- Q1-24 revenues of $13.5
million, up 3% over Q1-23
- Q1-24 adjusted EBITDA loss of $2.1
million compared to $2.2
million for Q1-23, down 6%
- Total Enerzair and Atectura prescriptions for the 12 months
ending January 31, 2024, exceeded
78,000, up 130% over the 12 months ending January 31, 2023
MONTREAL, March 14,
2024 /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 first quarter ended January
31, 2024.
First quarter 2024 Results & Highlights:
- Revenues of $13.5 million in
Q1-24 vs $13.1 million in Q1-23 and
$13.1 million in Q4-23, up 3%
respectively
- Adjusted gross profit of $3.9
million in Q1-24 vs $3.9
million in Q1-23 and $2.1
million in Q4-23, down 1% and up 81% respectively
- Q1-24 net loss of $6.9 million vs
$6.2 million in Q1-23 and
$9.2 million in Q4-23, up 10% and
down 26% respectively
- Adjusted EBITDA loss of $2.1
million for Q1-24 vs $2.2
million loss in Q1-23 and $4.5
million in Q4-23, down 6% and 54% respectively
- Enerzair and Atectura prescribing physicians reached 3,472 at
the end of Q1-24, a 17% growth for the quarter and 119% increase
year-over-year.
"Valeo has returned to its revenue growth trend in Q1-2024. Our
respiratory business unit has continued to perform strongly with
asthma product revenues increasing 58% in Q1-2024 vs Q4-2023, this
was offset in part by lower ophthalmology revenues associated to
the winddown of our promotional activities for Xiidra ", said
Steve Saviuk, CEO. "We expect that
our major promoted brands, Enerzair, Simbrinza and Redesca will
provide an increasing share of our revenue growth in the coming
quarters and greater margin contribution. Valeo has embarked on a
number of initiatives as it drives towards positive cashflow with
our previously announced operational cost savings having greater
impact from Q2-24 onwards".
Commenting on the first quarter 2024 results, Pascal Tougas, Valeo's Chief Financial Officer,
said, "Despite the negative impact of further inventory write-offs
endured in Q1-24, our quarterly financial performance is only
starting to demonstrate the benefits associated with the cost
reduction, organizational realignment measures and relentless focus
on execution implemented in late 2023 and in Q1-24. Our operating
margins and adjusted EBITDA loss have started improving with the
bulk of the operating expenses reduction measures benefits expected
to materialize starting in the second quarter and ramping up
sequentially throughout the remainder of 2024.''
First Quarter 2024 Financial
Results
- Revenues were $13.5 million for
the quarter ended January 31, 2024,
compared to $13.1 million for the
quarter ended January 31, 2023,
representing a 3% increase. Valeo revenue growth momentum returning
due to sales uplift generated via promotional activities in
respiratory, Allerject and continued growth from other core
products, such as Redesca, Simbrinza;
- Adjusted gross profit was $3.9
million for the quarter ended January
31, 2024, compared to $3.9
million for the quarter ended January
31, 2023, representing a 1% decrease. The slight decrease
over the previous comparable period is mainly due to the loss of
momentum associated to Xiidra cease of promotion;
- Net loss was $6.9 million for the
quarter ended January 31, 2024,
compared to $6.2 million for the
quarter ended January 31, 2023. The
10% increase in net loss in Q1-24 mainly results from the inventory
write-offs materialized for new product launch; and
- Adjusted EBITDA loss was $2.1
million for the quarter ended January
31, 2024, compared to $2.2
million for the quarter ended January
31, 2023, a 6% improvement.
First Quarter 2024
Highlights
- In November 2023, the Company
announced the undertaking of a series of initiatives to reduce
operating costs and drive operational efficiency as it moves toward
profitability expecting to decrease its operating expenses by more
than $2.0 million, on an annualized
basis, through reorganizing and streamlining its organizational
structure and commercial support activities.
