- 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, QUEBEC , September 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 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 is 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
- 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:
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.
For more information:
Senior Vice-President and Chief Financial Officer
Director, Communications and Investor Relations
514-693-8847 [email protected]