 Are you tired of watching boring old press releases? Then you've come to the right place, the right channel, the number one channel for CEO interviews and company overviews. Welcome to Rich TV Live, subscribe to our channel and make sure to hit the like button on our videos to help with the YouTube algorithm for more information and in-depth discussions and analysis, join our trading club at richpigsdaily.com and don't forget to subscribe and hit the bell for notifications to get alerted when our next CEO interview is released so you can discover the next 10-bagger. Hi, how's everybody doing today? I'm your host, Rich, here to have a Rich TV Live with our very special guest, Steve Saviek, the CEO of Valeo Pharma. How are you doing today, Steve? Rich, I'm doing great and it's wonderful to be back on your show. Love having you on the show. I believe that your company is extremely undervalued, under-appreciated, under-exposed and let's get into one of the reasons and some of the reasons why. So you've recently reported your best quarter ever, Revenue Eyes, congratulations. Thank you, thank you. And you also provided even better guidance for the upcoming Q3 quarter results. Does that mean that the revenue growth that is expected has started for good? I believe so. I think the revenue that we just reported for the second quarter, as you mentioned was our best revenue quarter ever and with that in perspective, we've been around for 18 years. So that blows back quite some time. But clearly we're in a different frame where a different company today. A lot of that is primarily due to the products that we have. We've launched three new products that have significant revenue potential. They address big markets. And I think this is pushing, pulling us up into being a mid-tier Canadian pharma company. And when I say a mid-tier company, I mean, if we put the Pfizer's and the Merck's at a certain level, we're looking to be that independent company that's in that second tier. So in the same sort of breadth as the HLS is of the world and the dex is of the world, they're in different therapeutic areas than we are. We focus mostly on respiratory, neurology, oncology. And I would, yeah, the third quarter is going to be a very good quarter for us. We're predicting or estimating revenue growth of over 50% from Q2. And the future revenue growth looks very significant. That doesn't mean there won't be little bumps and blips along the way. That's always the case when there are few product launches. There's a lot of things that affect the product launch. And part of it is elements such as when do the provinces start paying for a drug and they don't all pay at the same time. So how quickly does, let's say, Ontario and Quebec and BC come on board? They come on board a couple of months earlier than we expect. Well, that's great. If they come on board a couple of months later, the point is they will come on board. So there could be a little timing issue there, but we're expecting a good third quarter and we expect to beat that in the fourth also. And then for quarters, the next eight quarters after that, that's where forecasting internally. Much on the back of our two asthma drugs and our blood thinner called Redesco, which is actually our biggest drug right now in terms of sales. So it's leading the way in the short term when the asthma drug should start really pulling towards the end of this year. And they've got a long path ahead of them in terms of revenue growth. These two drugs should be combined for 100, 100 plus million over the course of the next four years annually. So they're gonna be the big drivers. Yeah, that's exciting. I remember having you on the show when you were first introducing the product. So it's great to see the sales rolling in. And can you talk a little bit and can you forecast for the year 2021 an estimate overall of what the growth will look like and the revenue will look like for the end of 2021 and what we can expect that would look like going into 2022? Well, 2021, if you remember 2020, we have an October year and we finished the year just slightly less than eight million. We'll more than double that in 2021. Great. So that pushes us into the 16, 17, 18 million. Again, a lot of it will depend on when certain, not on inventory, we have inventory, we have our teams, a lot of it will depend on some of the reimbursement issues that I mentioned, but 16 to 18 looks very doable for us. The year after is our big year. We're looking at 40 plus. And that is, again, a lot on the back of Redesca and which we believe will be a $30 million drug in two or three years time. And also on our asthma drugs, and our asthma drugs, I can't overemphasize the benefits of these drugs. I mean, the clinical benefits that were shown in extensive clinical trials by our partner, Novartis, it leads us to believe that they'll become the standard of care for asthma for moderate to severe asthma patients in Canada. And asthma is a big market in Canada. Almost 4 million Canadians suffer some form of asthma. That's chronic disease. It starts at a very young age. And the market that we target for that specific moderate to severe market is almost $800 million. And it's growing by about two and a half to three and a half percent per year. So it's a big market. We were compared against big drugs in clinical trials. These big drugs we were shown to be better than them clinically. So for a patient with a better control of symptoms, less asthma attacks, or as they call it, exacerbations. So I believe that these drugs will allow us to play with the big boys. These are world-class drugs. And it's a testament to the team at Valeo that we were able to license these drugs and put together a team. We're over 80 people. A year ago, we were about 25. We'll probably be 100 by the end of the year. So we'll have a sales force on a par with the multinational companies in the sense of doctor coverage, coast to coast, sales structure, and we've been added to the management team with the addition of our new president, Fred Pozzano, in January that was before the end of the war as he was done. Fred comes to us from Serbia, Canada, which was a mid-tier international company. And I think the team management and the team