Valeo Pharma reports revenue jump to $13.5m for three months to end January

Canadian pharmaceutical company Valeo Pharma Inc (TSX: VPH) has reported a 3% increase in revenues for the three months to end January.

The increase equates to $13.5 million and compares to $13.1 million from the previous corresponding quarter.

The growth has been attributed to an uplift in sales generated from promotional activities for anaphylaxis preventer Allerject and continued growth from other core products such as Redesca injectable anticoagulant and Simbrinza prescription eye drops to combat intraocular pressure.

Adjusted gross profit for the period was $3.9 million, representing an 81% jump on the previous quarter’s $2.1 million and a slight decrease on the previous corresponding period.

Valeo said the decrease was due primarily to a halt in promotional activities for Xiidra prescription eye drops to treat the symptoms of dry eye disease.

Financial losses

Inventory write-offs following new product launches resulted in a net loss for the quarter of $6.9 million, compared to $6.2 million for the same time last year (up 10%).

Adjusted loss on earnings before interest, taxation, depreciation and amortisation (EBITDA) was $2.1 million compared to $2.2 million for the same time last year (down 6%) and $4.5 million in the previous quarter (54%).

Move towards profitability

In November, Valeo announced a series of initiatives to reduce operating costs and drive corporate efficiencies in the move towards profitability.

The company expects to decrease its operating expenses by more than $2 million per year by streamlining its organisational structure and commercial support activities.

“Realigning our organisational structure will provide cost savings while allowing for more timely and actionable decision-making to ensure we maximise our commercial activities and attain sustainable profitability,” the company stated.

New appointments

Spearheading the changes was newly-appointed chief financial officer Pascal Tougas, a pharmaceutical executive with a track record in corporate strategy and operational and financial execution.

The company also reshuffled its board to accommodate the departure of four directors and the addition of experienced industry executives Richard Lajoie, Robert Raich and Charles Bisaillon.