Valeo Pharma Inc (TSX: VPH), a Canadian pharmaceutical company, recently announced a 3% increase in revenues for the three-month period ending in January. This growth amounted to $13.5 million, up from $13.1 million in the same quarter of the previous year. The increase in revenue was mainly driven by higher sales of key products such as Allerject, Redesca injectable anticoagulant, and Simbrinza prescription eye drops.
The adjusted gross profit for the period was $3.9 million, showing an 81% increase from the previous quarter’s $2.1 million. However, there was a slight decrease compared to the same period last year, attributed to reduced promotional activities for Xiidra prescription eye drops.
Despite the revenue growth, Valeo reported a net loss for the quarter of $6.9 million, compared to $6.2 million in the previous year. The adjusted loss on earnings before interest, taxation, depreciation, and amortization (EBITDA) was $2.1 million, down 6% from the same period last year and significantly lower than the previous quarter.
To move towards profitability, Valeo announced cost-reduction initiatives in November, aiming to decrease operating expenses by over $2 million per year through organizational restructuring and streamlined commercial support activities. The company emphasized the importance of timely decision-making to maximize commercial activities and achieve sustainable profitability.
These changes were led by newly-appointed chief financial officer Pascal Tougas, a seasoned pharmaceutical executive with expertise in corporate strategy and financial management. Additionally, Valeo revamped its board with the departure of four directors and the addition of industry experts Richard Lajoie, Robert Raich, and Charles Bisaillon.
