Valeo Pharma (VPH) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues were CAD 12.6 million, down 11% year-over-year, mainly due to the loss or termination of Xiidra commercialization, but core business/brands grew 9% year-over-year.

• Adjusted EBITDA loss improved to CAD 1.5 million in Q3 2024 from CAD 2.5 million in Q3 2023, a 40% reduction.

• Net loss increased to CAD 8.2 million in Q3 2024 from CAD 5.8 million in Q3 2023, driven by Xiidra loss and restructuring costs.

• Cost-saving initiatives and restructuring since late 2023 have begun to materialize, with further improvements expected.

• Enerzair and Atectura prescriptions rose 74% year-over-year, with prescribing physicians up 71%.

Financial highlights

• Q3 2024 gross profit was CAD 3.9 million, down 12% from CAD 4.4 million in Q3 2023, mainly due to Xiidra transfer.

• Adjusted EBITDA loss improved to CAD 1.5 million in Q3 2024 from CAD 2.5 million in Q3 2023.

• Net loss increased to CAD 8.2 million in Q3 2024 from CAD 5.8 million in Q3 2023, impacted by lower gross profit and CAD 1.6 million in restructuring costs.

• Year-to-date revenues were CAD 40.3 million, nearly flat versus CAD 40.8 million in the prior year.

• Year-to-date adjusted EBITDA loss improved 5% to CAD 6.1 million.

Outlook and guidance

• Continued revenue growth expected from core therapeutic assets/brands and further OpEx reductions.

• Targeting EBITDA positive in Q1 2025.

• Cost reduction measures from respiratory business restructuring expected to decrease annual operating expenses by over CAD 5 million.

• Anticipates further growth in REDESCA as Ontario market impact materializes.

• Ongoing business development to expand the ophthalmology portfolio.