Valeo Pharma Inc. (CSE:VPH, OTCQB:VPHIF) has reported record fourth-quarter and full-year revenue after making investments that provided momentum to recent product launches.
The Kirkland, Quebec-headquartered company reported revenues of $13.6 million for the year to October 31, 2021, up 81% from $7.5 million in 2020. Its gross margins for the year were also a record, rising 186% to $4 million.
"2021 was marked with several key milestone achievements by Valeo,” commented Steve Saviuk, the company’s CEO. “We delivered record annual revenues, successfully launched three products with significant revenue growth potential, completed the implementation of a new corporate and commercial infrastructure necessary to support our growth objectives and secured extensive private and public reimbursement for our lead products across the country.”
READ: Valeo Pharma announces another major milestone for its two innovative asthma therapies
Valeo reported 4Q revenues of $3.4 million, up 53% from the same quarter a year earlier, while its net loss widened to $7.7 million from $1.2 million.
"In 2021 we made major investments to expand our commercial team and broaden our infrastructure,” Saviuk explained. "These upfront investments, while increasing our loss in the short term, are now providing commercial momentum to our recent product launches and driving revenue growth at a rate that will place us amongst the leaders in our industry in 2022 and beyond.”
The company attributed its 4Q revenue gains to the strong contribution of new products launched over the past 12 months, including revenues from Redesca, and to a lesser extent, Enerzair Breezhaler and Atectura Breezhaler, Ametop Gel and Yondelis.
It said revenues for the first quarter of its 2022 financial year will demonstrate important top-line and margin growth over the prior quarter and it expects continued sequential quarterly growth as it transitions to positive cash flow by the end of the year.
"As expected, the significant increase in 4Q-2021 revenues and record annual revenues resulted mainly from the addition of the new products launched during the year,” senior vice president and chief financial officer Luc Mainville added. “Valeo is now very well positioned to leverage its new corporate and commercial infrastructure to capitalize on the market potential of its existing product portfolio.”
Valeo Pharma is dedicated to the commercialization of innovative prescription products in Canada with a focus on respirology, neurodegenerative diseases, oncology and other specialty products.
The company has the complete infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.
Contact the author at stephen.gunnion@proactiveinvestors.com