Valeo Pharma Inc. · OTC:VPHIF
Valeo Pharma — Investor Presentation (December 2023)
28 slides from Valeo Pharma's investor presentation, December 2023
Slide 1: Investor Presentation December 2023
Bringing Healthcare Innovation to Canadians Investor Presentation December 2023 TSX: VPH
Slide 2: Forward-Looking Statements
Forward-Looking Statements: This presentation, including the documents incorporated by reference herein, contains “forward-looking information” as defined under Canadian securities laws (collectively, “forward-looking statements”). All statements other than statements of historical fact contained in
Slide 3: Company Overview
Company Overview ➢ Fast-growing Canadian pharma company (Mtl H.O.) ➢ License/acquire Canadian rights to commercial prescription drugs ➢ 8X revenue growth (2020-2023) / Significant leverage built-in for continued growth ➢ Pan-Canadian presence & coverage ➢ H.O. supported commercial infrastructure ➢ 1
Slide 4: Focus
Focus ➢ 3 Therapeutics Areas: - Respiratory / Allergy - Ophthalmology - Hospital Specialty Products ➢ 6 High Growth Assets: - Asthma: Enerzair / Atectura - Allergy: Allerject - Ophtha: Xiidra / Simbrinza - Hospital: Redesca ➢ Canada: - 12K MDs - 250 Hospitals - 50K + visits / year TSX:VPH PAGE 4
Slide 5: Priorities
Priorities ➢ Continued quarterly revenue growth @ Q3-23: - 7th consecutive Qtr of revenue growth - 5th consecutive Qtr of record revenues ➢ Accelerate path to profitability: - 6 consecutive Qtr of declining adj. EBITDA loss prior to Q3-23 - YTD-23 adj. EBITDA loss -45% vs YTD 22 ($6.4M vs $11.6M) ➢
Slide 6: 2021-2022: Transformative Product Additions
2021-2022: Transformative Product Additions Revenues ($M) 100 $95M 80 $70M 60 $55M 40 $27.7M 20 $13.6M $7.5M 0 FY 20 A FY 21 A FY 22 A FY 23 F FY 24 F FY 25 F Spec./Hosp. Ophthalmology Respiratory VALUE PROPOSITION: Significant Operating Leverage available with nominal additional costs TSX:VPH PAGE
Slide 7: Diversified Portfolio: Significant Growth Potential Ahead
Diversified Portfolio: Significant Growth Potential Ahead ENERZAIR ATECTURA ALLERJECT XIIDRA SIMBRINZA REDESCA OTHERS 0 10 20 30 40 50 60 70 80 90 2023 Estimated Sales ($M) Peak Sales Potential ($M) TSX:VPH PAGE 7
Slide 8: Respiratory / Allergy Business Unit
Bringing Healthcare Innovation to Canadians Respiratory / Allergy Business Unit TSX: VPH
Slide 9: Asthma: Canadian Market Dynamics
Asthma: Canadian Market Dynamics ➢ 3.8 million Canadian asthma sufferers ➢ 1 million Suffer from moderate to severe ➢ ~ 50% Suffer from poor symptoms control $800M* TRIPLE agents (Corticosteroids + DUAL agents (Corticosteroids + 2 Bronchodilators) ~$220M Bronchodilator) ~$330M Single Agent Dual Agen
Slide 10: Asthma: Enerzair / Atectura
ASTHMA: ENERZAIR / ATECTURA Launched in Q4-21 Triple Agent Therapy triple combination First in Class ICS/LABA/LAMA 350K Targeted patients population $80M + Peak sales 42% reduction in exacerbations vs Advair Fully reimbursed (Private & Public) Launched in Q4-21 Dual Agent Therapy Dual combination LA
Slide 11: Enerzair: Benefits of triple therapy
Enerzair: Benefits of triple therapy TSX:VPH PAGE 11
Slide 12: Enerzair / Atectura: Prescription Trends (Oct. 2023)
Enerzair / Atectura: Prescription Trends (0ct. 2023) # of Prescribers # of Prescriptions 3,500 80,000 2,967 3,000 2,825 70,000 67,234 2,668 63,470 2,503 59,954 2,500 2,361 60,000 56,021 2,208 52,367 2,036 48,813 1,889 50,000 45,031 2,000 41,329 1,724 1,582 40,000 37,508 1,500 1,429 32,89933,917 1,28
Slide 13: Distribution of new scripts by brands
Distribution of new scripts by brands Asthma - NBRx MS % 60% 50% 40% 30% 20% 10% 0% Breztri Trelegy Ellipta Spiriva Respimat Advair + Gx Zenhale Breo Ellipta Atectura/Enerzair Symbicort Apr-22 Oct-22 Apr-23 Oct-23 TSX:VPH PAGE 13
Slide 14: Allergy/Severe Reactions: ALLERJECT
