Valeo Pharma Blood Thinner Approval Projected To Thicken Revenues By $30 MILLION Per Year (Not A Typo)

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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  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.” Well there you have it.  Valeo is a great story. Watch the video. HOLD ON. THERE’S MORE … A LOT MORE In addition to being used primarily for treating and preventing deep  vein thrombosis and pulmonary embolism, LMWH are also now increasingly  used as a first line of defense tool in the fight against Covid-19. The World Health Organization’s (“WHO”) issued guidance regarding the  prophylaxis use of LMWH to help prevent complications in the clinical  management of severe acute respiratory infections when COVID-19  infection is suspected. The Canadian market for LMWH was already at a healthy $200M + per  year when Valeo started down the Redesca path 4 years ago.  Now it gets  the added kicker of Redesca being a first line of defense to fight  COVID-19. Now you have it.  That’s the Valeo story as it applies to Redesca.   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.

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