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Be the first with the news that moves the market- Valeo Pharma (CSE:VPH) has bumped its revenue by 34 per cent in 2020’s first quarter but is still maintaining steady losses month to month
- The company generated a net loss of C$1.1 million in the last quarter of 2019, compared to a similar loss of $1 million in 2018
- Valeo attributes the rise in revenue to higher prescriptions of its Onstryv drug, which treats Parkinson’s disease
- The company believes that Onstryv’s improving performance and two other product launches this year will improve cashflow over 2020
- Valeo Pharma (VPH) is down 15.62 per cent, with shares trading for C$0.27 and market cap of $15.3 million.
Valeo Pharma (CSE:VPH) has bumped its revenue in 2020’s first quarter but is still maintaining steady losses month to month.
In its first quarterly report of 2020, revenue has improved 34 per cent to C$1.7 million. However, the company generated a net loss of $1.1 million, compared to a similar loss of $1 million in 2018.
It seems the substantial increase in revenue is failing to affect the company’s bottom line.
Valeo attributes the rise in revenue to higher prescriptions of its Onstryv drug in recent months. The drug treats Parkinson’s disease by alleviating motor control issues and was approved by Canadian officials last year.
Despite the sustained losses, the company believes that Onstryv’s improving performance and two other product launches this year will improve cashflow over 2020.
President and CEO of Valeo, Steve Saviuk, remains confident about the coming quarters.
“We are pleased to see that new products launched during recent quarters are now contributing to the growth of our revenues.
“Prescriptions for Onstryv are growing on a monthly basis reflecting its strong medical benefits. We expect strong quarterly growth of Onstryv sales in 2020 and beyond as private and public reimbursement for this novel drug expands,” he said.
The quarterly report went on address the COVID-19 pandemic and its ongoing economic effects.
Continued pressure on healthcare systems worldwide may impact the company’s supply chains moving forward. However, the company was quick to point out that it has not yet felt any material impacts caused by the outbreak.
This latest quarterly report follows the pattern set by the company’s full year 2019 report, which was released late last month. While revenue in 2019 was up 50 per cent, the company still reported a net loss of $3.6 million in 2019 compared to $2.4 million in 2018.
Since announcing the full-year results in February, the company’s market share has fallen by around 40 per cent.
Valeo Pharma (VPH) is down 15.62 per cent, with shares trading for $0.27 at 10:57am EST.
