- Q3-24 revenues of $12.6
million, down 11% from Q3-23, excluding XIIDRA, growth trend
from continued business remains healthy at +9%, Q3-24 vs
Q3-23
- Q3-24 adjusted EBITDA loss of $1.5
million compared to $2.5
million for Q3-23, down
40%
MONTREAL, Sept. 12,
2024 /CNW/ - Valeo Pharma Inc. (TSX: VPH) (FSE: VP2)
("Valeo" or the "Company"), a Canadian pharmaceutical
company, today reported its financial results for the third quarter
ended July 31, 2024.
Third quarter 2024 Results & Highlights:
- Revenues of $12.6 million in
Q3-24 vs $14.1 million in Q3-23, down
11%
- Excluding XIIDRA activity, revenue trend showing +$1 million or
9% growth in Q3-24 vs Q3-23
- YTD-24 revenues of $40.3 million
vs. $40.8 for 2023, down 1%
- Adjusted gross profit of $3.9
million in Q3-24 vs $4.4
million in Q3-23, down 12%
- Q3-24 net loss of $8.2 million vs
$5.8 million in Q3-23, up 40%
- Adjusted EBITDA loss of $1.5
million for Q3-24 vs $2.5
million loss in Q3-23, down 40%
- Enerzair and Atectura prescribing physicians reached 4285 at
the end of Q3-24, a 71% increase year-over-year.
- Total Enerzair and Atectura prescriptions for the 12 months
ending July 31, 2024, exceeded
97,000, up 74% over the 12 months ending July 31, 2023
"As demonstrated by the June 2024
restructuring of our respiratory business unit, we regularly review
performance, structure and business processes to optimize results.
We are dedicated to delivering operational efficiencies while
striving for profitable growth", said Al
Moghaddam, CEO. "We are encouraged by the continued growth
of our respiratory unit and return to growth for our specialty
products despite a $2.5 million
negative impact in revenue during our third quarter of 2024 when
compared to our third quarter of 2023 resulting from the
termination of the XIIDRA commercialization".
Commenting on the third quarter 2024 results, Pascal Tougas, Valeo's Chief Financial Officer,
said, "Factoring out the transfer of XIIDRA, the revenue growth
trend from continued business remains strong. Given the recent
performance of our core brands, revenue growth is expected to
continue going forward. Once the non-recuring restructuring and
transformation costs are fully behind us, this should result in
expanding gross profits and a faster path towards profitable growth
over the coming quarters.''
Third Quarter 2024 Financial Results
- Revenues were $12.6 million for
the third quarter ended July 31,
2024, compared to $14.1
million for the third quarter ended July 31, 2023, representing an 11% decrease.
Valeo's revenues are trending down in Q3-24 as result of the offset
between -$2.5 million from Xiidra
asset transfer (no longer selling) and, +$1.0 million growth from
retained / comparable portfolio, essentially tied to Core brands.
The Q3-24 revenue performance on comparable portfolio represents a
continuing upward trend with $11.8
million compared to $10.8
million in Q3-23, a 9% increase and a 12% increase versus
Q2-24;
- Adjusted gross profit was $3.9
million for the third quarter ended July 31, 2024, compared to $4.4 million for the third quarter ended
July 31, 2023, representing a 12%
decrease. The $0.5 million decrease
over the previous comparable period is tied to the transfer of
Xiidra only contribution for portion of Q3-24, resulting in a
$1.3 million decrease versus same
quarter year over year;
- Net loss was $8.2 million for the
third quarter ended July 31, 2024,
compared to $5.8 million for the
third quarter ended July 31, 2023.
The 40% increase in net loss in Q3-24 mainly results from a
combination of i) Gross profit diluted by $1.3 million tied to Xiidra only being active for
a portion of Q3-24 and ii) transformation and restructuring costs
(supported under G&A) in Q3-24 in the amount of $1.6 million;
- Adjusted EBITDA loss was $1.5
million for the third quarter ended July 31, 2024, compared to $2.5 million for the third quarter ended
July 31, 2023, a 40%
improvement.
Year to Date 2024 Financial Results
- YTD Revenues of $40.3 million for
the nine months ended July 31, 2024
compared to $40.8 million for the
nine months ended July 31, 2023
representing a 1% decrease;
- Adjusted gross profit was $11.2
million for the nine months ended July 31, 2024 down 14% compared to $13.0 million for the nine months ended
July 31,
2023;
- Net loss of $22.9 million for the
nine months ended July 31, 2024
compared to $18.6 million for the
nine months ended July 31, 2023;
and
- Adjusted EBITDA loss of $6.1
million for the nine months ended July 31, 2024 compared to an adjusted EBITDA loss
of $6.4 million for the nine months
ended July 31, 2023, a 5%
improvement.
