Revenues of $1.7 million, up 34% compared to previous quarter
Net loss of $1.1 million, down 20% compared to previous quarter
Positive recommendation for the inclusion of Onstryv® on the list of medications covered in Quebec
MONTREAL, March 27, 2020 /CNW Telbec/ - Valeo Pharma Inc. (CSE: VPH) ("Valeo" or the "Company"), a Canadian specialty pharmaceutical company, today reported its financial results for the first quarter ended January 31, 2020.
"We are pleased to see that new products launched during recent quarters are now contributing to the growth of our revenues. Prescriptions for Onstryv®, a new treatment for Parkinson's Disease, are growing on a monthly basis reflecting its strong medical benefits. Following the positive recommendation to the Quebec Health Minister to include of Onstryv® on the list of medications covered for reimbursement, we expect strong quarterly growth of Onstryv sales in 2020 and beyond as private and public reimbursment for this novel drug expands", said Steve Saviuk, President and Chief Executive Officer. "Following the successful addition of three new prescription therapeutics to our portfolio over the last year, we will continue to expand our product offering with several new launches in 2020. With the upcoming launch of Yondelis and the expected approval of Redesca later this year, we are well positioned for continued growth over the quarters to come".
Commenting on the first quarter 2020 results, Luc Mainville, Senior Vice-President and Chief Financial Officer said: "Recent product launches have improved our product mix and contributed to the strong improvement of our gross margin over the previous quarter. We expect our financial performance to improve sequentially over the coming quarters and years as we continue to benefit from the expansion of our commercial product portfolio while maintaining a strict financial discipline regarding operating expenses".
2020 Q1 Financial Highlights
Revenues were $1.7 million for the quarter ended January 31, 2020 compared to $1.8 million ($1.5 million after removing revenues from discontinued products) for the quarter ended January 31, 2019 and $1.3 million for the quarter ended October 31, 2019 respectively; and
Net loss of $1.1 million for the quarter ended January 31, 2020 compared to $1.0 million for the quarter ended January 31, 2019 and $1.4 million for the quarter ended October 31, 2019 respectively.
2020 Q1 Business and Product Highlights
In January 2020, the Company signed a licensing agreement with PharmaMar for the exclusive rights to commercialize Yondelis® (trabectedin) in Canada; and
In November 2019, the Company announced that its New Drug Submission filed for a low molecular weight heparin biosimilar was accepted for review by Health Canada.
2020 Q1 Subsequent Events
In February 2020, the Company closed a non-brokered private placement of convertible debentures for gross proceeds of $2.1 million. A subsequent closing for additional gross proceeds of $0.1 million took place on March 26th, 2020 on the same terms;
In February 2020, the Company received notice of a positive recommendation by INESSS to the Health Minister for the inclusion of Onstryv® on the list of medications covered by the Régie de l'assurance maladie du Québec; and
The outbreak of a novel strain of the coronavirus, ("COVID-19'"), has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures have caused material disruption to businesses globally resulting in an economic slowdown which may impact demand for our products and our ability to secure timely access to supplies. As of today, our revenues and supply chain have not been impacted by the COVID-19 outbreak and we continue to interact with the medical community while respecting social-distancing recommendations.
Financial Statements and MD&A
Valeo Pharma's financial statements and Management's Discussion and Analysis for the three-month period ended January 31, 2020 are available on SEDAR at www.sedar.com
About Valeo Pharma
Valeo Pharma is a specialty pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada. With a focus on Neurodegenerative Diseases, Oncology and Hospital Specialty Products, Valeo Pharma has a growing portfolio of innovative products and the full infrastructure to properly manage these products through all stages of commercialization. Headquartered in Kirkland, Quebec, Valeo Pharma has all capabilities internally to register and market health care solutions for Canadian patients. For more information, please visit http://www.valeopharma.com and follow us on LinkedIn and Twitter.
This news release may contain certain forward-looking statements regarding the Company's expectations for future events. Such expectations are based on certain assumptions that are founded on currently available information. If these assumptions prove incorrect, actual results may differ materially from those contemplated by the forward-looking statements contained in this press release. Factors that could cause actual results to differ include, amongst others, uncertainty as to the final result and other risks. The Company disclaims any intention or obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, other than as required by security laws.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Valeo Pharma inc.
For further information: Steve Saviuk, President and CEO, 514-693-8830, [email protected]; or Luc Mainville, Senior Vice-President and Chief Financial Officer, 514-693-8854, [email protected]; or Frederic Dumais, Director, Communications and Investor Relations, 514-782-8803, [email protected]