Valeo Pharma launches Redesca™ and is forecasting company revenues to increase 20x by 2025

Bringing new pharmaceutical products to market is a long and expensive process. One Canadian company has found an innovative way to accelerate the process by forming partnerships with pharmaceutical companies that do the research & development (R&D) and manufacturing while they concentrate on the regulatory requirements and then the sales and marketing.

The company is Valeo Pharma Inc. (CSE: VPH | OTCQB: VPHIF | FSE: VP2) (“Valeo”). Valeo is a specialty pharmaceutical company dedicated to the commercialization of innovative prescription and over-the-counter products in Canada. Valeo focuses on speed to market for their products in the key areas of respiratory, neurology, oncology and other specialty products. 

Valeo Pharma focuses on commercializing products from other companies that have already successfully done the R&D and clinical trials

Source: Valeo Pharma corporate presentation

Redesca™ and Redesca HP™ moving rapidly towards commercialization

Just 2 weeks after Valeo announced the commercial launch of Redesca™ and Redesca HP™ on April 15, Valeo was able to announce a further success for their JV low molecular weight heparin (“LMWH”) biosimilar products. On April 28 Valeo announced that they had 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, effective April 30, 2021.

Valeo told InvestorIntel: “It is the first heparin biosimilar to be listed for reimbursement and Ontario is the largest Canadian market for low molecular weight heparin.”

This is a big deal as it paves the way for Valeo’s Redesca™ and Redesca HP™ heparin biosimilar products to be sold in volume in Ontario, Canada. President and COO of Valeo, Frederic Fasano, explains:

“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.”

The Redesca™ product should potentially prove to be very popular as it is licensed from Shenzhen Techdow Pharmaceuticals, the world’s largest heparin manufacturer. Valeo states: “Redesca™ is a low molecular weight heparin biosimilar. LMWHs are injectable anticoagulant drugs used primarily to treat and prevent deep vein thrombosis and pulmonary embolism. Redesca™ has more than 8 years of proven in-market safety internationally and more than 150 million patient days treated in Europe alone.”

Valeo’s other products

Valeo also has a whole range of other products on the market as shown below. Valeo shows the breakdown of where they forecast their future revenues to come from.

Valeo Pharma’s forecast breakdown of 2025 revenue potential by product

Source: Valeo Pharma corporate presentation

Note: Investors need to remember that forecasts may or may not come to fruition and therefore should not be relied upon as being accurate.

On March 29, Valeo announced that they will begin to commercialize their Enerzair® Breezhaler® and Atectura® Breezhaler® products, two innovative asthma therapies approved by Health Canada. Almost 4 million Canadians are afflicted with asthma and the Canadian market for asthma medication exceeds $700 million annually. As shown above, these are forecast to be major revenue contributors for Valeo in coming years.

Valeo’s Hesperco™ is an immune support product, as I discussed previously here. Valeo Pharma and Ingenew Pharma are trialing Hesperco™ in the fight against COVID-19. Valeo Pharma’s Hesperco™ capsules are Health Canada approved (for immune support). 

Valeo Pharma’s revenue projections forecast to grow 20x from 2020 to 2025

Source: Valeo Pharma corporate presentation

Note: Investors need to remember that forecasts may or may not come to fruition and therefore should not be relied upon as being accurate.

Closing remarks

Valeo’s states on their website: “Valeo Pharma is focused on bringing innovation to Canadian physicians, providing them with more options to meet the ever increasing needs of their patients.” Looking at Valeo’s rapidly growing list of products they are already well on their way to hitting that goal.

Judging by Valeo’s recent upsized and closed $6.645 million non-brokered private placement, where insiders bought $2.6 million, I would say Valeo is very seriously committed to succeeding in their goals.

Valeo Pharma Inc. trades on a market cap of C$77 million with enormous upside potential if they can achieve their lofty forecasts, noting risks remain high due to the very early stage of commercialization.

Valeo Pharma is a very exciting story and one to watch closely in 2021.

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