Canada’s only paediatrics-based pharmaceutical company has exciting milestones for investors to look forward to in the coming years.
After nearly a 75 percent revenue increase in revenue to CA$7.9 million from CA$4.5 million—the nine months ended December 31 2017 compared with 2016—CEO of Pediapharm (TSXV:PDP; OTCQB:PDDPF) Sylvain Chrétien said the company is “confident to go beyond 10 million” for this year.
At the Bloom Burton & Co. Healthcare Investor Conference in Toronto which took place May 2-3, the Investing News Network (INN) spoke with Chrétien about PediaPharm’s future including increasing revenue, new licensing agreements, and potential therapeutic areas. To listen to the full interview, watch the video above.
“Our business plan is projecting about $30 to $35 million in revenue with our current marketed products,” Chrétien told INN.
In 2016, Chrétien was at the Bloom Burton conference selling the value of Pediapharm’s product pipeline. Since then, all of those have been approved in Canada and the company is at full speed with its commercial operations. Even the products which the company has had for years are still increasing in revenue, in addition to its recently launched products. This is now a time for the company to see a growth in revenue following years of investing in its product pipeline.
Products with the biggest revenue include a head lice treatment NYDA, an occasional constipation treatment Relaxa, and a severe drooling treatment for patients with Cerebral Palsy, Cuvposa—which was just launched in April.
As its name suggests, Pediapharm is a pediatrics-based pharmaceutical company and is Canada’s only pharma company primarily focused on a pediatrics. The company builds its pipeline not through its own research and development but through “securing rights on products where the research is done,” and brings the products to Canada through a partnership.
Chrétien said the company is confident it will sign new agreements over the next few months, although he added pricing is a challenge for bringing some products to Canada as “the environment here would not allow some drugs to be reimbursed.”
“We now need to replenish our pipeline with new products because all the products we had have been approved,” he said. “We also have some discussion for drug development on children medicines but currently we don’t have any specific program.”
Some future therapeutic areas the company has identified could be infant formula, ADHD drugs, vaccines, and asthma, among others.
Despite increasing revenue, the discussion of drug development and expecting to sign more deals to build its pipeline, Chrétien said the company will maintain operating expenses at the same level for years to come.
Investors interested in Pediapharm can follow the company’s news for future information on continued revenue increases—with its recently launched product—and new partnership agreements within the year.
Further down the road, as Chrétien said, drug development could become a more serious discussion, along with global expansion, “it is definitely on the horizon in terms of building a company for children medicines globally,” he said.
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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.