Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) has posted record third-quarter revenue of $6.1 million compared to $5.7 million a year earlier, mainly on the back of continued commercial gains for its respiratory products Redesca, Enerzair and Atectura.
The Canadian pharmaceutical company now expects fourth-quarter revenue to exceed $11.0 million as it reaps the benefits of its acquisitions as well as the organic growth of existing products, its CEO Steve Saviuk said.
"Our quarterly revenues increased to record levels as a result of the continued commercial progress of our lead products,” Saviuk said in the results statement. “We are also very proud to have added three core commercial assets during this third quarter that will help more than double our annual revenues over the coming year."
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For the third quarter ended July 31, 2022, Valeo recorded a gross margin of $2.2 million, also its highest, and up 3% over the same period in 2021. It had cash and liquidities of $27.7 million as of the end of July.
Luc Mainville, Valeo’s senior vice-president and CFO commented: "We have seen our revenues and product mix continue to improve during the third quarter, while continuing to maintain tight control over our expenses and reducing our quarterly loss. The new products added at the end of Q3 2022 are already materially impacting both our revenues and margins and will help accelerate our path towards profitability."
“In addition, the $30 million non-dilutive term loan secured from Sagard Healthcare Partners has significantly strengthened our balance sheet by providing the capital required to support our operations and working capital requirements for the coming year," he added
Valeo saw its net loss for the third quarter widen to $4.7 million from $3.0 million a year earlier, but that was an improvement from the $5.1 million loss reported in its second quarter ended April 30, 2022.
The higher net loss was the result of Valeo's expansion of its commercial, medical and HO teams in the second part of fiscal 2021, initiatives the company said were necessary to capture the significant market opportunities for Redesca, Enerzair and Atectura as well as to accelerate the growth of other existing products.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was a loss of $2.9 million for the quarter ended July 31, 2022, compared to a loss of $1.0 million a year earlier, but an improvement from the $3.8 million loss for the second quarter ended April 30, 2022.
Valeo said it will host a conference call to discuss the third-quarter performance on Wednesday, September 14, 2022, at 8.30am ET. The telephone numbers to access the conference call are 416-764-8659 and 1-888-664-6392.
Separately, Valeo also announced that its board of directors has approved the grant of an aggregate 650,000 incentive share options and 30,303 restricted share units (RSUs) to a newly-hired senior officer and two new senior managers. The options have an exercise price of $0.66, vest over a maximum of four years and have a seven-year term expiring on September 13, 2029. The RSUs will vest after one year.
Valeo Pharma is a fast-growing pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on respirology/allergy, ophthalmology and specialty products. Headquartered in Kirkland, Quebec, the company has the full capability and complete infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.
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