TIDMCLIN
RNS Number : 0139V
Clinigen Group plc
25 January 2017
25 January 2017
HY trading update: strong H1 performance with gross profit up
34%
Clinigen Group plc (AIM: CLIN, 'Clinigen' or the 'Group'), the
global pharmaceutical and services company, today provides a
trading update for the six months ended 31 December 2016.
Highlights
-- Gross profit* up 34% driven by a combination of good organic
growth across all divisions, a full six months contribution from
Link Healthcare and currency benefits
-- Excellent growth by Link Healthcare and Clinical Trial Services
-- Strong growth in Managed Access and Specialty Pharma
Shaun Chilton, Group Chief Executive Officer of Clinigen,
said:
"We have delivered good growth across all divisions following
the successful integration of the Idis and Link Healthcare
acquisitions.
"Link Healthcare has achieved an outstanding performance,
demonstrating the value of its acquisition by the Group. Among the
other divisions, Clinical Trials Services has again delivered a
standout performance. Managed Access and Specialty Pharma also
delivered strong growth.
"We are trading in line with our expectations and are well
positioned to deliver good performances across all divisions in
H2.
"Our priorities remain to drive organic growth by capitalising
on our international market leading positions and expanded
geographical footprint. We will also continue to look for selective
acquisitions that meet our return criteria in order to enhance our
product portfolio and / or service capabilities."
Group performance
Gross profit* increased approximately 34% compared to last year.
The increase was driven by good levels of organic growth across all
business divisions, a full six months contribution from Link
Healthcare, which was acquired in October 2015, and favourable
exchange rate effects following the depreciation of Sterling.
The Specialty Pharmaceuticals division, representing
approximately 29% of Group gross profit, achieved strong growth in
the first half with each of the products in the portfolio
performing as expected.
The transfer of the US license for Ethyol to the Group's US
strategic partner, Cumberland Pharmaceuticals, was completed in H1
of the financial year and the benefits are expected to be seen in
H2. Totect, purchased last year, is on course to start generating
sales in Q4 of the financial year.
Discussions with the regulator continue to move in a positive
direction on Article 31 in respect of lifting the restriction of
using Cardioxane with certain adult patient populations.
The Managed Access division, representing approximately 23% of
Group gross profit, had a strong first half benefiting from the
ramp up of a number of programmes won in the last financial
year.
The Global Access division, representing approximately 12% of
Group gross profit, made solid progress. The number of exclusive
supply agreements increased and the first key contract converted
from early access to on-demand 'point of care' access.
The Clinical Trial Services division, representing approximately
17% of Group gross profit, achieved excellent growth. Activity
within its existing customer base was strong and the division
achieved some important customer wins in H1. Whilst the visibility
for Clinical Trial Services is always more limited, the current
pipeline positions the business to complete another good year of
growth.
Link Healthcare, representing approximately 19% of Group gross
profit, delivered significant organic growth across all geographies
and benefited from the translation effects from the depreciation in
Sterling (more than 35% pro forma growth for six months versus six
months last year). The launch of the Japanese business further
strengthens Clinigen's presence in Asia.
Group overheads increased in line with budget as Clinigen
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.
Cliniport, which strengthens our market proposition by providing
enhanced online access to unlicensed medicines, is ready to be
launched in H2 of this financial year.
Net debt
Net debt at the period end is approximately GBP71 million (31
December 2015: GBP81.5 million). As expected, net working capital
increased in the first half due to the timing of cash flows around
period ends and the completion of a large contract with favourable
working capital characteristics. As previously guided, capital
expenditure has been higher than usual due to budgeted spend on the
IT system, which is currently being implemented.
Outlook
The Group is trading in line with the Board's expectations and
all divisions are well positioned to drive good levels of organic
growth in the second half of the financial year.
The Group expects to publish its interim results for the six
months ended 31 December 2016 on Wednesday 15 March 2017.
*Gross profit growth rates include 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.
- Ends -
Conference call
Shaun Chilton and Martin Abell will host an analyst call at
8.30am on Wednesday, 25 January 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
Clinigen Group plc
Tel: +44 (0) 1283 495010
Shaun Chilton, Group Chief Executive
Officer
Martin Abell, Group Chief Financial
Officer
Matt Parrish, Head of Investor Relations
Numis Securities Limited Tel: +44 (0) 20 7260 1000
Michael Meade / Freddie Barnfield (Nominated
Adviser)
James Black / Tom Ballard (Corporate
Broking)
RBC Capital Markets - Joint Broker Tel: +44 (0) 20 7653 4000
Marcus Jackson / Elliot Thomas / Jack
Wood
Instinctif Partners Tel: +44 (0) 20 7457 2020
Adrian Duffield / Melanie Toyne-Sewell Email: clinigen@instinctif.com
Notes to Editors
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 and is focused in
three areas of global medicine supply; clinical trial, unlicensed
and licensed medicines.
Clinigen Clinical Trial Services is the global market leader in
the management and supply of commercial medicines for clinical
trials.
The Group is also the trusted global leader in ethically
sourcing and supplying unlicensed medicines to hospital pharmacists
and physicians for patients with a high unmet need, through three
of its divisions: Idis Managed Access runs early access programmes
for innovative new medicines. Idis Global Access and Link
Healthcare work directly with healthcare professionals to enable
compliant access to unlicensed medicines on a global basis and
niche essential licensed and generic medicines across Australasia,
Africa and Asia (AAA region).
Clinigen Specialty Pharmaceuticals acquires global rights,
revitalises and markets its own portfolio of niche hospital
medicines.
For more information, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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