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Clinigen Half Year Results

Clinigen Half Year Results

Execution of strategy sees strong organic growth withcontinued double-digit EPS growth

Clinigen Group plc (AIM: CLIN, ‘Clinigen’ or ‘the Group’), the global pharmaceuticals and services group, has today published its half year results for the six months ended 31 December 2019.

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FINANCIAL HIGHLIGHTS

  • Gross profit up 35% (+9% on an organic basis5) to £108.1m (2018: £80.0m)
  • Adjusted EBITDA up 42% (+10% on an organic basis5) to £62.1m (2018 restated: £43.7m)
  • Adjusted EPS up 34% to 30.8p (2018 restated: 23.0p)
  • Net debt as at 31 December 2019 of £322.3m, (£305.4m excl. IFRS 16 adjustment) representing pro forma leverage of 2.4x with target leverage of 1.0x – 2.0x expected in FY21

OPERATIONAL HIGHLIGHTS

  • First significant step in the revitalisation of Proleukin through supply agreement signed with Iovance Biotherapeutics, which further strengthens the links between the Clinigen operations
  • Commercial Medicines – further validation of Unlicensed-to-Licensed (UL2L) synergy strategy with growth in Melatonin and continued good performance of Glycopyrronium in the UK and from the Eisai portfolio in South Africa. Commercial platform now established across the EU and US with further product in-licensing and acquisition opportunities under review to leverage infrastructure
  • Unlicensed Medicines delivered strong growth in Global Access largely offsetting expected weakness in Managed Access and the UK Specials business. Outlook positive with new exclusive arrangements in place and investment in niche growth parts of UK Specials, such as Aseptic Services, expected to deliver increasing returns
  • Clinical Services – strong growth in CSM offsetting lumpiness in CTS. The integration of CSM and CTS is on track with further, more meaningful steps to be taken now the earnout has ended and with CTS outlook improved post period end with a material contract win

Shaun Chilton, Group Chief Executive Officer, said:

“Our strategy is to build an integrated, international pharma product and services group with strong operational synergies, working with a growing roster of multinational clients and healthcare professionals around the world. We are delivering on our strategy and have seen a strong financial performance - both at the headline numbers and on an underlying organic basis.

“Key operational highlights include the first supply agreement for Proleukin with Iovance; the performance of Melatonin, our largest Unlicensed-to-Licensed product to add to Glycopyrronium in validating this strategy; and continued strong growth in Global Access.

“With the commercial platform in the EU and US now established, we are actively seeking further product in-licensing and acquisition opportunities to leverage across the business. We are also integrating CSM into our Clinical Services division to drive higher organic growth across the Group through greater cross-selling and seeding relationships into our Unlicensed Medicines business.

“We have continued our good performance into H2 and continue to expect organic gross profit growth at the upper end of our medium-term target range of 5-10%.”

Note
1 Group results on an adjusted basis exclude amortisation of acquired intangibles and products, and other non-underlying items relating to acquisitions (see note 3 and 4 of the condensed financial statements).

2 Adjusted net revenue excludes Managed Access pass through revenue which varies each period dependent on the mix of programs.

3 Adjusted EBITDA includes the Group’s share of EBITDA from its joint venture and is now shown after the adoption of IFRS 16. The Group implemented IFRS 16 ‘Leases’ for the first time in FY20 using the modified retrospective approach. Statutory reported comparatives have not been restated and therefore the statutory results are not comparable to the prior year. The prior period adjusted results have been restated for IFRS 16.

4 Constant currency growth is derived by applying the prior period’s actual exchange rate to this period’s result.

5 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. In previous reports, organic growth was calculated on a pro forma basis with the comparative period results before acquisition based on the vendors’ previously reported results. The like for like basis now used has been necessary due to the limited reported financial information available for the products’ results prior to acquisition by Clinigen. On a pro forma basis, the best estimate for organic gross profit growth for the six months ended 31 December 2019 is 10%.

6 Operating cash flow is net cash flow from operating activities before income taxes and interest.

For the full results statement, see the Group 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. The Group has sites in North America, Europe, Africa and the Asia Pacific region.
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.

Issued for and on behalf of Clinigen by Instinctif Partners.
For more information please contact clinigen@instinctif.com

 

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