Valeo Pharma Inc reported record third-quarter revenue after it launched new medications for the treatment of vascular disorders and asthma. Gross margins also improved by a substantial 1,602%.
The Quebec-headquartered pharmaceutical company said the Q3 commercial launches of its Redesca, Enerzair and Atectura products are transformative, contributing to its record results.
Valeo noted that it is rapidly evolving into a leading Canadian pharmaceutical company with strong management and extensive commercial infrastructure.
“Our innovative products and pipeline point to robust revenue growth for the coming years," CEO Steve Saviuk said in a statement.
"Redesca has rapidly become our best selling product while initial healthcare professional interest in Enerzair and Atectura, our two newly launched asthma therapies, has been very strong and supports our view that these therapies will be important revenue drivers."
READ: Valeo Pharma completes implementation of its new corporate structure and launches full commercial activities in support of two new asthma medications
Revenue for the three months to end-July rose 280% to $5.7 million from $1.5 million a year earlier while its gross margin rose to a record $2.2 million from $0.1 million. Its net loss came in at $2.9 million, narrower than the $1.6 million in Q3 2020. For the first nine months of fiscal 2021, revenue reached $10.2 million, up 94% over the first nine months of 2020.
"We have continued to build on the momentum of previous quarters and once again delivered record revenues and margins during the quarter,” Luc Mainville, senior vice-president and chief financial officer said.
“In addition to significantly improving our product mix and contributing margins from product sales, our quarter has been impacted by a few material non-recurrent expenses.”
Valeo said its general and administrative (G&A) expenses for the quarter reflect the costs associated with the successful hiring, training and launch of a nationwide sales force and new head office functions to support the commercial activities of Redesca, Enerzair Breezhaler and Atectura Breezhaler.
It also recorded a provision for the potential loss associated with a bank fraud that impacted Valeo and one of its suppliers until the respective liabilities and recovery are fully determined.
It expects sales and marketing costs as well as the G&A expenses, as a percentage of overall revenues, to trend downward going forward as revenues from its lead products reach their full market potential.
In August 2021, the company completed the implementation of its new corporate structure and launched full commercial activities in support of Enerzair Breezhaler and Atectura Breezhaler. It is structured into two business units, Respiratory and Specialty Products. With the completion of a full national sales structure for each business unit, it said its sales team has expanded to 65 professionals out of a total of 100 full-time employees. It has also recently expanded its head office and warehouse capacity to support the growth of its commercial activities.
"We will look back at the third quarter of 2021 and the implementation of our new corporate structure as a pivotal moment for Valeo,” said Frederic Fasano, president and chief operating officer.
"We are very pleased to have successfully met the challenge of assembling a solid team in 2021. We are already seeing the benefits of our new structure and look forward to leverage its commercial potential."
Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory Diseases, Neurodegenerative Diseases, Oncology 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.
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