AGORACOM Small-cap Investor Relations Blog

Valeo Pharma is already a successful, revenue generating, small cap Canadian pharmaceutical company that acquires the Canadian rights to commercialized drugs in other parts of the world that don’t have Canada on their radar as a target market.

This “in-license” business model is ingenious because it means ZERO developmental or clinical risk, which is the downfall of most small cap pharma companies. 

This model has resulted in the following success:

• $5.3M in revenues in the first 9 months of 2020 (ending July 31, 2020)
• 9 products currently in the market with an annual estimated peak sales of $40M/year
• 7 products in the pipeline with an annual estimated peak sales of $45M/year

In fact, capital markets confidence is so high that Valeo secured $8.6M in financing in the last half of the year with:

• $6.9M Bought Deal financing at $1.20/shares
• A $1.7M Oversubscribed debenture (non-convertible) 

If that was all Valeo had, most investors would be happy to sit back and watch the Company grow.

But then came Redesca.  We are going to save you the science and tell you that Redesca belongs to a class of anticoagulant medications (blood thinners) called LMWH.  The size of the Canadian LMWH market is over $200M per year and Valeo believes they can capture 15-30% of this market.  If you’re doing back of napkin math, that equates to $30,000,000 – $60,000,000 per year in revenues.

But how does a new product capture that much market share?  Glad you asked because we asked CEO Steve Saviuk the same question.  Competition is tough in all markets and they don’t let someone take 15-30% market share without one hell of a fight. 

Saviuk agreed and gave the following reasons:

1.  Redesca has an 8-year international track record of safety and efficacy.  It is already well known

2. Redesca is flat out cheaper, which is music to the ears of Provincial Health Ministries whose budgets have been stretched to the max this year no thanks to COVID-19.  

Vaelo is so confident that it stated “This is great news for the Canadian healthcare system …. and is expected to help provide significant savings to provincial healthcare systems.”

Well there you have it.  Valeo is a great story. Watch the video.

HOLD ON. THERE’S MORE … A LOT MORE

In a recently issued newsletter by MDBriefCase entitled “Exploring Novel Therapeutic Approaches for Covid-19: Hesperidin vs Vitamin C” the newsletter stated that recently accumulated evidence suggests that Hesperidin supplementation may be useful as a prophylactic agent against SARS-Cov-2 infection and as a complementary treatment during COVID-19 disease.  What does this mean?

• Growing body of research suggests Hesperidin may interfere with SARS-CoV-2 infection process
• Hesperidin may help against Covid-19 viral replication
• Hesperidin is a potent antioxidant with anti-inflammatory activity that may help in controlling cytokine storm (where the body starts to attack its own cells and tissue rather than just the virus)
• Valeo’s unique Hesperidin formulation (HESPERCO) is the only format available where every capsule contains 500mg of concentrated Hesperidin.

Now you have it.  That’s the Valeo story as it applies to just 2 of their amazing products.  There is a whole lot more to the story given their pipeline of products but we couldn’t cover it all in this great interview with CEO Steve Saviuk.

If you love revenue generating, growing and blue sky potential small cap companies, then this Valeo interview is a must watch.