Valeo Pharma (VPH) investor relations material

Executive summary

• Q3 2024 revenues were CAD 12.6 million, down 11% year-over-year, mainly due to the loss or termination of Xiidra commercialization, but core business/brands grew 9% year-over-year.

• Adjusted EBITDA loss improved to CAD 1.5 million in Q3 2024 from CAD 2.5 million in Q3 2023, a 40% reduction.

• Net loss for Q3 2024 was CAD 8.2 million, a 40% increase from Q3 2023, impacted by Xiidra loss and restructuring costs.

• Cost-saving initiatives and restructuring have been implemented, with further OpEx reductions expected.

• Enerzair and Atectura prescriptions rose 74% year-over-year, with prescribing physicians up 71%.

Financial highlights

• Q3 2024 adjusted gross profit was CAD 3.9 million, down 12% year-over-year, mainly due to Xiidra transfer.

• Year-to-date revenues were CAD 40.3 million, nearly flat compared to the prior year.

• Year-to-date adjusted EBITDA loss improved 5% to CAD 6.1 million.

• Year-to-date net loss was CAD 22.9 million, up from CAD 18.6 million the prior year.

• Year-to-date adjusted gross profit was CAD 11.2 million, down 14% year-over-year.

Outlook and guidance

• Continued revenue growth expected from core therapeutic assets and further OpEx reductions.

• Targeting EBITDA positive in Q1 2025.

• Cost reduction measures from respiratory business restructuring expected to decrease annual operating expenses by over CAD 5 million.

• Anticipates explosive growth for REDESCA as Ontario market impact materializes in coming quarters.

• Ongoing business development to expand the ophthalmology portfolio.