Clinigen Group plc (AIM: CLIN, ‘Clinigen’ or the ‘Group’), the global pharmaceutical and services company, today provides a trading update for the six months ended 31 December 2017.
The Group has traded well in the first half, in line with the Board’s expectations.
Group revenues increased around 28%. This is higher than the growth in gross profit due primarily to an increased level of pass through costs within the early access part of Unlicensed Medicines.
Gross profit*, viewed by the Board as the best measure of top line growth, increased by around 10% compared to last year. Growth has been driven by a combination of a strong performance by Commercial Medicines and two months contribution from Quantum Pharma plc (‘Quantum’).
Commercial Medicines, representing around 49% of Group gross profit and including the commercial business of Quantum, delivered excellent growth, with all products across the portfolio performing strongly.
Unlicensed Medicines, representing around 41% of Group gross profit, benefited from two months contribution from the related business within Quantum and IMMC. In early access, performance was affected by a number of larger programmes coming to the end of their lifecycle. There are a significant number of new programmes now starting that are expected to drive stronger second half performance.
Clinical Trial Services, representing around 10% of Group gross profits, was below last year following two years of double digit growth. Performance is expected to step up in the second half.
The Group acquired IMMC, Japan’s largest supplier of unlicensed medicines, on 23 October 2017 and Quantum on 1 November 2017. Both businesses performed well in the two months following their acquisition.
Following a period of investment last year, underlying Group overheads are expected to grow at a slower pace than gross profit.
The Group has achieved another good cash flow performance. Following the acquisitions and the payment of the final scheduled deferred consideration on the Link acquisition, net debt increased to around £142m as at 31 December 2017 (31 December 2016: £70.9m).
Shaun Chilton, Group Chief Executive Officer of Clinigen, said:
“We have delivered good growth and made strong progress against our strategic priorities, which have been enhanced by the acquisition of Quantum and IMMC.
“Our strategic priorities remain unchanged. We have and will continue to drive organic growth and search for selective acquisitions to complement our existing offering and capabilities.
“We are well positioned to deliver another good year of progress.”
The Group expects to publish its interim results for the six months ended 31 December 2017 on Tuesday 27 February 2018.
*Gross profit growth rates exclude the release of the fair valuation on inventory from business acquisitions.
Shaun Chilton, CEO and Martin Abell, CFO will host an analyst call at 8.30am on Wednesday, 17 January 2018. Call details available upon request from email@example.com.
An audio replay file will be made available shortly afterwards on the Group’s website: www.clinigengroup.com.
About Clinigen Group
Clinigen Group plc (AIM: CLIN) is a global pharmaceutical and services company with a unique combination of businesses focused on providing ethical access to medicines. Its mission is to deliver the right medicine to the right patient at the right time through three areas of global medicine supply; clinical trial, unlicensed and licensed medicines.
Clinical Trial Services
Clinigen is the global market leader in the specialist supply and management of quality-assured comparator medicines and services to clinical trials and Investigator Initiated Trials.
Clinigen is the global leader in ethically sourcing and supplying unlicensed medicines to hospital pharmacists and physicians for patients with a high unmet medical need. The Group manages early access programmes to innovative new medicines and provides ‘on demand’ access globally to medicines which remain unlicensed at the point of care.
Clinigen acquires global rights to niche hospital only and critical care products, revitalising these assets around the world and returning them back to sustained growth. It also provides access to licensed and branded generic medicines in the Africa and Asia Pacific region.
The Group also has an ‘unlicensed to licensed’ strategy, where it looks to take unlicensed medicines with commercial potential and licences them, helping to address unmet medical need and allowing the Group to capitalise on its market-leading positions.
For more information on Clinigen, please visit www.clinigengroup.com
This announcement contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of Clinigen Group plc. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the forward-looking statements may not actually be achieved. Recipients are cautioned not to place undue reliance on any forward-looking statements contained herein. Except as required by law, Clinigen undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances.
The information contained in this statement has not been audited and may be subject to further review.
Issued for and on behalf of Clinigen Group plc by Instinctif Partners.
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Melanie Toyne-SewellManaging Partner