Clinigen Group plc (AIM: CLIN, ‘Clinigen’ or the ‘Group’), the global pharmaceutical and services company, today provides an unaudited trading update for the six months ended 31 December 2019.
The Group expects to report an increase of revenues of at least 24% on a net constant currency basis1 and at least 16% on a gross reported basis compared to last year. Gross profit is expected to have increased by at least 34% on both a reported and constant currency basis2 and at least 8% on an organic basis3. Reported EBITDA growth has been ahead of reported gross profit growth and organic EBITDA growth is expected to be in-line to marginally ahead of organic gross profit growth.
There have been good performances in Commercial Medicines, from CSM in Clinical Services and in Unlicensed Medicines, from Global Access. This helped offset weaker performances from CTS in Clinical Services and in Unlicensed Medicines, from both Managed Access and the UK Specials business.
Net debt is expected to have increased to £325m (£306m excluding the previously highlighted IFRS 16 adjustment), with bank covenant leverage4 at 2.5x, well within the Group’s 3.0x net debt / EBITDA covenant limit. The Group saw a meaningful outflow in working capital in the final months of the year, primarily due to Proleukin sales in the US, the timing of payments from across the Group and the launch of the ClinigenOne ERP system. Management expect this position to improve in the second half. The Group maintains its aim to paydown and maintain net debt within a range of 1.0x to 2.0x EBITDA on an ordinary basis and expects to deliver this within FY21.
Shaun Chilton, Group Chief Executive Officer of Clinigen, said:
“We have had a strong start to the year, having grown organic gross profit by at least 8% in H1 2020, validating the Group’s unlicensed to licensed synergy strategy. We reiterate our expectation for FY20 growth to be towards the upper end of our organic gross profit guidance of between 5% to 10%.
The focus for the Group in H1 FY20 has been to integrate our strategic acquisitions and to capitalise on the Group’s international platform to support synergistic growth. Integration is on-track with further, more meaningful steps to be taken now the earn-out on CSM has been completed.”
The Group expects to publish its final results for the six months ended 31 December 2019 on Tuesday 25 February 2020.
1 Net constant currency is growth applying prior period’s actual exchange rate to this period’s result excluding the impact of pass through costs in the Managed Access business.
2 Constant currency is growth applying prior period’s actual exchange rate to this period’s result.
3 Year on year comparisons referred to as ‘organic’ are a measure of growth on a constant currency basis, excluding the impact of business and product acquisitions. Acquisitions completed in the previous financial year are included on a like for like basis including the results for the acquisition where it is included in the comparable historical period. Organic growth is presented to aid the reader’s understanding of the underlying performance of the business. On a proforma basis the best estimate is at least 8% for organic gross profit growth.
4 Bank covenant leverage is calculated by dividing adjusted EBITDA of the Group for the last 12 months by net debt at the period 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.
Clinigen now has over 1,100 employees across five continents in 14 countries, with supply and distribution hubs and operational centres of excellence in key long-term growth regions. The Group works with 22 of the top 25 pharmaceutical companies; interacting with over 15,000 registered users across over 100 countries, shipping approximately 6.4 million units in the year.
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 by Instinctif Partners.
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