Valeo Pharma (VPH.c) and why you should care about bioflavonoids

Doing what we do at Equity Guru, every day, we receive emails and dms from shareholders of different companies – all expressing their grievances. Disgruntled with various issues such as failed management promises, lackluster progress, heavily diluted share structure, etc…

As a result, it makes it even more satisfying to introduce our audience to companies who are set up to provide shareholder value for all its investors. Valeo Pharma is an excellent example of such a company.

VPH data by YCharts

I started doing my due diligence about Valeo in the beginning of July and since my first article, the company’s share price is up 40% ($0.88 to $1.21). And yes, it did reach $1.76 and saw some selling off, but frankly, that’s only to be expected when a stock rockets over 200% in a few months. However, as mentioned in my initial article, I am long on Valeo and believe this is only the beginning.

Here is why:

Valeo has

• An excellent management team that has an extensive track record of success,
• A business model that mitigates risk yet offers massive upside, and;
• A plan of action that is designed for growth.

If you need more evidence, let’s examine the recent developments since my previous articles about Valeo:

July 29^th

VALEO PHARMA APPLIES FOR LISTING ON THE U.S. OTCQB MARKET

Valeo Pharma Inc. (CSE:VPH) (“Valeo” or the “Company”), a Canadian specialty pharmaceutical company, announced today that it has completed and filed its application to list the Company’s Class A shares (“Shares”) on the OTCQB market in the United States.

Exposure to a greater number of investors. Excellent move.

August 5th

VALEO PHARMA NOTIFIES WARRANTS HOLDERS OF UNCHANGED EXPIRY DATE Valeo Pharma Inc. (CSE:VPH) (“Valeo” or the “Company”), a Canadian specialty pharmaceutical company, announced today that it has no intention at this time to accelerate the expiry of the share purchase warrants of the Company (the”Warrants”) issued pursuant to a short form prospectus dated July 11, 2019, each Warrant having an exercise price of $0.60 and an expiry date of July 25, 2022. All other terms of these Warrants remain unchanged, including the right of the Company to accelerate on occurrence of a subsequent acceleration event in accordance with the terms of the Warrants.

The company is expected to continue to increase their cash flow. They are not reliant on warrants to be exercised in order to generate cash to cover expenses. Also – what idiot would complain about $0.60 warrants when the stock is already trading at double that value.

August 12

VALEO PHARMA COMMENCES YONDELIS® COMMERCIALIZATION IN CANADA

Valeo Pharma Inc. (CSE:VPH, FSE:VP2) (“Valeo” or the “Company”), a Canadian specialty pharmaceutical company, announced today that it has commenced commercializing Yondelis® in Canada following the recently received Notice of Compliance from Health Canada authorizing the transfer of the commercial rights of Yondelis® to Valeo. Yondelis® (trabectedin) is a novel marine-derived antitumor agent manufactured by PharmaMar S.A., based in Madrid, Spain.

This was achieved after receiving approval from HEALTH CANADA FOR THE TRANSFER OF COMMERCIAL RIGHTS TO YONDELIS® IN CANADA on June 8th 2020. Yondelis is the second product from Valeo’s ‘Growth” brand line to now be commercialized in the recent weeks after Ametop, with Valeo hoping to receive approval for the much anticipated Redesca.

August 20th

VALEO PHARMA ANNOUNCES $6.0 MILLION BOUGHT DEAL FINANCING

Valeo Pharma Inc. (CSE:VPH, FSE:VP2) (“Valeo” or the “Company”), a Canadian specialty pharmaceutical company, announced today that it has entered into an agreement with a syndicate of underwriters led by Stifel GMP (the “Lead Underwriter”, and collectively with the syndicate of underwriters, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase from the Company, on a bought deal basis pursuant to the filing of a short form prospectus,

Great, cashing up has never hurt a company. But, we would have thought the increased revenues and the previous raise would be more than enough to keep the company humming for a while. Why would an otherwise solid company further dilute their share structure, and offer warrants? It’s not unreasonable to be expecting big news.

And lo and behold:

Today, August 24th

VALEO PHARMA HAS SUBMITTED HESPERCOTM NATURAL PRODUCT LICENSE APPLICATION FOR APPROVAL TO HEALTH CANADA

• HespercoTM capsules can be taken to support immune system

• Valeo Pharma enters into agreement with Ingenew Pharma Inc.

