|
Market
Equities Research - Market Bulletin
July 3, 2020 10:38 AM ET
Valeo Pharma Inc. knocks Q2 financial results out of the park, on
track for EBITDA profitability in 2020
-
Valeo Pharma Inc. (CSE: VPH) is a fast-growing revenue
generating specialty pharmaceutical company with a strong
product portfolio and a robust product pipeline.
-
The Company is projected to achieve EBITDA profitability in
2020, and grow in profitability significantly thereafter.
------
------ ------ ------ ------ ------
------ ------ ------
Valeo Pharma Inc. (CSE: VPH) is a fully
integrated specialty pharmaceutical company focused on in-licensing
prescription drugs for the Canadian market. This week Valeo reported
its financial results for the second quarter (ended April 30, 2020).
In short, the Company experienced significant increases in revenues,
gross margin, continued decrease of its net loss and EBITDA loss.
The expansion of the Valeo’s commercial portfolio has positively
impacted its results and with the expected launch of Ametop
TM
(Q3-2020 launch) and Yondelis ® (Q4-2020 launch), as well
as FDA approval of Ethacrynate Sodium (Q4-2020 launch), the depth
and diversity of its product portfolio continues to grow.
The July 2, 2020 release
regarding financial results may be viewed at
https://www.valeopharma.com/cms_files/phpnu0qpb.pdf online.
A noteworthy driver of revenues starting in 2021 is
expected to be Redesca ®
(Q1-2021 launch), a low molecular
weight heparin (LMWH) biosimilar used to prevent deep vein
thrombosis and pulmonary embolism. Redesca ® is scheduled
for approval in Canada in Fall 2020, with marketing beginning in
early 2021. Valeo's Redesca ® will be the fourth player in
the low molecular weight heparin market in Canada. As a biosimilar,
Redesca ® will be offered at a lower price than the competition
offers currently, and Valeo is projected to capture a respectable
share of the market. Additionally noteworthy is that LMWH is
increasingly used to help prevent complications when novel
coronavirus (COVID-19) infection is suspected.
Market Equities Research Group commentary
regarding the recent earnings release:
Valeo
Pharma Inc. was essentially rebooted as a new entity in 2015 after
its original portfolio was sold to Valeant for C$26 million,
representing a 350% return to shareholders. On July 2, 2020 Valeo
announced its latest second quarter results, reporting highly
favorable numbers, and affirming the projected trend of increasing
revenues. The new Valeo 2.0 now has a strong product portfolio and a
robust product pipeline set to come to market that should
dramatically drive revenue growth and lead to the dwarfing of the
return to shareholders experienced in Valeo 1.0. The Company is
projected to achieve EBITDA profitability in 2020, and grow in
profitability significantly thereafter. Revenues are projected to go
from ~$10M in 2020 to near $90M within a couple years -- a
near-term $2/share price target for shares of C.VPH is warranted
based on a discounted forward projected earnings basis, on its way
much higher thereafter.
For further DD on Valeo Pharma Inc. see the following
URLs:
Corporate website:
https://www.valeopharma.com
Recent Technology Journal Review:
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
|
