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Valeo Pharma boosts revenue by 76% in 4Q, off the back of several new commercial products

Published: 08:55 25 Feb 2021 EST

Valeo Pharma Inc. -
The launch of new products such as Ametop and Yondelis in Canada and Sodium Ethacrynate in the US helped to boost revenues and margins in 4Q

Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF) (FRA:VP2) saw a 76% increase in its 4Q revenue after it added several new commercial products to its pharmaceutical portfolio. 

In its latest quarterly and full year financials released Wednesday evening, the Montreal-based company said it generated C$2.2 million in revenue for the quarter ended October 31, 2020 and $7.5 million over the full fiscal year – a 14% increase over last year’s levels. 

The launch of new products such as Ametop and Yondelis in Canada and Sodium Ethacrynate in the US helped to boost revenues and margins in 4Q, with a nominal increase to operating expenses, the company told shareholders. 

READ: Valeo Pharma says its Hesperco capsules at core of Montreal Heart Institute's clinical trial to evaluate hesperidin on coronavirus symptoms

Valeo also started shipping online orders of its unique flavonoid formulation, Hesperco, after receiving approval from Health Canada. Hesperco capsules contain a powerful antioxidant to support the immune system.

All told, Valeo launched four new products during the year, and has three more products set to hit the market in fiscal 2021.

"Valeo accomplished key objectives in 2020, which sets the stage for strong growth in 2021,” CEO Steve Saviuk said in a statement accompanying the results.

“In addition to Hesperco, we launched three strategic products and secured regulatory approvals for Redesca, Redesca HP and Amikacin, all of which will be launched in the first half of 2021.”

Saviuk added the specialty pharmaceutical company expects that these products will contribute “significant revenues and margins” in 2021.

"Our vision of building an anchor Canadian pharmaceutical company through therapeutic innovation is solidifying as we continue to build our commercial portfolio in therapeutic areas of focus,” the CEO added.

Valeo’s net loss narrowed during the quarter, coming in at C$1.2 million compared to $1.4 million for the quarter ended October 31, 2019. The company attributed the decrease to improved gross margins derived from higher revenues.

"As evidenced by our revenues increase and net loss decrease of the fourth quarter, our efforts towards becoming a profitable EBITDA company are starting to bear fruit,” CFO Luc Mainville told investors. “The execution of our growth strategy is positioning the company for a very successful year in 2021."

Valeo recently announced that its Hesperco capsules will be at the core of the Montreal Heart Institute's (MHI) clinical trial that will evaluate the effect of hesperidin on coronavirus (COVID-19) symptoms and its ability to reduce disease severity and the need for hospitalization in patients with COVID-19. 

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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