Valeo Pharma Inc. (CSE:VPH, FSE:VP2) (“Valeo” or the “Company”), a Canadian specialty pharmaceutical company, announced today that it has filed for a Natural Product Licence with Health Canada for its unique bioflavonoid formulation, HespercoTM. HespercoTM capsules contain a powerful antioxidant that can be taken for immune system support.

What is Hesperco and why is this significant?

Hesperidin is a plant chemical that is classified as a “bioflavonoid.” It is most commonly found in citrus fruits. People use it as medicine.

What are bioflavonoids?

Bioflavonoids are found in certain fruits, vegetables, and other foods, like dark chocolate and wine. They have potent antioxidant power.

Why is this so interesting? Antioxidants may fight free radical damage. Free radical damage is thought to play a part in anything from heart disease to cancer. Antioxidants may even help your body deal with allergies and viruses.

One of the major talking points throughout the pandemic has been:

Big pharma vs natural remedies.

Hesperco should satisfy both sides of these arguments.

The pharmaceutical approach is done via “Ingenew’s ongoing expansion of scientific data as well as the development of new clinical data”, which “will provide further evidence of Hesperco’sTM effectiveness in providing support for the immune system”

And Hesperco is a natural remedy that has been around for hundreds of years. It is designed to boost immune systems, and based on research done by Ingenew, it is anticipated to demonstrate its effectiveness in doing that.

When it comes to COVID-19:

“Hesperidin is anticipated to prevent entry/replication of SARS-CoV-2, modulate the immune response and target sequalae (a sequela is a chronic condition that is a complication which follows a more acute condition) caused by infection/immunization such as cytokine storm and potential cardiac injuries in COVID-19 patients culminating with a decrease in the severity of the disease

• Interferences/inhibitions mechanisms of SARS-CoV-2

By now we all know that for the virus to survive and spread within its host it needs to inject its genetic material into the host cell. It does that by attaching its surface proteins to the host cells surface proteins. “Hesperidin initially became a drug candidate for a clinical trial in COVID-19 patients as it was reported to directly inhibit 2 key components of the SARS-CoV family, namely Spike(S) protein and 3CLpro”.

“Within this massive influx of scientific/medical publications focused around SARS-COV-2 and COVID-19, computational modelling publications were the first to confirm hesperidin’ potential as an inhibitor of SARS-COV-2” . Since then at least 5 other publications have confirmed the replication inhibition potential. This is significant since 3CLpro has been often dubbed “the Achilles’ heel of coronavirus”.

• Immunomodulation of COVID-19 

Immunomodulation is modulation (regulatory adjustment) of the immune system.

During the COVID-19, the patient’s most vulnerable period of infection/immunization is the lag time phase of the immune response. This is the time it takes for your body to signal it is being attacked and gather up the troops to go to fight. “As such, hesperidin could provide the infected host a short (14 days) but key window of immunomodulation (by interfering/inhibiting of Spike(S) protein and 3CLpro of SARS-CoV-2) to allow development of the host natural immunity culminating with the primary immunoglobulin (IGg) response against SARS-COV-2”.

• Decrease of cytokine storm, cardiopulmonary injuries, and severity of COVID-19. 

This might be the most significant of the suggested effects. Some of the main organs in the body are damaged by a common COVID-19 symptom, Inflammation. According to John Hopkins University:

• The brain
  • The massive inflammation brought on by COVID-19 can increase stroke risk, researchers have found.
• The lungs
  • The lungs are where COVID-19 can set up shop — quickly — causing oxygenation rates to fall dramatically. The lungs begin to fill with fluid and become inflamed as soon as a few days after infection, leading to the hallmark cloudy x-rays of COVID-19 afflicted lungs. The virus can cause lung complications such as pneumonia and acute respiratory distress syndrome, which is life-threatening as the lungs cannot supply enough oxygen to keep the body working.
• The heart
  • New research suggests the virus can lead to an infection of the heart or inflammation of the heart muscle.

In numerous animal studies, therapeutic potential of hesperidin has been exhibited as it downregulates(lowers) key pro-inflammatory cytokines(small proteins). By reducing inflammation caused in vital organs, Hesperidin is suggested to help recovery, but more importantly, prevent long term damage to those organs.

By making realistic promises and licensing a remedy that would appeal to both sides of the medical market (the naturopaths and the scientists), Valeo’s management team once again proves their abilities in picking their markets carefully, watching the world and responding effectively – and ultimately produce results for all involved.