Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF) (FRA:VP2) has reported record revenue in its second quarter to end-April, 2021, thanks to new product launches, and expects the strong momentum to continue into the third quarter.
For the three months to April 30, the specialty pharma group reported revenue of C$2.65 million, up 27% from the C$2.1 million seen in the same quarter a year earlier, and up 42% from its first fiscal quarter of 2021.
READ: Valeo Pharma closes bought-deal public offering for gross proceeds of $11.5M, including full exercise of over-allotment option
"Our record second-quarter revenues saw growth coming from our existing portfolio along with the first indication of the material impact that our three important product launches will bring," said CEO Steve Saviuk in a statement.
"Redesca was launched at the end of the second quarter and has quickly become our bestselling product, with sales expected to accelerate for quarters to come. Subsequent to the quarter-end, we launched Enerzair Breezhaler and Atectura Breezhaler, two innovative asthma therapies.
"As a result of these launches, we expect third-quarter revenues to expand by more than 50% over our second quarter."
Valeo noted that the products launched over the past year, represented 25% of its second fiscal quarter net revenues and included revenues from Yondelis, Ametop Gel and anticoagulant Redesca, which was launched in the final weeks of the quarter but still generated 'meaningful revenues'.
Also in the second quarter, the company upsized and closed a C$6.645 million private placing of non-convertible debenture units, issuing 11.5 million units at C$1.00 each for gross proceeds of C$11.5 million, including the full exercise of the over-allotment option.
Valeo also entered into a product listing agreement with the executive officer of the Ontario Public Drug Program for the listing of Redesca and Redesca HP the Ontario Drug Benefit Formulary effective April 30, 2021.
The net loss for the second quarter came in at C$1.9 million, up from a loss of C$0.9 million for the quarter to April 30, 2020.
The increase was put down to increased costs as Valeo implemented its new commercial structure to expand its commercial pipeline including the three transformative products - Redesca and Enerzair Breezhaler and Atectura Breezhaler.
The results were also impacted by share-based compensation expenses as Valeo added more senior staff required to position Valeo for revenue growth in 2021 and beyond, the company added.
Headquartered in Quebec, Valeo Pharma commercialized innovative prescription products in Canada, focusing on respirology, neurodegenerative diseases, oncology and other specialty products.
Contact the author at giles@proactiveinvestors.com