Valeo Pharma Inc. (CSE:VPH, OTCQB:VPHIF) has reported a 128% increase in revenue in the first quarter of 2022 compared to the same period in 2021 as the company continues to expand its business.
In the three months to January 31, 2022, the company posted revenue of C$4.2 million, up from C$1.9 million in Q1, 2021, while the gross margin was up 266% to C$1.4 million, compared to the year-earlier period. However, its net loss widened to C$5.9 million compared to a loss of C$1.7 million in Q1, 2021 as the company's staff numbers and costs rose as it expanded its commercial, medical and support staff required to "capitalize on market opportunities" for its Redesca, Enerzair and Atectura drugs.
"Expanding our reimbursement coverage in all provinces for our three lead products has always been a key objective, with more than 90% private and public Canadian coverage now secured for Redesca, Enerzair and Atectura," CEO Steve Saviuk told investors in a statement.
READ: Valeo Pharma reports record 2021 revenue as new products gain traction
"As we had forecasted, Redesca has rapidly become Valeo's best selling product. Reimbursement coverage is positively impacting prescription growth for Enerzair and Atectura which is accelerating on a monthly basis. While we are focused on executing the commercial plan for our existing products, we continue to pursue business development opportunities that can leverage our capabilities and broaden our revenue base," he added.
Luc Mainville, Valeo Pharma senior vice-president and finance chief, commented: "With the cost of implementing our new business and commercial infrastructure now fully accounted for, we anticipate that the sequential revenue growth of our lead products will expand our operating margins. This will help steadily decline our quarterly operating loss and favourably position Valeo to achieve cash flow positive status in the last quarter of the year on a going-forward basis".
Among the highlights of the first quarter was the listing and public reimbursement of Redesca with Quebec and Alberta, while Hesperco is now available in 300 stores under the Loblaw (TSX:L)'s banners, noted Valeo.
Post-quarter-end, the listing and public reimbursement of Redesca was confirmed in British Columbia, it added, while Enerzair and Atectura have been accepted for reimbursement in Ontario, Manitoba, New Brunswick, Saskatchewan, PEI and with the NIHB and VAC federal program.
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 giles@proactiveinvestors.com