VALEO PHARMA ANNOUNCES RECORD THIRD QUARTER 2022 RESULTS AND HIGHLIGHTS
- Record turnover of $6.1 million in Q3-22, an increase of 27% compared to Q2-22
- Record gross margins of $2.2 million in Q3-22, up 34% compared to Q2-22
- YTD-22 record turnover of $15.1 millionup 48% from YTD 2021
- Q4-22 forecast revenue is expected to exceed $11 million
- XIIDRA®, SIMBRINZA® and ALLERJECT® will increase their revenues from Q4-22
- Non-dilutive United States $30 million funding from Sagard Healthcare Partners to accelerate growth
MONTREAL, September 13, 2022 /CNW Telbec/ – Valeo Pharma Inc. (TSX: VPH) (OTCQB: VPHIF) (FSE: VP2) (“Valeo“or the”Company“), a Canadian pharmaceutical company, today announced its financial results for the third quarter ended July 31, 2022.
Third Quarter and Full Year 2022 Financial Highlights:
- Record turnover of $6.1 million at Q3-22 compared to $5.7 million for Q3-21, up 7% and 27% compared to Q2-22
- Record gross margins in Q3-22 at $2.2 million up 3% vs. Q3-21 and 34% vs. Q2-22
- YTD 2022 record revenue of $15.1 million up 48% from $10.2 million for YTD 2021
- YTD 2022 gross margins of $5.3 million up 63% from $3.3 million for YTD 2021
- Net loss of $4.7 million for Q3-22 compared to $3.0 million for Q3-21
- Q3-22 Adjusted EBITDA loss of $2.9 million below $3.8 million at Q2-22
- Net loss and EBITDA loss in Q3-22 down 7% and 10% compared to the previous Q2-22
- Cash and liquidities of $27.7 million like a July 31, 2022
Third Quarter 2022 Business Highlights
- Conclusion of a marketing and supply agreement with Novartis Pharmaceuticals Canada Inc. for the Canadian rights to market two innovative ophthalmic therapies, XIIDRA® and SIMBRINZA®;|
- Conclusion of a license, supply and commercialization agreement with Kaléo Inc. for the Canadian rights to ALLERJECT®, (epinephrine injection, USP) auto-injector for the treatment of serious allergic reactions; and
- Closed a non dilutive $30 million Sagard Healthcare Partners secured term loan.
Events subsequent to the third quarter of 2022
- Named Mr. Kyle Steiger to the role of Senior Vice President and Chief Commercial Officer August 2022. Mr. Steiger is a pharma industry veteran whose diverse work experience includes specialty pharma, biologics, primary care, medical devices, OTC, health policy and market access. He spent nearly 20 years with Novartis Canada in a variety of leadership roles, including Hematology Franchise Leader, Vice President of Primary Care and most recently Vice President of Ophthalmology.
“Our quarterly revenues reached record levels thanks to the continued commercial progression of our flagship products. We are also very proud to have added three essential commercial assets during this third quarter which will contribute to more than doubling our annual revenues during of the coming year,” said Steve Saviuk, CEO of Valeo. “Our product portfolio now includes 6 core products that are strongly positioned to contribute significantly to our revenue growth. Given the immediate impact of our acquisitions and the organic growth of our existing products, we expect fourth quarter revenue will exceed $11.0 million.”
Commenting on the results for the third quarter of 2022, Luc MainvilleSenior Vice President and Chief Financial Officer, said, “We saw our revenue and product mix continue to improve in the third quarter, while continuing to tightly control our expenses and reduce our quarterly loss. The new products added at the end of Q3-22 are already having a significant impact on our revenues and margins and will help accelerate our trajectory to profitability. $30 million The non-dilutive term loan secured by Sagard Healthcare Partners has significantly strengthened our balance sheet by providing the capital needed to support our operations and working capital needs for the coming year,” added Mr. Mainville.
Third quarter 2022 financial results
- Record turnover of $6.1 million for the quarter ended July 31, 2022 compared to $5.7 million for the quarter ended July 31, 2021 and $4.8 million for the second quarter ended April 30, 2022, an increase of 7% and 27% respectively. These increases were primarily the result of continued business gains from each of Redesca, Enerzair and Atectura;
- Record gross margin of $2.2 million for the quarter ended July 31, 2022 up 3% from Q3-21 and 34% from prior quarter ended April 30, 2022;
- The net loss was $4.7 million for the quarter ended July 31, 2022 compared to $3.0 million for the quarter ended July 31, 2021 and $5.1 million for the second quarter ended April 30, 2022, an increase of 59% and a decrease of 7% respectively. The increase in net loss reflects the expansion of Valeo’s commercial, medical and HO teams during the second part of FY21. These initiatives were necessary to seize significant market opportunities for Redesca, Enerzair and Atectura as well as to accelerate the growth of other existing products; and
- The adjusted EBITDA loss was $2.9 million for the quarter ended July 31, 2022 compared to $1.0 million for the quarter ended July 31, 2021 and $3.8 million for the second quarter ended April 30, 2022an increase of 201% and a decrease of 23% respectively.
2022 financial results since the beginning of the year
- Cumulative turnover since the beginning of the year $15.1 million for the nine months ended July 31, 2022 compared to $10.1 million for the nine months ended July 31, 2021 representing an increase of 48%;
- The gross margin was $5.3 million for the nine months ended July 31, 2022 up 63% from $3.3 million for the nine months ended July 31, 2021;
- Net loss of $15.7 million for the nine months ended July 31, 2022 compared to $6.6 million for the nine months ended July 31, 2021. The increase in net loss reflects additional costs related to the expansion of Valeo’s commercial, medical and HO teams. These initiatives were necessary to seize significant market opportunities for Redesca, Enerzair and Atectura as well as to accelerate the growth of other existing products; and
- Adjusted EBITDA loss of $11.1 million for the nine months ended July 31, 2022 compared to an adjusted EBITDA loss of $3.2 million for the nine months ended July 31, 2021.
Webcast and conference call Q3-2022
Valeo will hold a conference call to discuss its results and highlights for the third quarter of 2022 on Wednesday, September 14, 2022 at 8:30 a.m. (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 (670463#).
A live audio webcast of the conference call will be available via:
Grant of options and PSUs
The Company announces that its Board of Directors has approved the granting of a total of 650,000 stock options (“Options”) and 30,303 restricted stock units (“RSUs”) to an executive newly hired senior and two new senior managers. Options have an exercise price of $0.66vest over a maximum period of four (4) years and have a term of seven years expiring September 13, 2029. The RSUs will vest after one year.
Financial statements and management report
Financial statements and management report of Valeo Pharma for the three- and nine-month periods ended July 31, 2022 are available on SEDAR at www.sedar.com
About Valeo Pharma Inc.
Valeo Pharma is a fast-growing pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on pulmonology/allergy, ophthalmology and specialty products. Based at Kirkland, Quebec, Valeo Pharma has the full capacity and infrastructure to properly register and manage its growing product portfolio through all stages of commercialization. For more information, visit www.valeopharma.com and follow us on LinkedIn and Twitter.
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 in which we operate 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 prove to be inaccurate.
SOURCEValeo Pharma Inc.
For further information: Steve Saviuk, CEO, 514-693-8830, [email protected]; or Luc Mainville, Senior Vice President and Chief Financial Officer, 514 693-8854, [email protected]; or Frederic Dumais, Director, Communications and Investor Relations, 514-782-8803, [email protected]