- In November 2023, the Company
announced the appointment of Mr. Pascal
Tougas to the position of Chief Financial Officer; and
- In November 2023, the Company
announced the appointment of Mr. Richard
Lajoie and retirement of Ms. Maureen
C. Brennan from its Board of Directors. Richard Lajoie was President of Bausch Health,
Canada from 2017 to 2021 before
being promoted to President Ortho Dermatologics US based in
New Jersey. Prior to Bausch
Health, Richard spent 12 years with Novartis Pharmaceuticals in
roles of increasing
responsibility.
First Quarter 2024 Subsequent
Events
- In February 2024, the Company
announced the appointment Messrs. Robert
Raich and Charles Bisaillon
to the Company's Board of Directors and that Messrs. Michel Trudeau, Stuart
Fowler, Didier Leconte and
Ms. Tamara Close have all resigned
from its Board of Directors.
- In February 2024, the Company
entered into an amendment of its 7-year Commercialization and
Supply Agreement of XIIDRA® and SIMBRINZA®. As per the
Amendment, Valeo will continue to distribute XIIDRA® for the entire
transition period. The transition period is expected to continue
until approximately Q3-2024. Valeo will continue to commercialize
and promote SIMBRINZA® on an exclusive basis as provided by the
Commercial and Supply Agreement with Novartis. Within 60 days from
the Effective Date of Termination, Valeo will be entitled to a
reimbursement of a residual portion of the upfront fee paid by
Valeo at the time it entered into the Commercialization and Supply
Agreement. The amount to be received as Reimbursement, when
received, will be used for partial repayment of the Secured Term
Loan (the "Facility'') entered into between Valeo and Sagard
Healthcare Royalty Partners, LP ("Sagard") in July 2022.
- In February 2024, the Company
also entered into an agreement with Sagard to provide, among other things, for
accelerated debt repayment of the Facility. Under the Sagard
Amendment, Valeo will be required to make a first repayment of
$10 million by August 31, 2024 and will also have the option to
make an additional repayment of US$5 million under the
Facility, which amount is currently held in a restricted cash
account; and
- On February 23, 2024, the
Corporation entered into an agreement to assign the rights to a
non-core asset for gross proceeds consideration of $1.5 million to be materialized in Q2-2024.
First Quarter 2024 Webcast and
Conference Call
Valeo will host a conference call to discuss its first quarter
2024 results and highlights on Friday March
15, 2024, 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 (767002 #).
A live audio webcast of the conference call will be available
via:
https://app.webinar.net/ybmg6Qq6ZNO
Financial Statements and
MD&A
Valeo Pharma's financial statements and Management's Discussion
and Analysis for the three-month ended January 31, 2024, are available on SEDAR at
www.sedar.com.
About Valeo Pharma
Valeo Pharma is a 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
Forward-looking statements are statements and information
regarding possible events, conditions or results of operations that
are based upon assumptions about future economic conditions and
courses of action. All statements and information other than
statements of historical fact may be forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "seek", "expect", "anticipate", "budget", "plan",
"estimate", "continue", "forecast", "intend", "believe", "predict",
"potential", "target", "may", "could", "would", "might", "will" and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an
outlook.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
reliance on third-party suppliers and manufacturers, the
availability of additional funding, common risks for pharmaceutical
products, including product liability claims, insurance and
recalls, registration risks in certain jurisdictions, the inability
to implement Valeo's strategy to grow the business, dependence on
key management personnel and executives, competition, currency
fluctuations and the risks, uncertainties and other factors
contained in the section entitled "Risk Factors" in Valeo's annual
information form dated January 29,
2024, a copy of which is available on Valeo's Sedar+ profile
at www.sedarplus.ca.
Actual events or results may differ materially from those
anticipated in these forward-looking statements if known or unknown
risks affect Valeo's business, or if Valeo's estimates or
assumptions turn out to be inaccurate. Valeo undertakes no
obligation to update publicly, or otherwise revise, any
forward-looking statements, whether as a result of new information
or future events or otherwise, except as may be required by law. If
Valeo does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements, unless
required by law.
SOURCE Valeo Pharma Inc.