Valeo (EPA:VLOF) Pharma Inc. (TSX:VPH, OTCQB:VPHIF) said it has entered into a commercialization and supply agreement with Novartis Pharmaceuticals Canada Inc for the Canadian commercialization of two innovative ophthalmic therapies.
Under the agreement, Valeo becomes the exclusive distributor of XIIDRA (lifitegrast) and SIMBRINZA (brinzolamide / brimonidine tartrate) in Canada, making it responsible for all commercial and medical activities. Both XIIDRA and SIMBRINZA are registered trademarks of Novartis AG. The agreement is effective July 29, 2022, and will continue for an initial term of seven years.
"We are extremely pleased to be expanding our relationship with Novartis with these innovative ophthalmic therapies and adding Ophthalmology as a strategic therapeutic focus for Valeo. XIIDRA and SIMBRINZA will start impacting our revenues in Q4-2022 as we assume all commercial activities in Canada", said Steve Saviuk, CEO of Valeo in a statement.
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"These products have significant upside revenue potential which will be supported by our dedicated Ophthalmic commercial unit. The addition of these products significantly increases our revenue base and accelerates our drive to profitability," he added.
XIIDRA is a prescription eye drop solution for the treatment of the signs and symptoms of dry eye disease while SIMBRINZA is a prescription eye drop solution for the reduction of intraocular pressure in adult patients with open-angle glaucoma or ocular hypertension.
"This second agreement with Valeo Pharma fits with our overall strategy to provide innovative medicines that have the potential to improve health outcomes," said Andrea Marazzi, country president, Novartis Pharmaceuticals Canada Inc. "We have seen Valeo's commitment and focus in delivering on patient needs in the respiratory space and now, by bringing XIIDRA and SIMBRINZA into their portfolio, they will be able to help improve the vision of numerous Canadians."
It is estimated that around 21% of Canadians experience ocular symptoms associated with dry eye and 400,000 Canadians suffer from glaucoma, with open-angle glaucoma accounting for 95% of the cases.
Commenting on the agreement, Frederic Fasano, Valeo's president and COO said: "The addition of XIIDRA and SIMBRINZA in our product portfolio is allowing us to enter a new strategic therapeutic area with large unmet medical needs and a rich R&D pipeline of innovative treatments. With two very high-quality products, supported by outstanding phase III clinical data, Valeo will gain expertise and build competitive infrastructure to become a major player in this area. We look forward to rapidly getting our medical and commercial team to work with the scientific and medical community to support access to XIIDRA and SIMBRINZA for the overall benefit of Canadian patients."
Separately, Valeo said it will host a conference call to discuss the $40 million non-dilutive financing and new products commercialization and supply transactions on Tuesday, August 2, 2022, at 9.30am ET.
The telephone numbers to access the conference call are 416-764-8659 and 1-888-664-6392. For an audio replay, the numbers are 416-764-8677 and 1-888-390-0541 using the access code (292407 #). A live audio webcast of the conference call will be available here.
Contact the author at jon.hopkins@proactiveinvestors.com