Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) has posted second quarter revenue of C$4.8 million, an 80% year-over-year increase, on the back of strong sequential growth of its three transformative products Redesca, Enerzair and Atectura.
The Kirkland, Quebec-headquartered pharmaceutical company said higher revenues from new branded products and improvement in product mix contributed to the 134% growth in gross margin to C$1.7 million for the quarter ended April 30, 2022, compared with C$700,000 a year ago.
"Our second quarter 2022 results and other key performance indicators are confirming the strong commercial progress of our three lead brands, Redesca, Enerzair and Atectura,” said Steve Saviuk, Valeo's CEO in a statement.
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“Redesca has captured a 54 percent share of the Canadian low-molecular-weight heparin biosimilar market, while Enerzair and Atectura are experiencing significant monthly increases in both the number of prescribing physicians and prescriptions and fast market penetration against the established asthma brands," he added.
Valeo posted a net loss of C$5.1 million in 2Q 2022 compared with C$1.9 million in Q2 2021 due to the addition of staff and expenses required to position Valeo for solid revenue growth in 2022 and beyond, as well as the expansion of its commercial, medical and support staff to capitalize on significant market opportunities for Redesca, Enerzair Breezhaler and Atectura Breezhaler, the company said.
Adjusted EBITDA loss was C$3.8 million for the quarter, compared with C$1.1 million a year ago.
Luc Mainville, senior vice-president and CFO, said Valeo’s base business contributed lower-than-expected revenues and margins during the quarter due to timing issues but Redesca, Enerzair and Atectura are already showing strong continued growth in the third quarter.
“The next quarter is evidencing continued growth of our lead products as we leverage our strong working capital position to support the execution of our plan,” he added.
On its first half 2022 performance, Valeo said revenue doubled to C$9.0 million from the 2021 period, while gross margin was C$3.1 million compared with C$1.1 million a year ago, mainly due to the strong contribution of Redesca and the continued commercial progress of Enerzair and Atectura.
Net loss was C$11.0 million for the six months ended April 30, 2022, compared with C$3.6 million for the 2021 period, reflecting the incremental costs involved in the creation of the two business units, as well as expansion of Valeo's commercial, medical and HO teams.
Adjusted EBITDA was a loss of C$8.2 million for the six months, compared with a loss of C$2.2 million for 2021 due to a C$400,000 recovery of the bank fraud which was previously presented as an improvement of the adjusted EBITDA loss, the company said.
“Valeo remains focused on maximizing market share of its lead products while also actively looking to add strategic assets to leverage and take full advantage of its corporate structure and commercial platform," CEO Saviuk added.
Valeo will host a conference call to discuss the results on June 15, 2022 at 8.30am ET. Details of the call are available on the company’s website.
Contact the author at jon.hopkins@proactiveinvestors.com