- Record Q2-24 revenues of $14.1
million, up 4% over Q2-23 outpacing revenue softness in
several non-core brands
- Q2-24 adjusted EBITDA loss of $2.5
million compared to $1.7
million for Q2-23, up 48%
- Total Enerzair and Atectura prescriptions for the 12 months
ending April 30, 2024, exceeded
88,000, up 96% over the 12 months ending April 30, 2023
MONTREAL, June 13,
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 second quarter ended April
30, 2024.
Second quarter 2024 Results & Highlights:
- Revenues of $14.1 million in
Q2-24 vs $13.6 million in Q2-23, up
4% respectively
- YTD-24 revenues of $27.7 million
vs. $26.7 for 2023, up 4%
- Adjusted gross profit of $3.4
million in Q2-24 vs $4.7
million in Q2-23, down 27%
- Q2-24 net loss of $7.8 million vs
$6.5 million in Q2-23, up 21%
- Adjusted EBITDA loss of $2.5
million for Q2-24 vs $1.7
million loss in Q2-23, up 48%
- Enerzair and Atectura prescribing physicians reached 3891 at
the end of Q2-24, a 91% increase year-over-year.
- Total Enerzair and Atectura prescriptions for the 12 months
ending April 30, 2024, exceeded
88,000, up 96% over the 12 months ending April 30, 2023
"While we achieved record revenues in our second quarter, the
top line results don't give a full picture of the progress that we
are making. Revenue softness in a number of our non-core brands
coupled with short term structural delays in Ontario affecting Redesca masked the strong
performance of our asthma franchise with their Q2 revenues
increasing 52% over the same quarter last year", said Steve Saviuk, CEO. "Earlier today we announced a
significant and well thought out restructuring of our respiratory
commercial field operations. This will yield significant savings
going forward while allowing us to continue to support the
trajectory of our sales growth for that unit. These challenging but
necessary changes were needed to place us on a sustainable footing
while simultaneously positioning us solidly on a path to
profitability".
Commenting on the second quarter 2024 results, Pascal Tougas, Valeo's Chief Financial Officer,
said, "Our core brands continue to play a central role in quarterly
sequential revenue growth. Gross profit was temporarily eroded in
the first half of 2024 resulting from a specific product mix and
the expected declining contribution from XIIDRA. We see growing
momentum on core assets and progressively improving product mix
that will help reposition the Company on an upward trajectory for
the second half of the year. We also expect our operating losses to
continue improving as announced measures continue yielding
reduction in operating expenses and allow to improve alignment with
market dynamics.''
Second Quarter 2024 Financial Results
- Revenues were $14.1 million for
the second quarter ended April 30,
2024, compared to $13.6
million for the second quarter ended April 30, 2023, representing a 4% increase. Valeo
revenue growth mainly resulted from sales uplift generated via
promotional activities in respiratory, Allerject and continued
growth from other core products, such as Redesca, Simbrinza;
- Adjusted gross profit was $3.4
million for the second quarter ended April 30, 2024, compared to $4.7 million for the second quarter ended
April 30, 2023, representing a 27%
decrease. The $1.3 million decrease
over the previous comparable period is mainly due to a declining
Xiidra contribution of $0.8 million
versus same quarter year over year;
- Net loss was $7.8 million for the
second quarter ended April 30, 2024,
compared to $6.5 million for the
second quarter ended April 30, 2023.
The 21% increase in net loss in Q2-24 mainly results from a
combination of i) Gross profit diluted by eroding Xiidra
contribution and ii) transformation costs (supported under G&A)
in Q2-24 in the amount of $0.5
million;
- Adjusted EBITDA loss was $2.5
million for the second quarter ended April 30, 2024, compared to $1.7 million for the second quarter ended
April 30, 2023, a 48%
deterioration.
Year to Date 2024 Financial Results
- Record YTD Revenues of $27.7
million for the six months ended April 30, 2024 compared to $26.7 million for the six months ended
April 30, 2023 representing a 4%
increase;
- Adjusted gross profit was $7.2
million for the six months ended April 30, 2024 down 28% compared to $8.6 million for the six months ended
April 30, 2023;
- Net loss of $14.7 million for the
six months ended April 30, 2024
compared to $12.7 million for the six
months ended April 30, 2023. 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 $4.7
million for the six months ended April 30, 2024 compared to an adjusted EBITDA
loss of $3.9 million for the six
months ended April 30, 2023, a 9%
deterioriation.
Second Quarter 2024
Highlights
- 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 materialized in
Q2-2024.
- In March 2024, the Company
announced the appointment of Mr. Al
Moghaddam to the Company's Board of Directors. Mr. Moghaddam
is a customer centric transformational life sciences leader with
over 25 years of global experience. His work experience spans from
large multinationals through to early-stage companies and he has
held leadership positions within pharma, medical device, med-tech,
and consumer markets. He is a strong visionary, process driven
leader, able to craft a vision and motivate teams to achieve
superior results and recognized by such companies as Allergan,
Bristol Myers Squibb, Teva & Pharmascience for outstanding
performance in creating value. He has cross functional experience
in product life cycle management, sales, BD&L, market access,
marketing, finance & M&A.
Second Quarter 2024 Subsequent Events
- In May 2024, the Company
confirmed that the effective date of termination regarding the
XIIDRA partial termination agreement previously entered into was
set at May 30, 2024, rather than the
date of the marketing authorization transfer; and
- In June 2024, the Company
announced the restructuring of its respiratory commercial field
operations aimed at reducing its operating expenses, aligning its
commercial infrastructure with current market dynamic and
accelerating its path to profitability with cost reduction
measures, affecting approximately 20% of its workforce, to decrease
its operating expenses by more than $5
million on an annualized basis.
Second Quarter 2024 Webcast and Conference Call
Valeo will host a conference call to discuss its second quarter
2024 results and highlights on Friday June
14, 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 (150417 #).
A live audio webcast of the conference call will be available
via:
https://app.webinar.net/lmwv2P42DyQ
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, 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.