Year end trading update
Clinigen Group plc (AIM: CLIN, ‘Clinigen’ or the ‘Group’), the global pharmaceutical and services company, today provides an unaudited trading update for the year ended 30 June 2018.
The Group has had a strong year, combining a good financial performance with excellent progress on delivering the Group’s strategy. The Board expects results to be in line with current market expectations and the Group is well positioned to drive further growth across all parts of the business in the year ahead.
Revenues increased by around 26% on a reported basis and by around 27% on a constant currency basis* compared to last year. 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** increased by around 14% on a reported basis and by around 16% on a constant currency basis*. Following tight cost control and benefits obtained from the integration of the acquisitions, EBITDA growth is expected to increase at a higher rate than gross profit.
Commercial Medicines continued to deliver excellent growth with the Group continuing to realise the benefits of its expanding geographical presence. The performance in Clinical Trial Services (‘CTS’) and Unlicensed Medicines strengthened in the second half with the latter benefiting from a number of new early access programs starting. Integration of Quantum is going to plan with the unlicensed to licensed portfolio performing well.
In addition, today the Group announced it has acquired from Novartis the global rights outside the United States to Proleukin®. Proleukin® is indicated for use in metastatic renal cell carcinoma, as well as for metastatic melanoma in certain markets and is a good fit with the Group’s current Commercial Medicines portfolio of products in the oncology and infectious disease therapy areas - see separate press release.
Shaun Chilton, Group Chief Executive Officer of Clinigen, said:
“This year has demonstrated the strength and diversity of the Group’s portfolio. Our largest business operation, Commercial Medicines, has had an excellent year more than offsetting weakness in CTS.
“I am particularly pleased with the performance from our acquisitions in the year, Quantum and IMMC, and the performance in the Africa and Asia Pacific region.
“With a strong balance sheet and cash generative business model, our strategy remains to drive growth across our portfolio organically, by making acquisitions and through geographic expansion.”
* Constant currency is growth applying prior period’s actual exchange rate to this period’s result.
** Gross profit growth rates exclude the release of the fair valuation on inventory from business acquisitions.
- Ends -
Clinigen Group plc
Shaun Chilton, Group Chief Executive Officer
Martin Abell, Group Chief Financial Officer
Matt Parrish, Head of Investor Relations
Tel: +44 (0) 1283 495010
Numis Securities Limited
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black / Tom Ballard (Corporate Broking)
Tel: +44 (0) 20 7260 1000
RBC Capital Markets - Joint Broker
Marcus Jackson / Elliot Thomas
Tel: +44 (0) 20 7653 4000
Adrian Duffield / Melanie Toyne-Sewell / Alex Shaw
Tel: +44 (0) 20 7457 2020
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.
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.
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
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.