- Record revenues of $54 million
for fiscal 2023, up 94% over 2022
- Revenues of $13.1 million for
Q4-23, up 4% over Q4-22
- Record annual adjusted gross profit of $16.9 million for 2023, compared to $9.4 million for 2022, up 80%
- 2023 adjusted EBITDA loss of $10.9
million compared to $14.5
million for 2022, down 25%
- Total Enerzair and Atectura prescriptions for the 12 months
ending October 31, 2023, exceeded
67,000, up 179% over October 31,
2022
MONTREAL, Jan. 29,
2024 /CNW/ - Valeo Pharma Inc. (TSX: VPH) (OTCQB:
VPHIF) (FSE: VP2) ("Valeo" or the "Company"), a
Canadian pharmaceutical company, today reported its financial
results for the fourth quarter and year-ended October 31, 2023.
Fourth quarter and year-end 2023 Results &
Highlights:
- Revenues of $53.9 million for
2023 vs $27.7 million for 2022, up
94%
- Revenues of $13.1 million in
Q4-23 vs $12.7 million in Q4-22, up
4%
- Adjusted gross profit of $16.9
million for 2023 vs $9.4
million for 2022, up 80%
- Adjusted gross profit of $2.6
million in Q4-23 vs $3.6
million in Q4-22, down 29%
- 2023 net loss of $27.8 million vs
$25.7 million for 2022
- Q4-23 net loss of $9.2 million vs
$9.3 million in Q4-22
- Adjusted EBITDA loss of $10.9
million for 2023 vs $14.5
million for 2022, down 25%
- Adjusted EBITDA loss of $4.5
million for Q4-23 vs $2.9
million loss in Q4-22, up 56%
- Enerzair and Atectura prescribing physicians reached 2,967 at
the end of Q4-23, a 19% growth for the quarter and 161% increase
year-over-year.
"Valeo delivered another year of significant growth in 2023 with
annual revenues and adjusted gross profit increasing 94% and 80%
respectively over 2022. Our 3 main pillars of growth, Enerzair,
Atectura and Redesca, all experienced growing revenues, market
share gains and are positioned for further growth in 2024", said
Steve Saviuk, CEO. "Our main focus
for 2024 is to accelerate our path to profitability, in our
on-going effort to drive value for our shareholders. We look
forward to seeing the impact of our recently implemented cost
reduction initiatives and organizational realignment measures
materializing, starting in the first quarter of 2024, and having
full impact by the third quarter of 2024".
Commenting on the fourth quarter and fiscal 2023 results,
Pascal Tougas, Valeo's Chief
Financial Officer, said, "Although our fourth quarter of 2023 was
more challenging in terms of EBITDA and cash management, our team
remains fully focused on the execution of our currently ongoing and
upcoming business initiatives. This will enable us to reap the
benefits associated with the recently implemented and upcoming
operating expenses reduction measures, while effectively supporting
the dynamic growth of our core assets. We expect continued revenue
growth and sequential improvements in our results starting in the
first quarter of the current year and continuing throughout 2024 as
we accelerate our path towards profitability.''
Fourth Quarter 2023 Financial Results
- Revenues were $13.1 million for
the quarter ended October 31, 2023,
compared to $12.6 million for the
quarter ended October 31, 2022,
representing a 4% increase. Valeo revenue growth momentum
temporarily affected by adjustments to carrying provisions for
rebates and sales returns;
- Adjusted gross profit was $2.6
million for the quarter ended October
31, 2023, compared to $3.6
million for the quarter ended October
31, 2022, representing a 29% decrease. The decrease over the
previous comparable period is directly impacted by adjustments to
carrying provisions and, to a lesser extent, some unfavorable
product mix, which is being addressed as part of our focus on
accelerating our path to profitability;
- Net loss was $9.2 million for the
quarter ended October 31, 2023,
compared to $9.3 million for the
quarter ended October 31, 2022. The
1% decrease in net loss in Q4-23 resulting mainly from the offset
between Gross Profit negatively impacted by sales provisions versus
depressed debt evaluation; and
- Adjusted EBITDA loss was $4.5
million for the quarter ended October
31, 2023, compared to $2.9
million for the quarter ended October
31, 2022, a 56% increase.
Year 2023 Financial Results
- Record YTD Revenues of $53.9
million for the twelve months ended October 31, 2023, compared to $27.7 million for the twelve months ended
October 31, 2022, representing a 94%
increase;
- Adjusted gross profit was $16.9
million for the twelve months ended October 31, 2023, up 80% compared to $9.4 million for the twelve months ended
October 31, 2022;
- Net loss of $27.8 million for the
twelve months ended October 31, 2023
compared to $25.7 million for the
twelve months ended October 31, 2022.
