/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
- Original commercialization and supply agreement amended
following global divestment of XIIDRA®
- SIMBRINZA® remains under Valeo Pharma exclusive promotion
and distribution
- Proceeds from reimbursement to be used for debt reduction
purposes
- Sagard credit facility
amended to provide for early repayments and liquidity requirements
in fiscal 2024
MONTREAL, Feb. 2, 2024
/CNW/ - Valeo Pharma Inc. (TSX: VPH) (OTCQB: VPHIF) (FSE:
VP2) ("Valeo"), a Canadian pharmaceutical company, announced today
that it has entered into an amendment (the "Amendment") of its
7-year Commercialization and Supply Agreement (the
"Commercialization and Supply Agreement") of XIIDRA® and
SIMBRINZA® originally entered into with Novartis Pharmaceuticals
Canada Inc. ("Novartis") in July
2022. For sake of clarity SIMBRINZA® is a registered
trademark of Novartis AG while XIIDRA® is a registered trademark of
Bausch and Lomb. The use of both trademarks has been authorized
only in the context of this press release.
As per the Amendment, Valeo will continue to distribute XIIDRA®
for the entire transition period, until certain regulatory
transfers have been received by the XIIDRA® global purchaser
(''Effective Date of Termination"). The transition period is
expected to continue until approximately Q3-2024.
Valeo will continue to commercialize and promote SIMBRINZA® on
an exclusive basis as provided by the Commercial and Supply
Agreement with Novartis.
Within 60 days from the Effective Date of Termination, Valeo
will be entitled to a reimbursement of a residual portion of the
upfront fee paid by Valeo at the time it entered into the
Commercialization and Supply Agreement, such reimbursement will be
offset by a financial reconciliation with Novartis (the
"Reimbursement"). The amount to be received as Reimbursement, when
received, will be used for partial repayment of the Secured Term
Loan (the "Facility'') entered into between Valeo and Sagard
Healthcare Royalty Partners, LP ("Sagard") in July 2022.
Valeo also announced that it has entered into an agreement with
Sagard which is amending the
Facility (the "Sagard Amendment"), to provide, among other things,
for accelerated debt repayment of the Facility. Under the Sagard
Amendment, Valeo will be required to make a first repayment of
$10 million by August 31, 2024 (the "First Repayment"). Under
the Sagard Amendment, Valeo will have the option (the "Repayment
Option") at its discretion until August 31,
2024, to make an additional repayment of US$5 million
under the Facility, which amount is currently held in a restricted
cash account. Both repayments will be subject to contractually
agreed prepayment and exit fees. In addition, under the Sagard
Amendment, if Valeo elects to proceed with the Repayment Option,
the minimum liquidity and cash balance requirements under the
Facility have been set at $2 million
in cash or cash equivalents.
Corrective Statements
During the fourth quarter 2023 analyst call held on Tuesday January 30, 2024, Mr. Steve Saviuk,
the Chief Executive Officer of Valeo, mentioned that the
Reimbursement would be expected to be redeployed to other revenue
generating ophthalmology assets. It should be
noted that the net amount to be received as
Reimbursement will not be used for the acquisition of new
ophthalmology assets but will be used to fund a portion of the
First Repayment.
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 statements in this press release include, but
are not limited to, statements and information regarding Valeo's
activities during the transition period, the duration of the
transition period, the timing for the Effective Date of Termination
to occur, the timing for the receipt of the Reimbursement from
Novartis and the use of proceeds thereof, Valeo continuing to
commercialize SIMBRINZA®, the occurrence of the First
Repayment, and the exercise and timing of the Repayment
Option. Such forward-looking statements are based on a number of
material factors and assumptions, including, but not limited to our
ability to carry on development activities, the timely receipt of
required approvals and our ability to obtain financing as and when
required and on reasonable terms.
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.