- Changes to respiratory business unit to generate more than
$5 million in annual savings
- Follows previously announced cost saving measures exceeding
$2 million
- Restructuring charges to be incurred in Q3-24
- Cost reduction initiatives are aimed at improving margins,
significantly reducing operating expenses to accelerate path to
profitability
MONTREAL, June 13,
2024 /CNW/ - Valeo Pharma Inc. (TSX: VPH)
(OTCQB: VPHIF) (FSE: VP2) ("Valeo" or the "Company"),
a Canadian pharmaceutical company, today announced that it has
undertaken a restructuring of its commercial field operations aimed
at improving margins, reducing operating expenses, aligning its
commercial infrastructure with current market dynamics and
accelerating its path to profitability.
Valeo expects these cost reduction measures, including an
approximate 20% downsizing of its workforce, will decrease its
operating expenses by more than $5.0
million on an annualized basis. Combined with the previously
implemented cost reduction measures announced in November 2023, total annualized costs savings
from all measures will exceed $7.0
million.
"Although this restructuring was primarily focused on our
Respiratory Group, we remain fully committed to our three specialty
units, respiratory, ophthalmic and hospital. We felt that a leaner,
more focused approach was needed to ensure the continued revenue
growth for our key products while providing important cost
efficiencies that will allow us to achieve profitability as quickly
as possible. These changes, as well as those cost reductions we
announced earlier in our fiscal year, are key elements towards
improving our operating results and overall financial performance",
said Steve Saviuk, Valeo's CEO.
"While this restructuring provides us with a sustainable operating
structure from which we will continue to grow, the decision to
implement these challenging but necessary changes affects many
Valeo employees. We would like to express our sincere
gratitude to all the employees affected for their dedication and
contributions made over the years."
About Valeo Pharma Inc.
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
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regarding possible events, conditions or results of operations that
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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.