Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF), a pharmaceutical company, reported fiscal quarter results after the bell Tuesday and estimated that it could end 2020 as a profit-making company.
Revenue for the three months ended July 31 was C$1.5 million, down year-over-year from C$2.6 million due to the coronavirus (COVID-19) pandemic and a product launch last year, but a pair of new products this year have things trending up, the company said.
"Our third-quarter revenues were impacted to some extent by the restrictions brought upon by COVID-19 as well as the impact from adjustments relating to prior periods,” CEO Steve Saviuk said in a statement. “We are seeing revenues returning to an uptrend with the recent launch of Ametop in the last few weeks of the quarter and the launch of Yondelis at the beginning of the fourth quarter, together representing 13% of our fourth-quarter sales to date. HesperCo and Ethacrynate Sodium are scheduled to launch in the fourth quarter, driving revenues and profitability going forward."
Ametop is a local anesthetic gel that Valeo licensed from Alliance Pharma in April. HesperCo is an immune system-supporting capsule, and Ethacrynate Sodium is a diuretics designed to treat fluid retention and swelling caused by congestive heart failure and other conditions.
"We have high expectations for HesperCo, which will be launched nationally in the coming weeks, as the immune support it provides is needed in the current healthcare environment,” Saviuk said. “We continue interacting with Health Canada in the review of Redesca [our biosimilar to the blood thinner Heparin with a low molecular weight] and are preparing for an early 2021 launch pending its expected approval ".
These products, as well as a recent move to the OTCQB market in the US, set Valeo up for success, the company said.
"During the quarter, we continued to set the stage for exiting FY-20 as a profitable EBITDA company,” CFO Luc Mainville said. “While revenues will be favourably impacted in the short and medium-term through our product launches and organic sales growth, we continue to implement initiatives to improve our product mix and the margins derived therefrom and retain proactive measures to constantly streamline expenses by assessing our operations and eliminating non-core obligations without sacrificing our growth strategy."
In July, the company closed an oversubscribed private placement of C$1.7 million in non-convertible debenture units.
"The third quarter was very much in line with the second quarter after taking into consideration the non-recurrent nature of a number of items impacting our third quarter. We expect to see key operational metrics continuing their improvement and positioning Valeo to exit Q4-2020 as a profitable EBITDA company", Mainville.added.
Valeo’s EBITDA loss of the quarter was C$700,000, compared to a C$100,000 loss in the same period of 2019.
The Montreal-based company is focused on commercializing products for neurodegenerative diseases, oncology and hospital specialty products.
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