Clinigen Group plc (AIM: CLIN, ‘Clinigen’ or the ‘Group’), the global pharmaceutical and services company, today provides an unaudited trading update for the year ended 30 June 2019.
The Group expects to report an increase of revenues of at least 19% on a reported basis and constant currency basis* compared to last year. Gross profit** is expected to have increased by at least 30% on a reported basis and 31% on a constant currency basis*. EBITDA growth is expected to have increased ahead of gross profit, in line with the Board’s expectations whilst EPS is expected to have increased by at least 15%.
The strong growth has been driven primarily by acquisitions with each contributing towards the Group’s performance. Two of the largest acquisitions, CSM and the rights to Proleukin in the US, have exceeded expectations. This performance from acquisitions plus good underlying growth overall has offset pressure on the Group’s largest product, Foscavir, from an alternative therapy, and from the UK Specials business within Unlicensed Medicines.
Cash generation remains strong with net debt at 30 June 2019 expected to have fallen below £255m, with bank covenant leverage*** now under 2.0x net debt / EBITDA.
Shaun Chilton, Group Chief Executive Officer of Clinigen, said:
“We have continued to execute our strategy with the recent acquisitions strengthening our offering and capabilities as well as diversifying our portfolio of businesses and products. The expansion of our geographical footprint by building on our existing commercial infrastructure in the US and EU will provide notable benefit to all our businesses.
“Financially we have delivered a strong performance, driven by our acquisitions and we remain highly cash generative – one of our main business KPIs.
“The Group is well positioned to develop the business as well as drive organic growth over the medium term.”
The Group expects to publish its final results for the year ended 30 June 2019 on Thursday 19 September 2019.
* Constant currency is growth applying prior year’s actual exchange rate to this year’s result.
** Gross profit growth rates exclude the release of the fair valuation on inventory from business acquisitions.
***Bank covenant leverage is calculated by dividing adjusted EBITDA of the Group for the last 12 months by net debt at the year end. Adjusted EBITDA includes the EBITDA from the businesses and assets acquired during the last 12 months, including on a pro forma basis the year prior to it becoming a member of the Group.
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. The Group has sites in North America, Europe, Africa and Asia Pacific. In October 2018, the Group acquired CSM, a specialist provider of packaging, labelling, warehousing and distribution services, with sites in the US and Europe, and iQone, a specialist pharmaceutical company in Switzerland.
For more information, 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 by Instinctif Partners.
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