Allergy/Severe Reactions: ALLERJECT® Target market: 1M units / YR Market Size: $80M + / CAGR 5-8% Peak Sales: $25M / 30% market share Features Epipen (Market leader) Allerject Annual Revenues $75-80M $4-5M Pricing $95-105 Same Reimbursement 75% coverage Same Voice assisted No Yes FDA Guidance for De
Slide 15: Ophthalmology Business Unit
Bringing Healthcare Innovation to Canadians Ophthalmology Business Unit TSX: VPH
Slide 16: Ophthalmology Products
Ophthalmology Products Launched in Q4-22 Target market: 8M people, 2% treated with Rx, 1,200 ophthalmologists $80M market size Current market share: 24% Market CAGR: 5-6% *Sold to Bausch & Lomb Launched in Q4-22 Target market: 400,000 Canadians, 1,200 ophthalmologists $60M market size Current market
Slide 17: Specialty Products Business Unit
Bringing Healthcare Innovation to Canadians Specialty Products Business Unit TSX: VPH
Slide 18: Low Molecular Weight Heparin (LMWH)
Low Molecular Weight Heparin (LMWH) LMWH: Class of anticoagulant medications Usage: Prevention of blood clots & treatment of deep vein thrombosis & pulmonary embolism Heparins: Dalteparin, Tinzaparin, Enoxaparin Biosimilars: Dalteparin: No Biosimilars Tinzaparin: No Biosimilars Enoxaparin: Redesca (
Slide 19: Low Molecular Weight Heparin: Canadian Market in $M
Low Molecular Weight Heparin: Canadian Market in $M (Aug. 23) Region Dalteparin Enoxaparin Tinzaparin Total BC 6 6 1 13 Prairies 6 2 17 25 Ontario 39 26 11 76 Quebec 22 13 9 44 Atlantic 7 5 - 12 CDN Total per 80 52 38 170 LMWH ➢ LMWH: $170M in Canada ➢ Ontario & Quebec: 70% of CDN market together ➢
Slide 20: Enoxaparin & Biosimilars: Canadian Market in $M
Enoxaparin & Biosimilars: Canadian Market in $M (Aug. 23) Region Lovenox Redesca Inclunox Noromby Elonox Total BC 1 1 4 - - 6 Prairies 1 1 - - - 2 Ontario 23 2 1 - - 26 Quebec 1 7 1 3 - 13 Atlantic 4 1 - - - 5 CDN Total 30 12 6 3 0.06 ~ 52 per Enox. ➢ Redesca: # 1 biosimilar in Canada ➢ Redesca: 25%
Slide 21: Redesca (Biosimilar)
Redesca® (Biosimilar) LMWH Biosimilar Market insight: Sept.-23 Monthly - IQVIA Launched in Q1-21 Target market: $170M 100% $25M Peak sales 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul
Slide 22: Financials & Summary
Financials & Summary TSX: VPH
Slide 23: Last 8 Qtrs Net Revenues by Business Units
23 Last 8 Qtrs Net Revenues by Business Units Sales by Business Units 15,000 • 7th consecutive quarterly revenue growth 12,000 • 5th consecutive quarterly RECORD revenue 9,000 • Specialty / Base revenues trending up 6,000 • Growing Revenues from Respiratory/Allergy (Allerject 3,000 added in Q4-22) •
Slide 24: Sequential Gross Margin Improvement
Sequential Gross Margin Improvement Adj. GM vs OPEX (before samples) 9,000 80% 69% 70% 8,000 70% 7,000 58% 60% 6,000 48% 50% 43% 5,000 40% 4,000 32% 30% 3,000 24% 20% 2,000 12% 1,000 10% - 0% Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Adjusted GP OPEX less Samples % AGM vs OPEX less samples TSX
Slide 25: Capital Structure
Capital Structure, (at Dec. 12, 2023) CAPITALIZATION MILLIONS Shares Outstanding (Share Price - $0.18) 98.6 Options/RSUs (avg. price, $0.59) 6,7 Management & Insiders Warrants (avg. strike price $0.89) 19,7 aligned with Convertible debentures ($25.0M) 21.7 shareholders. Fully-Diluted Shares Outstand
Slide 26: Leadership
Leadership Management Board of Directors Richard J. MacKay Richard Lajoie Chairman Board Member Steve Saviuk Former Vice-Chairman of Former President Bausch Health Founder, CEO, since 2003 Stiefel Laboratories Canada Former President Ortho Dermatologics US, Steve Saviuk Novartis Canada Founder, CEO
Slide 27: Investment Summary
Investment Summary ➢ Industry leading topline growth 2023, and beyond ➢ Commercial focus (no R&D / clinical trials) ➢ 6 growth assets launched/acquired last 2 yrs. ➢ Product portfolio peak sales potential ≥ $230M ➢ Significant operating leverage already built-in ➢ Active BD&L efforts for additional
Slide 28: Contact Us
Contact Us PHONE 514-694-0150 EMAIL ir@valeopharma.com WEB www.valeopharma.com