Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF) (FRA:VP2) told investors it expects to report further strong revenue in its next fiscal quarter (2Q) as it commercializes asthma drugs Enerzair Breezhaler and Atectura Breezhaler in Canada as the company posted an 11% uplift in revenue in its first-quarter results.
As reported at the end of March 2021, the company struck a milestone deal with pharma giant Novartis Pharmaceuticals to commercialize the two Health Canada approved asthma therapies.
READ: Valeo Pharma shares get a boost as it unveils deal with Novartis on two Health Canada approved asthma therapies
"We are excited about the opportunity to enter the growing asthma market with two innovative drugs, Enerzair Breezhaler and Atectura Breezhaler. The Canadian asthma market exceeds $700 million annually and is expected to grow at 2-3% per year over the next ten years," Steve Saviuk, Valeo's CEO said in the 1Q results statement.
"We expect combined peak sales of these two new drugs to exceed $100 million annually. With the coming launch of Redesca, our low-molecular-weight-heparin biosimilar, and the Montreal Institute of Cardiology’s ongoing Covid-19 clinical trial involving Hesperco capsules, 2021 marks a turning point in Valeo’s history”.
For the three months to January 31, 2021, Valeo Pharma posted net revenue of C$1.9 million, up from C$1.7 million in the year-ago period, mainly due to Onstryv revenue growth and the launch of new products such as Ametop, Yondelis and the launch of Sodium Ethacrynate in the US, the firm said.
The first-quarter net loss was C$1.7 million, compared to a loss of C$1.1 million for the quarter ended January 31, 2020, due to an increase in sales and marketing and general costs to position Valeo for solid revenue growth in 2021.
"Our net revenues for the quarter continued to grow and reflected the addition of several products during the latter part of our 2020 fiscal year. Our first-quarter results were impacted by calendar year-end slowdown of the pharma sector as well as an increase in operating expenses to support our growth initiatives," noted Luc Mainville, Valeo Pharma's chief financial officer and senior vice-president.
"We anticipate strong revenue growth in the second quarter of fiscal 2021 and accelerated growth in the coming quarters as a result of these product additions which will derive incremental margins and drive our profitability going forward."
Among other highlights of fiscal 1Q, Frederic Fasano was appointed the company's president and chief operating officer (COO) and anticoagulants Redesca and Redesca HP received Health Canada approval, and are set to launch in Q3.
Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on respiratory, neurology, oncology and hospital specialty products.
Contact the author at giles@proactiveinvestors.com