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
Share data, Capitalization, & Corporate info
recently closed brokered financing)
52 Week High/Low:
CDN$0.25 / $1.87
Current Market Capitalization:
Pipeline Rollout Progresses -- Industrial Alliance Sees Near-Term
$2.00 Share Price Target
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
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
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
• This provide
confidence that there are no safety or efficacy issues with REDESCA®
2) REDESCA® is
the first, and only biosimilar enoxaparin approved in Canada with a
comparative clinical trial in a high risk venous thromboembolism
• 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
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.
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).
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.:
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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
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