14th Jul 2020 11:04
(Alliance News) - Clinigen Group PLC said Tuesday it expects to report a double digit rise in profit and revenue for its recently ended financial year due to a positive performance in Commercial Medicines and Unlicensed Medicines.
However, the pharmaceutical services firm's guidance for a rise in gross profit for its current financial year ending June 30, 2021, between 5% and 10% is expected to be at the lower end of the range due to the impact of Covid-19 and the expected launch of a generic Foscavir in the EU.
Shares in Clinigen were 12% lower at 700.00 pence on Tuesday in London.
For the year to the end of June, Clinigen said adjusted earnings before interest, tax, depreciation and amortisation is expected to rise by 29% from the GBP100.8 million reported the year before.
Gross profit for the year is set to rise by 20% year-on-year from GBP182.3 million.
Meanwhile, revenue is set to grow by at least 13% on a reported basis from GBP456.9 million the year before, and by 17% on a net constant currency basis.
In Commercial Medicines, there was a good performance across the portfolio, with Foscavir doing well despite increased competition from a novel product.
Looking ahead on Foscavir, Clinigen said it is not possible to quantify the financial impact from the launch of a genetic alternative, however the group is already working on a strategy to mitigate loss and expects the effect to be captured within its medium term gross profit guidance.
Meanwhile, in Unlicensed Medicines, Global Access performed well despite ongoing headwinds in the UK Specials business, Although contracting for exclusive supply agreements was delayed by the pandemic, but Clinigen expects this to improve in the current financial year.
Managed Access's overall performance was weaker, in spite of a stronger second half driven by a record number of program wins.
Finally, within the Clinical Services business, although the pandemic led to a reduction in activity as clinical trials were delayed or cancelled, however the performance of infrastructure services provider CSM and CTS was encouraging, with both being broadly flat in a market backdrop Clinigen believes was 30% to 50% lower in the fourth quarter.
"We have delivered a robust performance, showing strong organic growth despite the difficult trading conditions in the last few months of the financial year and in line with our previous guidance," said Chief Executive Officer Shaun Chilton.
"We continue to see organic growth in line with our medium term guidance at this early stage of the new financial year, despite Covid-19 and expected competitive pressure to Foscavir. As we look beyond FY21, we see growth significantly accelerating as we onboard new asset Erwinase and we continue to gain share in the end-markets we serve," Chilton added.
Clinigen will publish its annual results on September 17.
By Dayo Laniyan; [email protected]
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