Revenue forecast from existing product pipeline (source: Valeo presentation)

Valeo Pharma Inc. (CSE: VPH) is a Canadian specialty pharmaceutical company with big pharma capabilities while retaining small company flexibilities.

Valeo Pharma Inc. (CSE:VPH)

NEW YORK, NY, USA, May 19, 2020 /EINPresswire.com/ -- Valeo Pharma Inc. (CSE: VPH) is a fully integrated specialty pharmaceutical company focused on in-licensing prescription drugs for the Canadian market, it is the subject of a Technology Journal review that may be seen at https://technologymarketwatch.com/vph.htm online. The Company acquires the Canadian rights from international drug manufacturers wanting access to the Canadian markets without the hassle. Valeo is not a developer of drugs (thus no big R&D expenditure and risk), it does everything that a big pharmaceutical company does after it develops a drug, to make it a commercial success. 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 on commercial stage, innovative and proprietary drugs targeting three therapeutic areas; 1) Neurodegenerative diseases, 2) Oncology, and 3) Hospital Specialty Products. Valeo targets areas where it can be highly impactful marketing-wise with a limited/streamlined sales team (e.g. of the ~900 neurologists in Canada, less than 10% are the key initiators of initial prescriptions). The Company has recently added proprietary branded-products with significant growth potential that are expected to dramatically increase revenues. Its pipeline over the coming months and years should see additional robust growth as the Company's goal of becoming a dominant player in its targeted therapeutic fields is increasingly realized.
 
Shares of Valero Pharma Inc. trade on the Canadian Securities Exchange under the symbol VPH (began trading in February 2019). Looking at price-to-sales ratio metrics relative to the coming pipeline, shares of VPH are expected to experience solid price appreciation as revenue projections come to fruition, and certainly higher as news develops regarding additions to the pipeline.
 
Valeo is set to achieve breakeven this 2020, and accelerate 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) REDESCA^®, a low molecular weight heparin biosimilar used to prevent deep vein thrombosis and pulmonary embolism (scheduled for approval in Canada in Fall 2020, with marketing beginning in early 2021).

Growing Portfolio of Products
 Valeo currently markets 5 products including:
 
• Onstryv^®: - Launched July 2019, estimated peak sales of $8M - $12M/annum.
• Ondansetron ODT: - Q4-2010 launch, estimated peak sales of $2M - $3M/annum.
• M-Eslon^®: - Estimated peak sales of $7M - $8M/annum.

Valeo expects 4 more product launches in the coming quarters:
• AmetopTM: - Q3-2020 launch, estimated peak sales of $1M - $2M/annum.
• Yondelis^®: - Q4-2020 launch, estimated peak sales of $2M - $4M/annum.
• Sodium Ethacrynate: - Q4-2020 launch, estimated peak sales of $1M - $2M/annum.
• Redesca^®: - Q1-2021 launch, estimated peak sales of $30M - $40M/annum.

Figure 1. (seen accompanying this article) - Revenue forecast from existing pipeline (sourced from recent Company presentation). Even thru the recent COVID-19 pandemic we expect Valeo's sales to continue rising, and manufacturers of its products to remain in production -- Valeo has extended lead times, and the sales teams are looking forward to getting back to more traditional physician interactions. The projections seen above are presented with strong confidence; since Valeo does not have R&D (as it's m.o. is to source existing drugs developed and approved outside of Canada), it substitutes R&D for enhanced BD (Business Development), scientific research, and financial modeling to ensure its has a proper fit for access and success in the Canadian marketplace well before a deal is inked. The clear objective is to become a $100M+ company based just upon what products Valeo already has now and in-licensing activities anticipated within the next 3 - 4 years. There are other opportunities, such as product acquisitions, that are not yet factored-in that can get Valeo there quicker and get it higher in terms of revenues. There are a lot of initiatives already underway that should make for some really good catalysts and milestones leading to stock appreciation.

Valeo is "the Little Big Pharma"; All the big pharma capabilities, with all the small company flexibilities.
* Experienced management with value creation track record.
* One of the few fully integrated specialty pharma companies.
* National sales force covering all key prescribing MDs.
* Derisked growth: Commercial stage products, no R&D risks.
* Significant insider ownership means full alignment with shareholders.
* Product Mix of BASE (non-branded products, recurring revenues) and GROWTH products (proprietary branded products with growth potential in Neurology/CNS, Oncology, Hospital Specialty).

See the full Technology Journal at https://technologymarketwatch.com/vph.htm online.

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Fredrick William
Technology MarketWatch Journal
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