Commercial Medicines

Clinigen’s Commercial Medicines operation has a threefold strategy. It acquires global rights to niche hospital-only and critical care products and revitalises them back to sustained growth.

It provides access to licensed and branded generic medicines as a commercial partner of the owner/innovator in regions such as Africa and Asia Pacific. In addition, it has an ‘UL2L strategy, where it looks to take unlicensed medicines with commercial potential and develops them into licenced medicines, helping to address unmet medical need.

Commercial Medicines represents 46% of adjusted Group gross profit. This operation was the biggest driver of Group profit, increasing adjusted gross profit by 35% due to an excellent performance across most of the portfolio and eight months’ contribution from Quantum. Adjusted gross profit on a constant currency basis increased by 37% compared to last year.

Gross margin was 72.7% (2017: 71.3%) with the increase due to the change in mix towards higher margin products.

£87.9

revenue (£m)

£64.0m

adjusted gross profit (£m) +35%

72.7%

gross profit % +1.4%

2.1m

units shipped

53

countries shipped to

PRIORITIES

  • Continued revitalisation of existing products, particularly those recently acquired
  • Development of the Quantum pipeline and further conversion of UL2L medicines
  • Further licensing and distributing regional products
  • Add further products to portfolio

View Commercial Medicines

 


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 programs to innovative new medicines, provides ‘on-demand’ access globally to medicines which remain unlicensed at the point of care, and through Quantum, manufactures, procures and supplies unlicensed medicines.

The Unlicensed Medicines operation represents 44% of adjusted Group gross profit. Gross profit increased by 19%, benefiting from eight months’ contribution from the related business within Quantum and IMMC. Adjusted gross profit on a constant currency basis increased by 21% compared to last year.

During the year this operation shipped 1.9m units of drugs across 104 countries.

£215.6m

revenue (£m)

£62.1m

adjusted gross profit (£m) +19%

208*

number of exclusive supply agreements

1.9m

units shipped

104

countries shipped to

* Number of exclusive supply agreements includes 110 MAPs (2017: 107), 39 exclusive ‘on-demand’ access client supply agreements (2017: 31) and 59 exclusive customer supply agreements in Quantum (2017: nil).

PRIORITIES

  • Increase number of exclusive supply agreements
  • Further strengthen client and customer relationships
  • Drive international expansion
  • Leverage Group sourcing and procurement capability

View Unlicensed Medicines 

 


Clinical Trial Services

CTS is the global market leader in the specialist supply and management of quality-assured comparator medicines and services to clinical trials and IITs.

Following two years of double digit growth (2017: 18%; 2016: 21%), CTS had a challenging year, with adjusted gross profits, representing 10% of adjusted Group gross profit, decreasing 40%. Adjusted gross profit on a constant currency basis also decreased by 40% compared to last year.

Although the breadth of activity was good, with the business serving 100 clients in the year (2017: 93 clients), CTS did not have the usual number of bigger programs that normally represent an important part of the divisions’ gross profit. Three clients generated more than £1m in gross profit (2017: six), contributing 48% of the division’s gross profit (2017: 80%). The gross margin of 18% decreased versus prior year (2017: 21%) due to the change in mix towards lower margin products and activity.

£77.7m

revenue (£m)

£14.0m

adjusted gross profit (£m) -40%

0.3m

units shipped

32

countries shipped to

PRIORITIES

  • Further development of expanded services
  • Formalise IIT service offering
  • Increase client penetration
  • Enhance sourcing capabilities
  • Extend markets

View Clinical Trial Services