• Changes to respiratory business unit to generate more than $5 million in annual savings
  
  
• Follows previously announced cost saving measures exceeding $2 million 
  
  
• Restructuring charges to be incurred in Q3-24
  
  
• Cost reduction initiatives are aimed at improving margins, significantly reducing operating expenses to accelerate path to profitability

MONTREAL, June 13, 2024 /CNW/ - Valeo Pharma Inc. (TSX: VPH) (OTCQB: VPHIF) (FSE: VP2) ("Valeo" or the "Company"), a Canadian pharmaceutical company, today announced that it has undertaken a restructuring of its commercial field operations aimed at improving margins, reducing operating expenses, aligning its commercial infrastructure with current market dynamics and accelerating its path to profitability.

Valeo expects these cost reduction measures, including an approximate 20% downsizing of its workforce, will decrease its operating expenses by more than $5.0 million on an annualized basis. Combined with the previously implemented cost reduction measures announced in November 2023, total annualized costs savings from all measures will exceed $7.0 million.

"Although this restructuring was primarily focused on our Respiratory Group, we remain fully committed to our three specialty units, respiratory, ophthalmic and hospital. We felt that a leaner, more focused approach was needed to ensure the continued revenue growth for our key products while providing important cost efficiencies that will allow us to achieve profitability as quickly as possible. These changes, as well as those cost reductions we announced earlier in our fiscal year, are key elements towards improving our operating results and overall financial performance", said Steve Saviuk, Valeo's CEO. "While this restructuring provides us with a sustainable operating structure from which we will continue to grow, the decision to implement these challenging but necessary changes affects many Valeo employees.  We would like to express our sincere gratitude to all the employees affected for their dedication and contributions made over the years."

About Valeo Pharma Inc.

Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory/Allergy, Ophthalmology and Hospital Specialty Products. Headquartered in Kirkland, Quebec Valeo Pharma has all the required capabilities and the full infrastructure to register and properly manage its growing product portfolio through all stages of commercialization. For more information, please visit www.valeopharma.com and follow us on LinkedIn and Twitter.

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