Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) said its revenue for the first quarter ended January 31, 2023, rose by 210% to a record $13.2 million, up from $4.2 million in the corresponding period of 2022, thanks to the inclusion of new products and the market share gained by its core products.
Adjusted gross profit came in at $4.2 million compared to $1.5 million in Q1-22, a 178% increase, the Canadian pharmaceutical company said.
"Our core innovative products continue to gain market share in their respective therapeutic areas significantly contributing to our revenue and margin growth. Enerzair and Atectura, our asthma therapies, continue their rapid adoption with Enerzair now the leading drug in the fast-growing triple-active asthma market", said Steve Saviuk, CEO in the results statement.
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Physicians prescribing Enerzair and Atectura reached 1,583 at the end of the first quarter, 39% growth for the quarter and a 799% increase year-over-year. A total of 34,000 Enerzair and Atectura prescriptions were made over the last 12 months at the end of first quarter, up 41% sequentially and 1917% year-over-year, added the company which is dedicated to the commercialization of prescription products focusing on respiratory/allergy, ophthalmology and hospital specialty products.
The strong first quarter performance was underscored by 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, the company added.
"The strong increase in the number of physician prescribers and total prescriptions dispensed over previous periods is due to the important clinical benefits that these therapies provide and the dynamic commercial effort by our dedicated field force and marketing team. These therapies are meeting the high expectations we have set and are rapidly establishing Valeo as a growing force in asthma care," it noted.
The company reported a net loss of $6.2 million for the quarter ended January 31, 2023, compared to $5.9 million in the year-ago period due to an increase in financial expenses, which was partly offset by a significant increase in gross profit.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period came in at a loss of $2.2 million compared to a loss of $4.5 million for the quarter ended January 31, 2022, a 51% improvement.
Commenting on the record first quarter 2023 results, Luc Mainville, the company's senior vice-president and chief financial officer said, "Valeo delivered yet another solid quarter of improving key financial performance metrics during the first quarter of 2023 with consecutive record quarterly revenues, increasing adjusted gross profit and decreasing adjusted EBITDA loss.
“As we continue to work towards expanding our product portfolio we are focused on taking full advantage of our existing operating leverage. With tight control over operating expenses, our growing revenues will result in a continued expansion of our gross profit and overall profitability going forward".
Webcast and Conference Call
Valeo said it will host a conference call to discuss its first quarter results on Thursday, March 16, 2023, at 8.30 am ET. The telephone numbers for access 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 (254549 #).
A live audio webcast of the conference call will be available at this link.
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