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Market
Equities Research - Market Bulletin
December 11, 2020 3:40 PM ET
Health Canada Issues Notice of Compliance for REDESCA,
Valeo Pharma Continues to Execute on In-Licensing Strategy
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Share data, Capitalization, & Corporate info
Shares Outstanding:
64,075,359
(includes
recently closed brokered financing)
Recently Traded:
~CDN$1.10/share (CSE:
VPH)
52 Week High/Low:
CDN$0.25 / $1.87
Current Market Capitalization:
~CDN$72 million
Corporate Website:
www.valeopharma.com |
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Pipeline Rollout Progresses -- Industrial Alliance Sees Near-Term
$2.00 Share Price Target
Valeo Pharma
Inc. (CSE: VPH) (OTCQB: VPHIF) (Frankfurt: VP2)
is a fully integrated specialty pharmaceutical company primarily
focused on in-licensing prescription drugs for the Canadian market.
In-licensing allows Valeo to acquire (without the hassle of R&D
expenditure and risk) the Canadian rights from international drug
manufacturers wanting access to the Canadian markets. Valeo does
everything to make the drug a commercial success that a big
pharmaceutical company would do after it develops a drug. Valeo
maintains, in-house, all the necessary capabilities and
infrastructure to register and manage a drug through all stages of
commercialization. Valeo focuses its efforts primarily on commercial
stage, innovative and proprietary drugs targeting three therapeutic
areas; 1) Neurodegenerative diseases, 2) Oncology, and 3) Hospital
Specialty Products.
The Company has
several products in the market now, and is launching a
pipeline of products. Of particular note, this week
Valeo Pharma announced that Health Canada has issued a Notice of
Compliance for REDESCA® and REDESCA® HP low molecular weight heparin
(“LMWH”) biosimilars. Valeo will launch sales of REDESCA® in
Q1-2021. There is a new wave/push in Canada to support biosimilars.
Alberta and BC are mandating the use of biosimilars, and it is
expected that Ontario and Quebec will follow suit imminently -- the
cost savings are too enormous to ignore. The Provinces spend
$billions on drugs every year, and biosimilars can often be ~25% -
50% cheaper. Biosimilars are the same as the biologic
originals/competition, they are however created from a living
organism and every lot fluctuates minutely, thus they are not
identical and are treated like a new drug by Health Canada. LMWH is
a fairly large market in Canada; it is a ~$200M+ market used in
various common surgical procedures as an anticoagulant agent (e.g.
hip replacements, knee replacements, cardiac procedures) and is also
used in some cases for patients suffering from Covid-19. Valeo's
REDESCA® will be the fourth player in the low molecular weight
heparin market in Canada. With Valeo's REDESCA® entrance at a lower
price, and biosimilar access across the spectrum of drugs being
increasingly pushed by the Provinces, Valeo should capture a
respectable share of the Canadian market.
This December 9, 2020
Industrial Alliance Securities Inc. issued an updated report
regarding Valeo and its REDESCA®. In the report the analysts issued
a Buy rating and $2.00 target price on shares of CSE:VPH. The full report may be viewed
at
https://sectornewswire.com/IASecurities-Report-Valeo-Pharma-VPH-Dec9-2020.pdf
online.
Here are 3 facts
about REDESCA® that investors in Valeo will appreciate:
1) REDESCA® is
the first, and only biosimilar enoxaparin approved in Canada with
over 8 years of worldwide safety and experience.
• Over 140
million patients lives treated.
• Proven safety
and efficacy.
• This provide
confidence that there are no safety or efficacy issues with REDESCA®
biosimilar.
2) REDESCA® is
the first, and only biosimilar enoxaparin approved in Canada with a
comparative clinical trial in a high risk venous thromboembolism
patient population.
• REDESCA® was
approved on the basis of a comprehensive clinical trial program
which included a comparative trial with the reference Lovenox.
• The clinical
trial demonstrated bioequivalence in safety and efficacy in a high
risk venous thromboembolism population; no other biosimilar has this
clinical proof.
• The
comparative trial demonstrated that a new once daily dosing is
effective and equivalent in this population.
3) REDESCA® is
the first, and only, biosimilar enoxaparin approved in Canada with
the complete line of formats similar to Lovenox.
• The only
biosimilar enoxaparin with the multi-dose vial, a necessary format
for hospital pharmacy.
• Having a
complete line enables customers to easily convert their use to
REDESCA® from Lovenox.
On the
financial front Valeo Pharma is knocking it out of the park, is
now achieving breakeven as of Q4-2020, and accelerating revenue-wise
from there; revenues are projected to go from ~$10M in 2020 to near
$90M within a couple years based on the existing and fast growing
product pipeline with the help of two recent product additions; 1)
ONSTRYV®, the 1st Parkinson's Disease treatment launched in Canada
since 2006 (now approved in Canada, marketing underway with access
incrementally coming online), and 2) the aforementioned REDESCA®.
Also of noteworthy revenue potential, and not factored into the
projection is the recent launch of Valeo’s new HesperCo™
bioflavenoid. Additionally, not factored into the projection is the
fact that Valeo's business development team is active in negotiating
new in-licensing deals (yet to be announced, but certain to spark
additional forward discounted value when they do).
Valeo Pharma
Inc. trades on the Canadian Securities Exchange under the symbol VPH,
OTCQB: VPHIF, Frankfurt: VP2. The following URLs have been
identified for additional DD on Valeo Pharma Inc.:
Corporate
website:
https://www.valeopharma.com
Recent
Technology Journal:
https://technologymarketwatch.com/vph.htm
# #
This bulletin may contain
forward-looking statements regarding future events that involve risk and
uncertainties. Readers are cautioned that these forward-looking statements are
only predictions and may differ materially from actual events or results.
Articles, excerpts, commentary and reviews herein are for information purposes
and are not solicitations to buy or sell any of the securities mentioned.
Contact information:
Fredrick
William
Market Equities
Research Group
f.william@marketequitiesresearch.com
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