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Pharma Co. Won't See Bump in Sales From New COVID Drug

Source: Dr. Andre Uddin

 

November 21, 2022 (Investorideas.com Newswire) The U.S. Food and Drug Administration Advisory Panel denied the approval of this therapeutic for patients hospitalized with severe SARS-CoV-2, yet it is still a Buy, noted a Research Capital Corp. report.


The drug candidate for severe COVID-19, sabizabulin, to which Valeo Pharma Inc. (VPH:TSX; VPHIF:OTCQB) owns the Canadian rights, was rejected by the U.S. Food and Drug Administration (FDA), allegedly due to questions about the main clinical trial, reported Research Capital Corp. analyst, Dr. Andre Uddin, in a November 10, 2022 research note.

As such, it is likely Health Canada will not approve sabizabulin for this indication either.

All is not lost for Valeo. However, Uddin noted, given its product portfolio.

"Despite this decision by the FDA panel," Uddin added, "we believe Valeo should have a hockey stick ramp in the next few years with the rollout of its new in-licensed products."

The FDA's vote was eight to five to not greenlight Veru Inc.'s drug candidate for hospitalized COVID patients with a high risk of developing acute respiratory distress syndrome, Uddin relayed.

Accordingly, Research Capital lowered its 2023 revenue estimates on Valeo to CA$61.7 million (CA$61.7M) from CA$73M.

This compares to the Canadian specialty pharma firm's most recent guidance for 2023, of CA$63M.

The investment firm, though, maintained its Speculative Buy rating and CA$1 per share target price on Valeo, the stock of which is currently trading at about CA$0.28 per share.

Disclosures:

1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

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Disclosures For Research Capital Corp., Valeo Pharma Inc., November 10, 2022

Analyst Certification: I, Andre Uddin, Ph.D., certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

General Disclosures: The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.

Potential Conflicts of Interest: All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

RCC USA: Information about Research Capital Corporation's Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.ca

The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA).

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