4th Jan 2019 08:58
LONDON (Alliance News) - Circassia Pharmaceuticals PLC on Friday reiterated its 2019 views and said that it expects strong sales growth following acquisition of full commercial rights to Tudorza in the US.
Shares in Circassia, however, were down 14% at 47.15 pence on Friday morning in London, potentially due to an expected drop in revenue in the second half of 2018.
The respiratory disease focused pharma company exercised its option to acquire the full US commercial rights to chronic obstructive pulmonary disease drug Tudorza from AstraZeneca PLC in December. COPD is an umbrella term, and covers a number of lung conditions including emphysema and chronic bronchitis.
The company expects revenue for 2018 to be in GBP48 million to GBP52 million range, up from GBP46.3 million revenue in 2017. It posted revenue of GBP28.4 million in the first half of 2018, meaning that revenue is expected to have dropped in the second half of its year to between around GBP19.6 million and GBP23.6 million.
The drop in revenue in the second half was attributed to higher Tudorza rebates in federal channels in the 2018. The fall was also attributed to a delay in the recognition of revenue in China, where Circassia is establishing a new local subsidiary and supply chain.
Establishment of a direct sales operation in China is, however, expected to contribute to strong 2019 sales growth, alongside sales of Tudorza in the US.
The product licence for Tudorza is expected to transfer to Circassia in 2019 after the US Food & Drug Administration completes its review of an application to include more data in the drug's label. The review is expected by the end of March.
Circassia has also filed for the approval of its other COPD drug, Duaklir, in the US. The target date for receiving the outcome of this is March 31.
The company intends to launch Duaklir later in the year if approval is granted, and has launched dedicated promotional teams in advance of this.
A deferred option payment of USD20 million for Tudorza will be payable once Duaklir is approved, in addition to the USD100 million deferred consideration due under the agreement.
"Circassia continued to make progress during 2018, and with our cost containment efforts showing results and revenues growing we look forward to continuing our trajectory towards self-sustainability. We look forward to the coming year, as we roll out our expanded sales force in China and plan to take full control of Tudorza and launch Duaklir, once approved, in the US," said Circassia Chief Executive Steve Harris.
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