TIDMCLIN
RNS Number : 0600C
Clinigen Group plc
17 January 2018
17 January 2018
HY trading update: good H1 performance with profits up over
10%
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 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 GBP142m as at 31 December 2017 (31 December 2016:
GBP70.9m).
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.
- Ends -
Conference call
Shaun Chilton, CEO and Martin Abell, CFO will host an analyst
call at 8.30am on Wednesday, 17 January 2018. 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
/ Alex Shaw 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 ethical 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 licensed 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
Clinigen acquires global rights to niche hospital only and
critical care products, revitalising these assets around the world
and returning them back to sustained growth. It also provides
access to licensed and branded generic medicines in the Africa and
Asia Pacific region.
The Group also has an 'unlicensed to licensed' strategy, where
it looks to take unlicensed medicines with commercial potential and
licences them, helping to address unmet medical need and allowing
the Group to capitalise on its market-leading positions.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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