in terms of commercial really sets us up well to benefit these products and to really maximize their potential. Now let's talk a little bit about Redesco, which we talked about when you launched it and you've touched a little bit about it, your low-molecular weight heparin biosimilar. It has apparently already generated decent revenues which you touched base on. How quickly can this product ramp up to peak sales? And how much should we forecast? You mentioned 30 million. Can you touch base a little bit more about it? So Redesco is used primarily in hospital, post-surgery or pre-surgery to prevent blood clots and the extremities, which if should they go into, should they leave and go towards your lungs could be quite disastrous for patients. So it's been around that this technology has been around for a while in the sense of low-molecular weight heparin has been used since the mid-90s. It's about a $200 million marketing candidate that's fairly stable and most of that market is in hospital. We launched late April and it did affect a bit our second quarter but we really, we launched it the last two weeks. So we just touched the end of the second quarter. It's really fired up in the third quarter though where we're selling and shipping quite a bit. We have a full sales team again across Canada which is a distinct team from the team that will be marketing our asthma therapies. So we're focusing on the hospital. As I mentioned, 30 million in sales. We look at that, we'll hit that number in between 18 and 24 months. And a big part of that again, as I mentioned earlier is who pays for drugs and provinces typically pay for drugs or private insurance companies pay for drugs. But we announced that Ontario through ODB has already agreed to pay for Redesca at the provincial level. And I think we'll be announcing shortly several other promises are coming on but we expect that by early fall we should have coverage across Canada. And that's one of the key sort of milestones you have to hit for a drug to really start to sell well is to be covered by the major problem. Well, by all promises, you know, we say major promises every promise is important for us. And we're, so I would think that by fiscal 23 that's kind of you'll be in the well into the 20 million range and possibly up to that $30 million range. Again, we have competition. It's not like we're out there alone on this drug. So the competition is certainly trying to fight back and we'll fight back but we have an extremely compelling value proposition and we have a compelling supply proposition. Our partner is one of the largest producers of this type of drug in the world. And so the supply chain is rock solid and looking forward to this growth. We have a good team behind it and we're having a lot of early successes with it. So we're very encouraged. Congratulations on all your success. It's great to see. And you recently launched your two transformative products. You touched based on a little bit the Enors Air Breeze Hiller and the Attic Turra Breeze Hiller Asma drugs. I understand that these two drugs will not ramp up as quickly as Redesca but I also understand that the revenues that they will generate will be a lot higher on a yearly basis. Can you provide more color as to how these two drugs could eventually represent? Again, every drug has its own revenue profile and Redesca has a, being a biosimilar which effectively means there's already entrance to the market. So you've got an established market and you're taking market share away from some of the other competitors. In the case of Enors Air, these are new therapies. So in some ways you're actually building a market. Obviously there's a lot of asthma sufferers out there but you're actually, this is a novel drug. It's actually a combination of three drugs that are used. And this will be the flagship of our asthma products. And it will have a slightly slower ramp at least for the first 12 months until provincial reimbursement is complete. But after that, we expect to see it have a very fast uptake. So first year revenues this year will be interesting but not significant, probably a million plus before our fiscal year end October. The year after we expect that number to drive up substantially. And ultimately what we see is top line sales for Enors Air within five years being about 100 million top line sales for Attic Turra which is a smaller drug. It's a more conventional asthma therapy but still with strong benefits to be about 30, 30, 40 million. So the two combined have that peak sales potential of 140. And I know your viewers are out there and saying, well, you know, how is it? That sounds like a lot of, and how can Steve say that? What's the basis? Well, the basis was the clinical trials that were done. So Enors Air went head to head with one of the standard with care in Canada another asthma drug that's been around for a while. That drug that's $212 million or did $212 million last year. And what we've shown, or what the barters was able to show in their clinical trials was that there was a substantial improvement in patient outcome with Enors Air. So again, we're going up against a big drug but we're going up against a big drug where we've shown that we have stronger clinical results. And these are meaningful for asthma sufferers. Going aside, along with that we have a new business head unit, Howard Wiseman comes to us from the respiratory asthma space very well known in the areas, launched products and very successful. He'll be running that group. So it's key about management of that group. Our sales team is essentially all put in place. Some of them are going through training. Some of them are actually in the field but by August 1st, that entire team of roughly 50 representatives and by seven regional sales directors will be full bore on us. So we'll have the coverage out there. So I think that the team is out there as people and product. And now with this financing that we've just completed also having the resources to support it. So I think we have those three legs of the stool so to speak which is the product, people and the capital resources to launch this product and to support it in the market. And we have already a number of physicians that were involved