Clinigen today provides a trading update for the six months ended 31 December 2017.
| Clinigen, the global pharmaceutical and services company, today provides a trading update for the six months ended 31 December 2017. The Group has traded well in the first half, in line with the Board’s expectations. Group revenues increased around 28%. This is higher than the growth in gross profit due primarily to an increased level of pass through costs within the early access part of Unlicensed Medicines. Gross profit*, viewed by the Board as the best measure of top line growth, increased by around 10% compared to last year. Growth has been driven by a combination of a strong performance by Commercial Medicines and two months contribution from Quantum Pharma plc (‘Quantum’). Commercial Medicines, representing around 49% of Group gross profit and including the commercial business of Quantum, delivered excellent growth, with all products across the portfolio performing strongly. Unlicensed Medicines, representing around 41% of Group gross profit, benefited from two months contribution from the related business within Quantum and IMMC. In early access, performance was affected by a number of larger programmes coming to the end of their lifecycle. There are a significant number of new programmes now starting that are expected to drive stronger second half performance. Clinical Trial Services, representing around 10% of Group gross profits, was below last year following two years of double digit growth. Performance is expected to step up in the second half. The Group acquired IMMC, Japan’s largest supplier of unlicensed medicines, on 23 October 2017 and Quantum on 1 November 2017. Both businesses performed well in the two months following their acquisition. Following a period of investment last year, underlying Group overheads are expected to grow at a slower pace than gross profit. The Group has achieved another good cash flow performance. Following the acquisitions and the payment of the final scheduled deferred consideration on the Link acquisition, net debt increased to around £142m as at 31 December 2017 (31 December 2016: £70.9m). Shaun Chilton, Group Chief Executive Officer of Clinigen, said: “We have delivered good growth and made strong progress against our strategic priorities, which have been enhanced by the acquisition of Quantum and IMMC. “Our strategic priorities remain unchanged. We have and will continue to drive organic growth and search for selective acquisitions to complement our existing offering and capabilities. “We are well positioned to deliver another good year of progress.” The Group expects to publish its interim results for the six months ended 31 December 2017 on Tuesday 27 February 2018. *Gross profit growth rates exclude the release of the fair valuation on inventory from business acquisitions. |
