Clinigen Group plc Agreement (6443D)
30 June 2021 - 7:11PM
UK Regulatory
TIDMCLIN
RNS Number : 6443D
Clinigen Group plc
30 June 2021
30th June 2021
Clinigen signs agreement to divest its UK compounding
business
Clinigen Group plc (AIM: CLIN, 'Clinigen'), the global
pharmaceutical Products and Services company, today announces the
disposal of its non-core UK Specials manufacturing and Aseptic
compounding business ("the divestment") to Target Healthcare Ltd
('Target Healthcare') for a total consideration of up to GBP7.75m
(GBP5m up-front).
The compounding business sourced and manufactured specific
unlicensed medicines referred to as 'specials' in a range of
formulations for supply across the UK market and had been part of
Clinigen since it acquired Quantum Pharma in 2017. The transaction
will include the transfer of two UK facilities in Burnopfield and
Follingsby, and 198 UK-based employees. The acquisition of Quantum
Pharma was made primarily for its 'unlicensed-to-licensed'
capability, which will be retained.
This disposal represents a further simplification to the
Clinigen structure which is now focused on its two core divisions:
Services and Products and removes complexities associated with
on-going management of non-core sites and staff.
In the financial year 2020, the divestment contributed Net
Revenue of GBP38.8m and GBP1.0m total adjusted EBITDA. The disposal
is expected to result in an exceptional non-cash loss of circa
GBP9.6m in FY21.
As part of the Quantum Pharma transaction in 2017, Clinigen also
acquired the licensed medicines business Colonis and the contract
development organisation Lamda, both of which it will retain to
enable the continued development of new niche medicines for supply
into licensed and unlicensed markets.
The return on investment on the total Quantum Pharma transaction
for the financial year 2020 was 14.0% and this is now expected to
be more than 17% for the financial year 2021 following today's
transaction and driven by the continued strong growth of the
Colonis product portfolio in particular.
Clinigen will continue to source and supply unlicensed medicines
in the UK and globally through its Products and Services
divisions.
Shaun Chilton, Chief Executive Officer of Clinigen, said:
" We have continued to simplify our offering across the
lifecycle platform and are fully focused on serving the needs of
patients, healthcare professionals and pharmaceutical companies,
from clinical trials through to commercialisation and beyond.
"The UK Specials and Aseptics offerings are important for
patients in the UK with unmet medical needs. Whilst non-core assets
to Clinigen, we are pleased that those patients will continue to
receive the focus and drive they need from Target Healthcare. On
behalf of Clinigen, we thank the Burnopfield and Follingsby teams
for their work and wish them well under their new management
team."
Lewis Campbell, Managing Director of Target Healthcare said:
"We are pleased to reach this agreement with Clinigen to take
control of these important businesses and staff members which will
provide a fantastic platform for growth across the UK for Target
Healthcare, and ensure patients continue to get the medicines they
rely on."
Information within this announcement is deemed by the Group to
constitute inside information under the Market Abuse Regulation
(EU) No. 596/2014
- Ends -
Contact details
Clinigen Group plc Tel: +44 (0) 1283 495010
Shaun Chilton, Group Chief Executive Officer Investors@Clinigengroup.com
Nick Keher, Group Chief Financial Officer
Rob Fox, VP Investor Relations and Corporate Development
Torreya Partners (Europe) LLP - Advisor Tel: +44 (0) 207 451 4550
Alan Selby
Numis Securities Limited - Nominated Adviser & Joint Broker Tel: +44 (0) 20 7260 1000
James Black / Garry Levin / Freddie Barnfield Clinigen@Numis.com
RBC Capital Markets - Joint Broker Tel: +44 (0) 20 7653 4000
Marcus Jackson / Elliot Thomas
Consilium Strategic Communications Tel: +44 (0) 20 3709 5700
Mary-Jane Elliott / Matthew Cole / Matthew Neal
Notes to Editors
About Clinigen
Clinigen Group plc (AIM: CLIN) is a global, specialist
pharmaceutical services and products company focused on providing
ethical access to medicines. Its mission is to deliver the right
medicine to the right patient at the right time. The Group operates
from sites in North America, Europe, Africa, and the Asia
Pacific.
Clinigen has more than 1,000 employees across five continents in
16 countries, with supply and distribution hubs and operational
centres of excellence in key long-term growth regions. The Group
works with 34 of the top 50 pharmaceutical companies, interacting
with over 5,000 hospitals across more than 115 countries.
For more information on Clinigen, please visit
http://www.clinigen.com
About Target Healthcare
Target Healthcare Limited is a UK based company founded in 2012.
Target Healthcare Limited has become a highly reputable MHRA
approved pharmaceutical wholesaler, supplying generic, branded, and
unlicensed medicines to Pharmacies, Dispensing Doctors, Hospitals,
Pharmaceutical Wholesalers and Buying Groups throughout the UK and
across Europe.
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