with the clinical trials that talk very highly about the drug. They will be talking highly about it to their peers through various programs that we'll have in terms of advisory boards and presentations and publications. So we're really excited. This is the launch that we're undertaking is a launch worthy of a big pharma company. And it's on run that people who've been there and done that before. So we're very excited about the future for these two and for Canadians. It's really bringing, moving the needle so to speak in terms of asthma care. Yeah, I love what you guys are doing because this is not just a want. This is a need. People need this. People with asthma need this. So you've also created some new business units you touched on a little bit to maximize the commercial potential of these three transformative products. Can you provide us more color on the new corporate structure? Again, a lot of that came about because of the discussions that I had with our new president Fred Pizzano and we talked about the old value and the way it was structured and how we need to put in a more, I said, I guess a bigger corporate type structure given, and I don't mean that in terms of adding a lot of people just add people, but more structured from the point of view of operating efficiently given the size of our products. Big products require people. They require people on the ground. They require support, our medical team. Our medical team is growing to six people but that's what you need. You need them to support physicians that pharmacists, healthcare professionals, patients that have issues or questions about the product. So in doing so and organizing it, we created two business units, one which will be focused on the respiratory area and the other which will be specialty products. So Redesco have fallen into the specialty basket along with our on-strived Parkinson's drug and along with Yandellis, which is our oncology drug plus several other drugs. So they've been formatted into one which is run by a fellow by the name of Jean-Charles Le Thed who's a very experienced pharmaceutical executive. So he's running that specialty group and Howard is running the respiratory group. And so we're structured for growth. We're structured that we can handle more products. We're structured that we can handle significant sales themes. Managing a sales theme is quite a time consuming and very involved process. And we've got things in place now to grow. So we'll be, as I mentioned, we'll have gone from 25 employees to over 100 by the end of the summer. And again, when you look at the products that we have, we're very excited that this is a company that's gonna grow to $100 plus million of sales in the next four years. And I hope your viewers, so we have the structure, we have the people, we have the products. And again, I go back to the funding also. So all the ingredients are there now it's execution. And that's what I'm spending a lot of and some of the other management team is spending a lot of time on is, how do we get the execution, make sure we're executing, make sure we're able to look at our key performance indicators that we're hitting the number of calls we wanna make with positions that we're getting the right feedback in terms of financially. And I think that's the road to success. That's the road to driving these revenues north. Let's talk a little bit about the sales reps. So you touched base on your growing your sales reps. How many sale reps do you have now and how many do you look to add as you implement your new structure moving forward? Well, we have basically two groups. As I mentioned, the respiratory group will have almost 50 sales reps and a full regional management team. And that team is pretty well complete right now. I mean, there may be a couple of open spaces, but that's complete. And in fact, part of that team has started their training yesterday. The other part was started in two weeks. So as I mentioned, by August 1st, we're hitting the ground with pretty well the entire team. On the specialty side, we have 11 reps and they've been around since January. So we've got some experience with them for that period of time. And again, they're handling neurology, oncology and Radesca. So in total, we're, I guess in the low 60s in terms of reps, and that's a fairly good size group of people to manage. And obviously a big change for us. So where they're coming from, you name it, from the big companies to the mid-tier companies, a lot of them are attracted by, well, the downsizing obviously of the industry has led to some very good quality people being available, but they're attracted by the opportunity with these products. Selling a product that can be differentiated, that brings additional benefits to the healthcare community providers or patients is something that sales representatives migrate towards or they relate to. And I think we have really a compelling story with our new launch products that resonate well with the entire healthcare system, whether it's saving money, whether it's bringing benefits across to, and whether it's being supportive on the medical side from information. We're treating this as I mentioned, they're very much in a big company kind of way. And that's what we aspire to be. We want to be that mid-tier company, that go-to company, that when a US or European or Asian company has a respiratory product and they say, okay, well, we're not coming to Canada, that market may be not as, it's not sized right for us or what have you. Who do we talk to? We want Valeo to be number one on their list, the go-to company in respiratory, the go-to company in neurology. So, and that has a lot of benefits in the sense of attracting great products. It has a lot of benefits for Canadians that will be able to launch and support great products that really improve lives of Canadian patients and provide healthcare practitioners with viable alternatives in treating their patients. You guys have just recently closed a 11.5 million bot deal financing. Can you provide a little bit about what those financial resources will do for your balance sheet at the moment? Certainly strengthen our balance sheet without question. It was a, I think this was a financing that was needed