Third Quarter 2024 Highlights
- In May 2024, the Company
confirmed that the effective date of termination regarding the
XIIDRA partial termination agreement previously entered into was
set at May 30, 2024, rather than the
date of the marketing authorization transfer;
- In June 2024, the Company
announced the restructuring of its respiratory commercial field
operations aimed at reducing its operating expenses, aligning its
commercial infrastructure with current market dynamic and
accelerating its path to profitability with cost reduction
measures, affecting approximately 20% of its workforce, to decrease
its operating expenses by more than $5
million on an annualized basis; and
- In June 2024, the Company
announced the appointment of Mr. Al
Moghaddam to the newly created role of Chief Development
Officer and his departure from the Company's Board of
Directors.
Third Quarter 2024 Subsequent Events
In August 2024, the Company
announced the appointment of its Chief Development Officer, Mr.
Al Moghaddam, to succeed its
retiring CEO, Steve Saviuk. Mr.
Saviuk has remained on Valeo's Board of Directors and assumed the
role of Chairman. Mr. Richard J.
MacKay has stepped down from his role of Chairman of the
Board and remained a Board member;
- In August 2024, the Company
announced its voluntary delisting of its Class A shares from
trading on the OTCQB Venture Market due to low trading volume, the
associated administrative requirements and costs and other
corporate and commercial priorities. The Company's last day of
trading on the OTCQB Venture Market was August 30, 2024;
- In September 2024, the Company
entered into an agreement with Sagard Healthcare Royalty Partners,
LP ("Sagard") amending the Secured Term Loan entered into between
Valeo and Sagard in July
2022. The Facility was amended to provide, among other things,
an extension until September 6, 2024,
which date can be extended thereafter for successive one-week
periods, at Sagard's sole
discretion, for the first $10 million
repayment by Valeo, originally scheduled for August 31, 2024. Pursuant to the Amendment, and
regardless of the extension of the First Repayment, Valeo made an
immediate repayment of US$4,800,000
(approx. C$6,500,000) reducing the
principal amount owed by Valeo on the Facility. Other obligations
to meet certain minimum liquidity requirements have also been
extended to September 30, 2024;
and
- On September 6, 2024,
Sagard provided an additional
extension period.
Third Quarter 2024 Webcast and Conference Call
Valeo will host a conference call to discuss its third quarter
2024 results and highlights on Friday
September 13, 2024, at 8.30 am
(ET). The telephone numbers to access the conference call
are 1-437-900-0527 and 1-888-510-2154. An audio replay of the call
will be available. The numbers to access the audio replay are
1-289-819-1450 and 1-888-660-6345-0541 using the following
access code (68810 #).
A live audio webcast of the conference call will be available
via:
https://app.webinar.net/yVn5GpN1pM9
Financial Statements and MD&A
Valeo Pharma's financial statements and Management's Discussion
and Analysis for the three-month and nine-month periods ended
July 31, 2024, 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, 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.
Forward Looking Statements
Forward-looking statements are statements and information
regarding possible events, conditions or results of operations that
are based upon assumptions about future economic conditions and
courses of action. All statements and information other than
statements of historical fact may be forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "seek", "expect", "anticipate", "budget", "plan",
"estimate", "continue", "forecast", "intend", "believe", "predict",
"potential", "target", "may", "could", "would", "might", "will" and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an
outlook.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
reliance on third-party suppliers and manufacturers, the
availability of additional funding, common risks for pharmaceutical
products, including product liability claims, insurance and
recalls, registration risks in certain jurisdictions, the inability
to implement Valeo's strategy to grow the business, dependence on
key management personnel and executives, competition, currency
fluctuations and the risks, uncertainties and other factors
contained in the section entitled "Risk Factors" in Valeo's annual
information form dated January 29,
2024, a copy of which is available on Valeo's Sedar+ profile
at www.sedarplus.ca.
Actual events or results may differ materially from those
anticipated in these forward-looking statements if known or unknown
risks affect Valeo's business, or if Valeo's estimates or
assumptions turn out to be inaccurate. Valeo undertakes no
obligation to update publicly, or otherwise revise, any
forward-looking statements, whether as a result of new information
or future events or otherwise, except as may be required by law. If
Valeo does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements, unless
required by law.
SOURCE Valeo Pharma inc.
