VALEO PHARMA REPORTS RECORD SECOND QUARTER 2024 REVENUES
-
Record Q2-24 revenues of
$14.1 million , up 4% over Q2-23 outpacing revenue softness in several non-core brands -
Q2-24 adjusted EBITDA loss of
$2.5 million compared to$1.7 million for Q2-23, up 48% -
Total Enerzair and Atectura prescriptions for the 12 months ending
April 30, 2024 , exceeded 88,000, up 96% over the 12 months endingApril 30, 2023
Second quarter 2024 Results & Highlights:
- Revenues of
$14.1 million in Q2-24 vs$13.6 million in Q2-23, up 4% respectively - YTD-24 revenues of
$27.7 million vs.$26.7 for 2023, up 4% - Adjusted gross profit of
$3.4 million in Q2-24 vs$4.7 million in Q2-23, down 27% - Q2-24 net loss of
$7.8 million vs$6.5 million in Q2-23, up 21% - Adjusted EBITDA loss of
$2.5 million for Q2-24 vs$1.7 million loss in Q2-23, up 48% - Enerzair and Atectura prescribing physicians reached 3891 at the end of Q2-24, a 91% increase year-over-year.
- Total Enerzair and Atectura prescriptions for the 12 months ending
April 30, 2024 , exceeded 88,000, up 96% over the 12 months endingApril 30, 2023
"While we achieved record revenues in our second quarter, the top line results don't give a full picture of the progress that we are making. Revenue softness in a number of our non-core brands coupled with short term structural delays in
Commenting on the second quarter 2024 results,
Second Quarter 2024 Financial Results
- Revenues were
$14.1 million for the second quarter endedApril 30, 2024 , compared to$13.6 million for the second quarter endedApril 30, 2023 , representing a 4% increase. Valeo revenue growth mainly resulted from sales uplift generated via promotional activities in respiratory, Allerject and continued growth from other core products, such as Redesca, Simbrinza; - Adjusted gross profit was
$3.4 million for the second quarter endedApril 30, 2024 , compared to$4.7 million for the second quarter endedApril 30, 2023 , representing a 27% decrease. The$1.3 million decrease over the previous comparable period is mainly due to a declining Xiidra contribution of$0.8 million versus same quarter year over year; - Net loss was
$7.8 million for the second quarter endedApril 30, 2024 , compared to$6.5 million for the second quarter endedApril 30, 2023 . The 21% increase in net loss in Q2-24 mainly results from a combination of i) Gross profit diluted by eroding Xiidra contribution and ii) transformation costs (supported under G&A) in Q2-24 in the amount of$0.5 million ; - Adjusted EBITDA loss was
$2.5 million for the second quarter endedApril 30, 2024 , compared to$1.7 million for the second quarter endedApril 30, 2023 , a 48% deterioration.
Year to Date 2024 Financial Results
- Record YTD Revenues of
$27.7 million for the six months endedApril 30, 2024 compared to$26.7 million for the six months endedApril 30, 2023 representing a 4% increase; - Adjusted gross profit was
$7.2 million for the six months endedApril 30, 2024 down 28% compared to$8.6 million for the six months endedApril 30, 2023 ; - Net loss of
$14.7 million for the six months endedApril 30, 2024 compared to$12.7 million for the six months endedApril 30, 2023 . The increase in net loss is mainly due to the increase in financial and sales and marketing expenses, which was partly offset by the significant increase of our gross profit; and - Adjusted EBITDA loss of
$4.7 million for the six months endedApril 30, 2024 compared to an adjusted EBITDA loss of$3.9 million for the six months endedApril 30, 2023 , a 9% deterioriation.
Second Quarter 2024 Highlights
- In
February 2024 , the Company announced the appointment Messrs.Robert Raich andCharles Bisaillon to the Company's Board of Directors and that Messrs.Michel Trudeau ,Stuart Fowler ,Didier Leconte and Ms.Tamara Close have all resigned from its Board of Directors. - In
February 2024 , the Company entered into an amendment of its 7-year Commercialization and Supply Agreement of XIIDRA® and SIMBRINZA®. As per the Amendment, Valeo will continue to distribute XIIDRA® for the entire transition period. The transition period is expected to continue until approximately Q3-2024. Valeo will continue to commercialize and promote SIMBRINZA® on an exclusive basis as provided by the Commercial and Supply Agreement with Novartis. Within 60 days from the Effective Date of Termination, Valeo will be entitled to a reimbursement of a residual portion of the upfront fee paid by Valeo at the time it entered into the Commercialization and Supply Agreement. The amount to be received as Reimbursement, when received, will be used for partial repayment of the Secured Term Loan (the "Facility'') entered into between Valeo and Sagard Healthcare Royalty Partners, LP ("Sagard") inJuly 2022 . - In
February 2024 , the Company also entered into an agreement withSagard to provide, among other things, for accelerated debt repayment of the Facility. Under the Sagard Amendment, Valeo will be required to make a first repayment of$10 million byAugust 31, 2024 and will also have the option to make an additional repayment of US$5 million under the Facility, which amount is currently held in a restricted cash account; and - On
February 23, 2024 , the Corporation entered into an agreement to assign the rights to a non-core asset for gross proceeds consideration of$1.5 million materialized in Q2-2024. - In
March 2024 , the Company announced the appointment ofMr. Al Moghaddam to the Company's Board of Directors.Mr. Moghaddam is a customer centric transformational life sciences leader with over 25 years of global experience. His work experience spans from large multinationals through to early-stage companies and he has held leadership positions within pharma, medical device, med-tech, and consumer markets. He is a strong visionary, process driven leader, able to craft a vision and motivate teams to achieve superior results and recognized by such companies as Allergan,Bristol Myers Squibb , Teva &Pharmascience for outstanding performance in creating value. He has cross functional experience in product life cycle management, sales, BD&L, market access, marketing, finance & M&A.
Second Quarter 2024 Subsequent Events
- In
May 2024 , the Company confirmed that the effective date of termination regarding the XIIDRA partial termination agreement previously entered into was set atMay 30, 2024 , rather than the date of the marketing authorization transfer; and - In
June 2024 , the Company announced the restructuring of its respiratory commercial field operations aimed at reducing its operating expenses, aligning its commercial infrastructure with current market dynamic and accelerating its path to profitability with cost reduction measures, affecting approximately 20% of its workforce, to decrease its operating expenses by more than$5 million on an annualized basis.
Second Quarter 2024 Webcast and Conference Call
Valeo will host a conference call to discuss its second quarter 2024 results and highlights on
A live audio webcast of the conference call will be available via:
https://app.webinar.net/lmwv2P42DyQ
Financial Statements and MD&A
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