Valeo Pharma (VPH:TSXV) Drug Projected To Add $30M / Year Revenue Gets Ontario Public Drug Coverage

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:

• 2020 net revenues of $7.5 million
• 2021 is expected to double to $15 million
• Commercializing Novartis Asthma Therapies In Canada
• Closed $6.6 Million Financing With Insiders Taking ~ 40%

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 15-20% of this market. If you're doing back of napkin math, that equates to $30,000,000 - $40,000,000 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 15-20% market share without one hell of a fight. Saviuk agreed and gave the following 3 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."

More than just lip service, $VPH just announced that Redesca is now listed on the Ontario Public Drug Program, which means the government will cover its costs for all public use. Moreover, $VPH expects additional Provinces to follow.

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