The 8 % increase in net loss is predominantly due to the increase
in financial expenses ($3.3 million)
and the increase in S&M expenses ($4.0
million) to support the new business unit, which were only
partly offset by gained sales traction and gross profit
($6.8 million); and
- Adjusted EBITDA loss of $10.9
million for the twelve months ended October 31, 2023 compared to an adjusted EBITDA
loss of $14.5 million for the twelve
months ended October 31, 2022, a 25%
improvement.
Q4 2023
Highlights
- In October 2023, the Company was
recognized by the Report on Business as one of Canada's Top Growing Companies with a
three-year revenue growth rate over 300%;
- In September 2023, the Company
entered into a credit facility agreement with Accord Financial Inc.
The $5 million credit facility is
secured by a first rank lien on the Corporation's short-term
assets, and bears interest at the Scotiabank's prime rate plus an
applicable margin. Borrowings under the credit facility are
expected to be used for working capital and other general corporate
purposes; and
- In August 2023, the Company
closed a $4.5 million financing
comprised of a non-brokered private placement offering of
13,999,997 units of the Company at a price of $0.28 per Unit for gross proceeds of $3.92 million. Each Unit consisted of one (1)
class A share of the Company (each, a "Share") and one-half
(1/2) Share purchase warrant of the Company (a "Warrant").
Each full Warrant entitling the holder to purchase one (1) Share in
the capital of the Company (a "Warrant Share") at the price
of $0.35 per Warrant Share for a
period of 60 months from the closing date of the Offering (the
"Closing Date"). The non-brokered private placement included
the participation of Investissement Québec for $2.0 million and $1.421
million from Insiders. In addition, the Company secured a
loan agreement with a related party for a principal amount of
$580,000 bearing annual interest at a
rate of 12%.
Fourth Quarter 2023 Subsequent Events
- In November 2023, the Company
announced the undertaking of a series of initiatives to reduce
operating costs and drive operational efficiency. The Corporation
also announced the appointment of Mr. Pascal Tougas as its new Chief Financial
Officer, effective November 20, 2023;
and
- In November 2023, the Corporation
announced the appointment of Mr. Richard
Lajoie to its Board of Directors and the retirement of Ms.
Maureen C. Brennan from its Board of
Directors. Mr. Lajoie was President of Bausch Health, Canada from 2017 to 2021 before being promoted
to President Ortho Dermatologics US based in New Jersey. Prior to Bausch Health, Richard
spent 12 years with Novartis Pharmaceuticals in roles of increasing
responsibility.
Fourth Quarter and year-end 2023 Webcast and Conference
Call
Valeo will host a conference call to discuss its fourth quarter
and year-end 2023 results and highlights on Tuesday January 30, 2024, at 8.30 am (ET). The telephone numbers to access the
conference call are 416-764-8659 and 1-888-664-6392. An audio
replay of the call will be available. The numbers to access the
audio replay are 416-764-8677 and 1-888-390-0541 using the
following access code (959607 #).
A live audio webcast of the conference call will be available
via:
https://app.webinar.net/5z6nmw5MNAw
Financial Statements and MD&A
Valeo Pharma's financial statements and Management's Discussion
and Analysis for the three month and twelve-month periods ended
October 31, 2023, are available on
SEDAR at www.sedar.com.
About Valeo Pharma
Valeo Pharma is a Canadian pharmaceutical company dedicated to
the commercialization of innovative prescription products in
Canada with a focus on
Respiratory/Allergy, Ophthalmology and Hospital Specialty Products.
Headquartered in Kirkland, Quebec
Valeo Pharma has all the required capabilities and the full
infrastructure to register and properly manage its growing product
portfolio through all stages of commercialization. For more
information, please visit www.valeopharma.com and follow us on
LinkedIn and Twitter.
Forward Looking Statements
This press release contains forward-looking statements about
Valeo's objectives, strategies and businesses that involve risks
and uncertainties. These statements are "forward-looking" because
they are based on our current expectations about the markets we
operate in and on various estimates and assumptions. Actual events
or results may differ materially from those anticipated in these
forward-looking statements if known or unknown risks affect our
business, or if our estimates or assumptions turn out to be
inaccurate.
SOURCE Valeo Pharma Inc.
