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VALEO PHARMA ANNOUNCES RESTRUCTURING OF COMMERCIAL FIELD OPERATIONS TO SUPPORT PATH TO PROFITABILITY

  • Changes to respiratory business unit to generate more than $5 million in annual savings



  • Follows previously announced cost saving measures exceeding $2 million 



  • Restructuring charges to be incurred in Q3-24



  • Cost reduction initiatives are aimed at improving margins, significantly reducing operating expenses to accelerate path to profitability

MONTREAL, June 13, 2024 /CNW/ - Valeo Pharma Inc. (TSX: VPH) (OTCQB: VPHIF) (FSE: VP2) ("Valeo" or the "Company"), a Canadian pharmaceutical company, today announced that it has undertaken a restructuring of its commercial field operations aimed at improving margins, reducing operating expenses, aligning its commercial infrastructure with current market dynamics and accelerating its path to profitability.

Valeo expects these cost reduction measures, including an approximate 20% downsizing of its workforce, will decrease its operating expenses by more than $5.0 million on an annualized basis. Combined with the previously implemented cost reduction measures announced in November 2023, total annualized costs savings from all measures will exceed $7.0 million.

"Although this restructuring was primarily focused on our Respiratory Group, we remain fully committed to our three specialty units, respiratory, ophthalmic and hospital. We felt that a leaner, more focused approach was needed to ensure the continued revenue growth for our key products while providing important cost efficiencies that will allow us to achieve profitability as quickly as possible. These changes, as well as those cost reductions we announced earlier in our fiscal year, are key elements towards improving our operating results and overall financial performance", said Steve Saviuk, Valeo's CEO. "While this restructuring provides us with a sustainable operating structure from which we will continue to grow, the decision to implement these challenging but necessary changes affects many Valeo employees.  We would like to express our sincere gratitude to all the employees affected for their dedication and contributions made over the years."

About Valeo Pharma Inc.

Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory/Allergy, Ophthalmology and Hospital Specialty Products. Headquartered in Kirkland, Quebec Valeo Pharma has all the required capabilities and the full infrastructure to register and properly manage its growing product portfolio through all stages of commercialization. For more information, please visit www.valeopharma.com and follow us on LinkedIn and Twitter.

Forward Looking Statements

Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.                     

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: reliance on third-party suppliers and manufacturers, the availability of additional funding, common risks for pharmaceutical products, including product liability claims, insurance and recalls, registration risks in certain jurisdictions, the inability to implement Valeo's strategy to grow the business, dependence on key management personnel and executives, competition, currency fluctuations and the risks, uncertainties and other factors contained in the section entitled "Risk Factors" in Valeo's annual information form dated January 29, 2024, a copy of which is available on Valeo's Sedar+ profile at www.sedarplus.ca.

Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect Valeo's business, or if Valeo's estimates or assumptions turn out to be inaccurate. Valeo undertakes no obligation to update publicly, or otherwise revise, any forward-looking statements, whether as a result of new information or future events or otherwise, except as may be required by law. If Valeo does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

SOURCE Valeo Pharma Inc.

By: PR Newswire Association LLC. - 13 Jun 2024
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