Valeo Pharma making progress as it bids to become leading Canada-focused specialty pharma group

• Strategy to acquire, license, and commercialize high-quality products
• Experienced management team with relationships with key industry leaders
• A large product portfolio

What Valeo Pharma does:

Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF) (FRA:VP2), based in Kirkland, Quebec, was founded in 2003 and aims to be a leading  Canadian specialty pharma group.

Initially, it specialized in dermatology but divested its skin portfolio in 2014. It is now focused on the commercialization of innovative prescription products in Canada, particularly in respiratory, neurology, oncology and hospital specialty products.

Through acquisitions, in-licensing and selective product development, the company has brought over 20 products to the market.

Its experienced management has a proven track record of successfully sourcing, developing and commercializing drugs in a variety of therapeutic areas at all stages of the life cycle in Canada. The firm also aims to be the partner of choice for International companies wishing to enter the Canadian market.

How is it doing: 

Valeo has made significant progress so far in 2021.

On April 15, the company announced that it has commenced commercial shipments across Canada of Redesca and Redesca HP, its low molecular weight heparin (LMWH) biosimilar. LMWHs are injectable anticoagulant drugs used primarily to treat and prevent deep vein thrombosis and pulmonary embolism.

In addition to being used primarily for treating and preventing deep vein thrombosis and pulmonary embolism, LMWH are also now increasingly used as a first line of defense tool in the fight against coronavirus (COVID-19).

Then, on April 28, Valeo Pharma revealed that it has entered into a Product Listing Agreement (PLA) with the executive officer of the Ontario Public Drug Program for the listing of Redesca and Redesca HP, its low molecular weight heparin (LMWH) biosimilar, on the Ontario Drug Benefit Formulary with effect from April 30, 2021.

At the start of April, the company said it had completed its negotiations and entered into a letter of intent (LOI) with the pan-Canadian Pharmaceutical Alliance (pCPA) regarding Redesca and Redesca HP. Established in August 2010, Valeo noted that the pan-Canadian Pharmaceutical Alliance conducts joint provincial/territorial/federal negotiations for brand name and generic drugs in Canada to achieve greater value for publicly-funded drug programs and patients through the use of the combined negotiating power of participating jurisdictions. Redesca and Redesca HP have received Health Canada approval and are set to launch in Q3.

Notably, at the end of March, Valeo Pharma revealed that it had struck a deal with Novartis Pharmaceuticals to commercialize two Health Canada-approved asthma therapies. Under the agreement, Valeo will be responsible for medical and commercial activities for Enerzair Breezhaler and Atectura Breezhaler for an initial eight years, positioning it as one of the leading Canadian respiratory companies.

Most recently, the company revealed that it is now a full member of the Innovative Medicines Canada (IMC) Association, the representative body for Canada’s innovative pharmaceutical industry. The IMC association plays a central advocacy role in all major issues related to the pharmaceutical industry, including price reform and the pan-Canadian rare disease strategy, amongst others.

In terms of financials, on March 31, Valeo posted its first-quarter results to January 31, 2021, showing net revenue of C$1.9 million, up from C$1.7 million in the year-ago period, mainly due to Onstryv revenue growth and the launch of new products such as Ametop, Yondelis and the launch of Sodium Ethacrynate in the US.

The first-quarter net loss was C$1.7 million, compared to a loss of C$1.1 million for the quarter ended January 31, 2020, due to an increase in sales and marketing and general costs to position Valeo for solid revenue growth in 2021, it said.

The company said it anticipated strong revenue growth in the second quarter of fiscal 2021 and accelerated growth in the coming quarters as a result of product additions, which will derive incremental margins and drive profitability. All told, Valeo launched four new products during the last fiscal year, and has three more products set to hit the market in fiscal 2021.

On the financing front, on April 27, Valeo Pharma announced that it had upsized and closed a $6.645 million non-brokered private placement of unsecured non-convertible debenture units. It said that the net proceeds of the offering would be used for working capital and general corporate purposes. 

And in the boardroom, in January, the firm named seasoned executive Frederic Fasano as its president and chief operating officer (COO), a newly-created role. 

Fasano has over 25 years’ experience in managing strategic affiliates in Canada, Europe, and Latin America, and before joining Valeo, he was president and CEO of Servier Canada, a fully integrated affiliate of Servier Group – the independent, international and independent pharma group.

Inflection points:

• Hesperco capsules available in major health care retailers across the country
• Three more new products to be commercialized in 2021
• More product/deal/partnership newsflow

What the boss says:

In April’s statement regarding the listing of Redesca and Redesca HP on the Ontario Drug Benefit Formulary, Frederic Fasano, president and COO of Valeo said: “With Ontario representing 37% of the Canadian market for LMWHs, the listing of Redesca on the Ontario public formulary is a key milestone for the Redesca commercialization program.”

“This is welcome news for millions of Canadians who rely on public insurance to access their prescription medications and for the Government of Ontario who will benefit from significant savings resulting from the listing of the first LMWH biosimilar. We anticipate additional provincial coverage will follow,” he added.

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Story by ProactiveInvestors