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Clinigen - Full Year Results - Double digit organic EBITDA growth delivered -- Platform in place for accelerated growth

Clinigen - Full Year Results - Double digit organic EBITDA growth delivered -- Platform in place for accelerated growth

Clinigen Group plc (AIM: CLIN, ‘Clinigen’ or ‘the Group’), the global pharmaceuticals and services group, has today published its full year results for the year ended 30 June 2020.

 

Clinigen FY Results Image

 

FINANCIAL HIGHLIGHTS

  • Strong organic performance at net revenue, gross profit and EBITDA with adjusted EPS up 20% to 65.6p (2019: 54.4p)
  • Cash flows materially improved in H2, with operating cash flow conversion of 123% in H2, equating to 72% for FY20 overall
  • Medium term organic net revenue growth guidance of 5 - 10% - with FY21 to be at the lower end due to impact of COVID-19 and expected launch of a generic Foscavir in the EU; Foundations in place for accelerated long term growth from FY22
  • Trading to date at this early stage of the current financial year is in line with market expectations, with impact of COVID-19 continuing but at improved levels from Q4

 

OPERATIONAL HIGHLIGHTS

  • Diversified business model adapted well to disruption caused by COVID-19 pandemic in Q4; synergies continuing to build between operations for longer term sustainable growth
  • Commercial Medicines – strong underlying performance across the portfolio, particularly from Unlicensed-to-Licensed (UL2L) developments and from licensing agreements in the Africa and Asia Pacific regions (AAA). Headwinds to Proleukin caused by COVID-19 disruption partly reversed towards year end and are expected to improve further in the current financial year
  • Significant in-licensing agreement for Erwinase® signed with Porton Biopharma Ltd, commencing in 2021; example of the strategy to partner with pharmaceutical companies and strengthens commercial offering in key markets
  • Unlicensed Medicines – excellent growth in Global Access with weakness in Managed Access caused by both timing of programs starting and finishing, and COVID-19 disruption offset partly by record program win-rate
  • Clinical Services – robust top line performance driven by good growth in CSM and material contract win in CTS, against a challenging market backdrop due to COVID-19 disruption

 

Shaun Chilton, Group Chief Executive Officer, said:

“Few companies have been immune to the disruption caused by COVID-19, but Clinigen’s performance has remained robust and the Group has delivered double digit organic growth and double digit EPS growth yet again. This is a testament to the Group’s employees who have worked tirelessly during this difficult period.

 

“The year has presented challenges, but also new opportunities for growth as the Group has pivoted quickly to support efforts against the pandemic with several material new contract wins in Unlicensed Medicines and Clinical Services. There has been a strong underlying performance from Commercial Medicines despite headwinds facing Foscavir and COVID-19 related disruption to Proleukin. Looking forward, the impact from these headwinds is expected to reduce throughout FY21, before growth accelerates from further expected market share gains for our services businesses, the in-licensing of Erwinase and the revitalisation of Proleukin in new indications.

 

“We remain confident in achieving our objectives for FY21 - continuing to focus on both the unlicensed and licensed markets, and to demonstrate the synergistic link between the divisions. For the longer term, we have the pillars of the business in place for accelerated growth from FY22.”



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. Adjusted net revenue is a new alternative performance measure of top line performance which is now used to manage the business as it eliminates volatility in reported revenue which can arise as a result of the mix of Managed Access Programs.

3. Adjusted gross profit excludes the impact of exceptional charges from write down of inventories.

4. 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. Comparatives have not been restated and therefore are not comparable to the prior year. Organic growth has been calculated excluding the impact of IFRS 16.

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

6. 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 adjusted EBITDA growth for the year ended 30 June 2020 is 12%.

7. 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 1,150 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 21 of the top 25 pharmaceutical companies; interacting with over 18,000 registered users across 115 countries, shipping approximately 6.5 million units in the year.


For more information on Clinigen, please visit www.clinigengroup.com

 

Cautionary statement

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.

 

Issued for and on behalf of Clinigen by Instinctif Partners.

For more information please contact: clinigen@instinctif.com 

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Melanie Toyne-SewellManaging Partner