to support the growth that we have. And growth is a great, everyone wants to grow, but what growth takes capital, capital finance inventory, capital to hire people, as you can imagine, when you hire a sales team, you're hiring them, their financial impact in terms of revenue generation isn't immediate. There is a lag time, so you have to be able to support that lag time. And that's true of us, like it's true for the multinational farm companies. Product launches are expensive. They do take some upfront cash requirements. And we felt that we wanted to be in a strong position also to look at other product opportunities in terms of licensing fees, licensing rights, things of that nature. So I think we're in a very good financial position right now. We're not cashflow break even yet, but we expect to get there midway through next year. I think the resources at hand to support us until that period of time. Is there a plan as far as like a use of proceeds for the new financing? Is there anything specific or is it just there in the balance sheet so that it's available for future business? I would think, oh no, there's definitely, there's some of it that just goes to working capital. Some of it to augment our inventory. Some is going to be used to repay a bridge loan that was sort of a pre-financing loan that we took out in April, which has a January repayment date. So we will be using some of the proceeds to repay that. But I think all in all, it's used in a sort of very simplistic way. It's going to be used to support the growth that we expect to see over the course of the coming quarters. And along with that, it's nice, it's capital, it's capital, it's very permanent and it does provide that stability. But what it also has done is it has opened up the opportunities with the financial institutions such as our bank operating line of credit that will be increasing also. And we also are talking to various agencies across Canada about supporting a Canadian company or in a Quebec based company that's creating jobs. What we're trying to do is develop a Canadian pharmaceutical company that's independent that has an expertise in certain therapeutic areas that will be on a very high level. And I think that's valuable for, not just doctors and physicians that valuable for our shareholders, but it's actually valuable for society. It needs society in general to have these Canadian companies that have a strong presence, strong expertise. And who knows that might actually branch out internationally in the coming years and give us sort of something that, where we become an exporter as opposed to just an importer of pharmaceutical products. So I think the future going out the next three to five years will be very exciting for value. We certainly hope that our revenue quarter by quarter increases will resonate with our shareholders. And I agree with you. Internally, we believe our shares are very conservatively valued. I was maybe I'll use the word low, but we think that there's tremendous upside and we're still a very employee-owned management board and employees-owned still a considerable amount of the company, over 50% or around 50% after this financing. And we participated in every round, which shows us, I think it shows investors that we believe from day one and regardless of which rounds we've done in the current round, the president's list was 1.5 million out of the 11.5 and it could have easily been double that. And that's insiders and friends of insiders that really believe in what we're doing and in the potential of the company. Steve, I interview companies every day. I think we've done about 200 in the last year. And I've noticed that 25 million a year in revenue is kind of like, usually like the bare minimum for a company to go to the NASDAQ. So I just interviewed a company that is doing 25 million a year and they're $5 and they're on the NASDAQ. So when you think about your revenue now and you think about where it's going in a couple of years, if you hit that 40 million plus mark, that shows me that you're grossly undervalued when you compare yourself to your peers. Also, when you compare yourself to some of the giants in the pharmaceutical business like Pfizer, multi-billion dollar global conglomerate, Pfizer's huge. So when you're looking at a company like that to create a Canadian potential pharmacy, pharma company like a potential Pfizer would be huge and you're still trading under a dollar. So for investors that are looking to get into the pharma business, pharmaceutical business, this is in my opinion, a great time to position yourself in a company that's undervalued, underappreciated, underexposed. I believe your share structure is still extremely tight. And like you said, you've got insider ownership in a company like you said, around 50%. So you guys have skin in the game. So keep up the great work. You guys are definitely on the right track. Love to invite you back on the show anytime you have any big news, any updates. Love to be the guy to help tell your story because this is a story that I believe has legs and is extremely underappreciated. So we're gonna do our best to reach to be live to make sure that everybody knows that you're undervalued and everybody knows your name. Thank you so much for your time today, Steve Saviek, the CEO of value pharma. Thank you very much, Rich. Look forward to it. Always a pleasure. Always a pleasure having you on the show. And remember, guys, if you like this video, smash the like button, comment on the video, share the video everywhere and subscribe for future updates. Remember, Rich TV Live is strictly for information education purposes. Please do your due diligence, do your research before you invest in anything that we talk about. In saying that, if you go to a financial advisor and you look at the fundamentals of value pharma, I'm sure that your financial advisor is gonna say that this is a good company that is undervalued, underappreciated, underexposed. If you're not winning, you're not watching, we bring you the winners and we bring them to you first. Thank you so much for your time today, Steve. Thank you guys for watching. This is your boy, Rich from Rich TV Live. Have a nice day, everybody. We'll talk to you soon.