjusted EBITDA loss reduction at $1.7 million, a 53% improvement over Q2-22, and down 24% compared to Q1-23
- Physicians prescribing Enerzair and Atectura reached 2,036 at the end of Q2-23, representing 29% growth from the prior quarter and a 355% increase year-over-year
- Total prescriptions for the 12 months ending April 30, 2023 exceeded 45,000, up 654% over April 30, 2022
MONTREAL, QUEBEC , June 13, 2023 – Valeo Pharma Inc. (TSX:VPH, OTCQB: VPHIF, FSE: VP2) (“Valeo” or the “Company”), a Canadian pharmaceutical company, today reported its financial results for the second quarter ended April 30, 2023.
Second quarter 2023 Results & Highlights:
- Record quarterly revenues of $13.6 million in Q2-23, compared to $4.8 million in Q2-22, up 184%, with Enerzair and Atecura up 271%.
- Record adjusted gross profit of $5.0 million in Q2-23 compared to $1.8 million in Q2-22, up 181%
- Q2-23 net loss of $6.5 million compared to $5.1 million in Q2-22,
- Q2-23 adjusted EBITDA loss of $1.7 million compared to a $3.6 million loss in Q2-22, a 53% reduction
- Enerzair and Atectura prescribing physicians reached 2,036 at the end of Q2-23, a 29% growth for the quarter and 355% increase year-over-year
- Total of 14,765 Enerzair and Atectura prescriptions during Q2-23, up 291% over Q2-22
- Total of 45,031 Enerzair and Atectura prescriptions over the last 12 months, up 654% year-over-year.
“Our second quarter financial and commercial performance was robust and reflects our strong product portfolio and dynamic commercial team”, said Steve Saviuk, Valeo’s Chief Executive Officer. “Enerzair and Atectura’s revenue and prescription growth is reflecting broadening adoption. As we are still in the early stages of their commercialization, we expect this trend to continue to gain traction in the coming quarters. Organic growth for our product portfolio, as well as the important contribution of our new Ophthalmology business unit, are key elements in growing our overall revenues and sharply improving our financial performance. This trend will continue in quarters to come as we progress towards profitability”.
Commenting on the record second quarter 2023 results, Luc Mainville, Senior Vice-President and Chief Financial Officer said, “Q2-23 delivered yet again another sequential financial performance improvement. The combination of growing revenues, product margins and strict control over OPEX has contributed to reduce our quarterly Adjusted EBITDA loss for a 6th consecutive quarter. We anticipate this trend to continue for the coming quarters and remain focused on achieving break-even status as rapidly as possible. After significant investments in our working capital to support our growth and the addition of new commercial assets earlier in fiscal year 2023, our cash position remained strong at the end of Q2-23 at $10.1 million, down $0.8 million compared to the prior quarter.”
Second Quarter 2023 Financial Results
- Record revenues were $13.6 million for the quarter ended April 30, 2023 compared to $4.8 million for the quarter ended April 30, 2022 representing a 184% 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®;
- 39% organic revenue growth in Q2-23 compared to Q2-22, including 271% combined revenue growth from Enerzair® and Atectura®;
- Adjusted gross profit was $5.0 million for the quarter ended April 30, 2023 compared to $1.8 million for the quarter ended April 30 2022, representing a 181% increase. The increase over the previous comparable period is mainly due to the significant increase in our revenues;
- Net loss was $6.5 million for the quarter ended April 30, 2023 compared to $5.1million for the quarter ended April 30, 2022. The 27% increase in net loss in Q2-23 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 $1.7 million for the quarter ended April 30, 2023 compared to $3.6 million for the quarter ended April 30, 2022, a 53% improvement.
Year to Date 2023 Financial Results
- Record YTD Revenues of $26.7 million for the six months ended April 30, 2023 compared to $9.0 million for the six months ended April 30, 2022 representing a 197% increase;
- Adjusted gross profit was $9.3 million for the six months ended April 30, 2023 up 180% compared to $3.3 million for the six months ended April 30, 2022;
- Net loss of $12.8 million for the six months ended April 30, 2023 compared to $11.1 million for the six months ended April 30, 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 $3.9 million for the six months ended April 30, 2023 compared to an adjusted EBITDA loss of $8.1 million for the six months ended April 30, 2022, a 52% improvement.
- Adjusted gross profit was $9.3 million for the six months ended April 30, 2023 up 180% compared to $3.3 million for the six months ended April 30, 2022;
Second Quarter 2023 Highlights
- In April 2023, the Company held its annual meeting of shareholders with the following Directors elected, Steve Saviuk, Richard MacKay, Marc Léger, Maureen Brennan, Michel Trudeau and Stuart Fowler. PricewaterhouseCoopers LLP was also appointed as the auditor for the Company;
- In March 2023, Valeo granted 1,250,000 Options to executives, the whole in accordance with the Company’s Share Option Plan. The Options have an exercise price of $0.66 per Class A share of the Company, vest equally over two years and have a seven year term;
- In February and March 2023, convertible debentures issued in February 2020 and representing $0.7 million in principal and interest were converted into 1,671,880 shares of the Corporation; and
- In February 2023, the Company announced that Onstryv® (safinamide) for the treatment of patients suffering from Parkinson’s disease, was now listed for public reimbursement on the Public Prescription Drug Insurance Plan of the Quebec Régie de l’assurance maladie du Québec (“RAMQ”), effective February 1, 2023.
Second Quarter 2023 Subsequent Events
- 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.
Second Quarter 2023 Webcast and Conference Call
Valeo will host a conference call to discuss its second quarter 2023 results and highlights on Wednesday June 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 (029860 #).
A live audio webcast of the conference call will be available via:
Financial Statements and MD&A
Valeo Pharma’s financial statements and Management’s Discussion and Analysis for the three month and six-month periods ended April 30, 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.
For more information:
Steve Saviuk
CEO
514-693-8830
or
Luc Mainville
Senior Vice-President and Chief Financial Officer
514-693-8854
or
Frederic Dumais
Director, Communications and Investor Relations
514-261-4735