TIDMCLIN
RNS Number : 3083L
Clinigen Group plc
18 July 2017
18 July 2017
Year end trading update
Strong full year performance with profits up over 20%
Clinigen Group plc (AIM: CLIN, 'Clinigen' or the 'Group'), the
global pharmaceutical and services company, today provides a
trading update for the 12 months ended 30 June 2017.
Highlights
-- Gross profit* expected to be up 22% driven by a combination
of organic growth across all operations, a full year's contribution
from Link Healthcare and currency benefits
-- Strong growth across Clinical Trial Services (CTS),
Unlicensed Medicines, and Commercial Medicines
-- Outstanding performance in Africa and Asia Pacific
-- Dexrazoxane portfolio revitalisation significantly enhanced
by positive CHMP** opinion on Cardioxane and Totect US approval
-- New simplified operating and reporting structure comprising
CTS, Unlicensed Medicines and Commercial Medicines
Shaun Chilton, Group Chief Executive Officer of Clinigen Group
said:
"This has been another excellent year with all three operations,
CTS, Unlicensed Medicines and Commercial Medicines, performing
strongly.
"We have made significant progress in our strategy to build
scale and capability in high growth geographies in Africa and Asia
Pacific. Now that Link's earn-out period has been completed, we
will be able to further integrate and develop our complementary
portfolio of businesses worldwide.
"Our priorities in the current financial year remain unchanged.
We will drive organic growth across all parts of the Group and
search for selective acquisitions to complement our existing
offering and capabilities."
Group performance
Overall the Group has traded in line with the Board's
expectations and all operations are well positioned to drive good
growth in the current financial year.
Following the completion of the Link earn-out and subsequent
closer integration of Link into the Group, the performance of the
business will be reported as three operations; CTS, Unlicensed
Medicines, and Commercial Medicines. This structure reflects how
Clinigen operates in practice and will allow the Group to better
capitalise on our market leading positions and expanded
geographical footprint.
Gross profit, viewed as the best measure of top line growth, is
expected to increase by around 22% compared to last year, driven by
organic growth across all operations, a full year's contribution
from Link Healthcare ('Link') and currency benefits following the
depreciation of Sterling.
Revenues increased around 7% excluding the effect of the change
in mix in Managed Access towards programmes where the product is
provided by the pharmaceutical client free of charge, and the
termination of a large Global Access low margin commercial
contract, which was inherited with the Idis acquisition. This
revenue growth is lower than the growth in gross profit primarily
due to the change in mix in CTS towards higher margin products and
activity. Reported revenue decreased around 11%.
CTS
CTS, representing around 19% of Group gross profits, delivered
another year of excellent growth. It continues to add complementary
services to the core business to respond to the increased demand
from clients requiring more global and complex solutions.
Unlicensed Medicines
Unlicensed Medicines, encompassing the Managed Access, Global
Access and the unlicensed business within the Link division,
represents around 42% of Group gross profit. This part of the
business delivered strong growth with the highlight being
outstanding growth in the Africa and Asia Pacific region.
Commercial Medicines
Commercial Medicines, encompassing the Specialty Pharma division
and the commercial business of the Link division, representing
around 39% of Group gross profits, delivered another excellent year
of progress.
Foscavir was an important driver of growth and Ethyol stepped up
in the second half benefiting from the strategic partnership with
Cumberland in the US. The Group's dexrazoxane portfolio comprising
Cardioxane, Savene and Totect, performed as expected, with Totect
achieving FDA approval in the final quarter in the US.
As announced in May 2017, a key development was the positive
CHMP** opinion to modify the current product information for
Cardioxane. It is expected that the European Commission will accept
the CHMP opinion and will issue its approval shortly. As a result
of the approval, physicians will be able to consider use of
Cardioxane in paediatric patients where high dose anthracycline
therapy is planned. The approval is expected to step up usage of
Cardioxane in the medium term and further demonstrates Clinigen's
ability to revitalise acquired products.
Excellent progress was made in the Africa and Asia Pacific
region, building sales from Link's existing commercial portfolio
and from the strategy of converting unlicensed medicines to
licensed medicines.
Group overheads are expected to increase in line with budget as
the Group continues to strengthen the infrastructure and management
team to support its long term growth ambitions. The implementation
of the Group's ERP system, which will make the business more
efficient and scalable, is progressing to plan.
Cash flow performance was significantly stronger in the second
half of the year. As a result, net debt has decreased to around
GBP35 million as at 30 June 2017 from GBP70.9 million as at 31
December 2016. It is estimated that the deferred cash consideration
on the Link acquisition, payable in October 2017, will be in the
region of GBP40m.
The Group expects to publish its final results for the year
ended 30 June 2017 on Thursday 28 September 2017.
*Gross profit growth rate includes Clinigen's share of the South
Africa Joint Venture and exclude the impact of the release of the
fair valuation of inventory acquired with Idis and Link Healthcare.
Under IFRS, the Joint Venture is excluded from revenue, gross
profit and profit before tax and the Group's share of the Joint
Venture's profit after tax is included in the Profit and Loss
Account as 'other income'. The release of the fair value element of
inventories is included in the non-underlying costs of the
Group.
**The Committee for Medicinal Products for Human Use (CHMP) is
the European Medicines Agency's (EMA) committee responsible for
human medicines.
- Ends -
Conference call
Shaun Chilton, CEO and Martin Abell, CFO will host an analyst
call at 8.30am on Tuesday, 18 July 2017. Call details available
upon request from clinigen@instinctif.com.
An audio replay file will be made available shortly afterwards
on the Group's website: www.clinigengroup.com.
Contact Details
Tel: +44 (0) 1283
Clinigen Group plc 495010
Shaun Chilton, Group Chief
Executive Officer
Martin Abell, Group Chief Financial
Officer
Matt Parrish, Head of Investor
Relations
Tel: +44 (0) 20
Numis Securities Limited 7260 1000
Michael Meade / Freddie Barnfield
(Nominated Adviser)
James Black / Tom Ballard (Corporate
Broking)
RBC Capital Markets - Joint Tel: +44 (0) 20
Broker 7653 4000
Marcus Jackson / Elliot Thomas
/ Jack Wood
Instinctif Partners - Media Tel: +44 (0) 20
Relations 7457 2020
Melanie Toyne-Sewell / Alex
Shaw / Deborah Bell Email: clinigen@instinctif.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 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 licenced
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.
Unlicensed Medicines
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.
Commercial Medicines
The Group acquires global rights to niche hospital only and
critical care products, revitalising these assets around the world
and returning them back to sustained growth. The Group also
provides access to licensed and branded generic medicines in the
Africa and Asia Pacific region.
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.
The information contained in this statement has not been audited
and may be subject to further review.
The company news service from the London Stock Exchange
END
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