Pharma Co. won’t see increased sales of new COVID drug

Source:

The U.S. Food and Drug Administration’s advisory panel has denied approval of this treatment for patients hospitalized with severe SARS-CoV-2, but it’s still a buy, a report noted. Research Capital Corp.


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

Therefore, it is likely that 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 FDA panel decision,” Uddin added, “we believe Valeo should have a hockey stick ramp in the next few years with the rollout of its new licensed products.”

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

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

As a result, Research Capital lowered its 2023 revenue estimate on Valeo to C$61.7 million (C$61.7 million) from C$73 million.

This compares to the Canadian specialty pharmaceutical company’s most recent forecast for 2023 of C$63 million.

The investment firm, however, maintained its speculative buy rating and C$1 per share price target on Valeo, whose stock is currently trading at around C$0.28 per share.


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Sallie R. Loera