Sinclair Pharma PLC Trading Update for the 6 months to 30 June 2017 (6038K)
July 11 2017 - 2:00AM
UK Regulatory
TIDMSPH
RNS Number : 6038K
Sinclair Pharma PLC
11 July 2017
Trading Update for the 6 months to 30 June 2017
16% growth in revenues to GBP20 million
FDA approves Silhouette label change accelerating growth
potential
On track for another year of strong growth
London, 11 July 2017 Sinclair Pharma plc (AIM:SPH.L) ("Sinclair"
or the "Group"), the international aesthetics company, announces a
trading update for the six months ended 30 June 2017.
Unaudited sales for the six months ended 30 June 2017 were
GBP20.0 million, (GBP18.2 million at constant currency) compared
with sales of GBP17.2 million for the same period in 2016,
representing headline growth of 16.3% and in line with market
expectations.
Silhouette Soft(R) sales reached GBP7.3 million in the period,
compared with GBP6.1 million in H1 2016, reported growth of 20%.
Underlying in-market sales growth of Silhouette Soft(R) averaged
13% in the period, below the reported number which was boosted by
the consolidation of sales in Brazil. Growth has been moderated by
underperformance in the UK and France linked to local issues which
are now largely resolved. Silhouette Soft(R) continued to deliver
strong growth in multiple markets including Spain, South Korea and
the Middle East, with Brazil particularly strong during Q2. With
strong LATAM seasonality in Q4 and favourable distributor stocking
patterns, management anticipate an acceleration of growth rates in
the second half.
Silhouette Instalift(TM). Following the successful launch by
partner ThermiGen in the US in August 2016, revenue for the 1H 2017
period reached GBP2.3 million. Doctor training continues its rapid
roll-out and ThermiGen is on track to train over 1,000 physicians
in 2017. Purchase trends show both high initial order values and
encouraging reorder rates.
In June the FDA approved a commercially significant change to
the Silhouette Instalift(TM) label, with physicians no longer
required to use a permanent anchoring suture. This allows Sinclair
and ThermiGen to promote, train and market the use of Silhouette
Instalift(TM) via the clinically desirable, self-anchoring
procedure that is universally established for Silhouette Soft(R)
across the rest of the world.
Ellansé(R) delivered revenues of GBP4.2 million, unchanged from
the same period last year. The reported number is affected by the
ordering patterns of larger partners in the APAC region. Underlying
demand for Ellansé(R) is strong with in-market data showing an
average growth rate of 47% in the period. Growth remains broad
based across Sinclair's direct European operations as well as
distributor markets, notably in the Middle East and Asia.
Management remain very confident for the outlook for Ellansé(R) and
anticipate a return to strong reported sales growth in the second
half.
Perfectha(R) reported revenues increased 13.5% to GBP4.2 million
against GBP3.7 million in H1 2016. Average in-market growth rates
for the period are again ahead of the reported sales growth at 23%,
pointing to strong demand for Perfectha(R) and providing confidence
in the outlook for H2.
Sculptra(R) revenues were GBP2.0 million compared with GBP3.2
million in the prior year, reflecting de-stocking by certain
wholesalers. The Company expects to see a moderate increase in
sales in the second half relative to the first half.
Net cash at 30 June 2017 was GBP0.1 million (GBP16.8 million at
31 December 2016) in line with management expectations. Net cash at
the end of 2017 is expected to be broadly neutral as previously
guided. The cash outflow in the period includes operating cash
outflows, settlement of the Alliance Pharma warranty claim and
restructuring costs incurred in 2016 (in aggregate GBP6 million) ,
payment of Silhouette InstaLift(TM) sales milestone and deferred
considerations (GBP5 million in total) and planned capital
expenditure. The Group has drawn an initial GBP3 million under the
debt facility put in place in the period, and has access to a
further GBP7 million of undrawn facilities.
Chris Spooner, CEO, commented: "I am pleased with the
performance of the Group in the first half of 2017 which reflects
the growth profile we anticipated at the beginning of the year.
Order phasing, seasonality of sales in Brazil and strong
anticipated US growth will drive sales in H2 which we expect to be
considerably higher than H1. The FDA approved label change for
Silhouette Instalift(TM) is excellent news which will make training
simpler and cheaper. Our recent acquisition of the Refine system
fits our strategy of expanding the Silhouette brand and I see
strong medium term prospects for this unique product. We remain
focused on driving revenue growth whilst maintaining cost control
and we remain confident that the Group will deliver an adjusted
EBITDA profit for the full year."
Sinclair will publish interim results for the 6 month period
ended 30 June 2017 on 19 September 2017.
Ends
For further information please contact:
Sinclair Pharma plc Tel: +44 (0) 20 7467
6920
Chris Spooner
Alan Olby
Andy Crane
Peel Hunt LLP (NOMAD and Tel: +44 (0) 20 7418
Joint Broker) 8900
James Steel
Oliver Jackson
RBC Capital Markets (Joint Tel: +44 (0) 20 7653
Broker) 4000
Marcus Jackson
Laura White
Media enquiries
FTI Consulting Tel: +44 (0) 203 727
1000
Ben Atwell
Brett Pollard
Stephanie Cuthbert
Notes to Editors:
About Sinclair Pharma plc - www.sinclairpharma.com
Sinclair Pharma plc is an international company operating in the
fast growth, high gross margin, global aesthetics market. Sinclair
has built a strong portfolio of differentiated, complementary
aesthetics technologies, which are experiencing significant growth,
targeting unmet clinical needs for effective, high quality, longer
duration, natural looking and minimally-invasive treatments.
Sinclair is planning entry to multiple new geographic markets and
line extension launches over the next few years. The Group has an
established sales and marketing presence in the leading EU markets
and Brazil, and a network of international distributors including
ThermiGen in the US.
"Safe Harbor" Statement under the US Private Securities
Litigation Reform Act of 1995: Some or all of the statements in
this document that relate to future plans, expectations, events,
performances and the like are forward--looking statements, as
defined in the US Private Securities Litigation Reform Act of 1995.
Actual results of events could differ materially from those
described in the forward--looking statements due to a variety of
factors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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