24th Sep 2014 10:19
LONDON (Alliance News) - Clinigen Group PLC Wednesday expressed confidence for the current year and raised its total dividend, as it saw profit rise in the year to the end of June.
The speciality pharmaceuticals company proposed a total dividend of 3.1 pence, up from 2.6 pence.
Clinigen posted a pretax profit of GBP21.3 million, up from GBP14.5 million a year before, as revenue rose to GBP126.6 million from GBP122.6 million. Administrative expenses rose GBP3.3 million, due to increases in amortisation and one off costs related to product acquisitions.
Revenue growth was driven by strong organic growth from its Global Access Programmes division and acquisitions in its Speciality Pharmaceuticals business, offsetting a reduction in revenues from its Clinical Trials Supply business.
In the previous year the Clinical Trials Supply business had seen high one-off anti-viral sales, although at a lower margin. US customers remained stable at GBP58 million, and the company had around 1,600 requests to supply clinical supplies.
In Global Access Programmes growth was driven by more activity in existing programmes and new programmes; it shipped 58,000 units during the year, up from 31,000 in the previous year. A number of smaller programmes closed during the year, although this did not hamper growth. The business won contracts with customers including AstraZeneca PLC which will start delivering sales in the current year, it said.
Speciality Pharmaceuticals was predominantly driven by sales of anti-viral treatment foscavir, and boosted by contributions from new products chronic cardiotoxicty treatment cardioxane and anthracycline extravasation treatment savene. The company said that foscavir sales are beginning to level out; and the big opportunities for the products revitalisation and sales growth have now been realised. It expects to license and distribute the product in South Korea in the current year.
For the current year the company said it has two priorities; revitalising its Speciality Pharmaceuticals dexrazoxane asset portfolio and strengthening its global capabilities.
The company said that market dynamics remain strong, with trends affecting its business "looking challenging, but positive." The Clinical Trials Supply business is expected to remain as Clinigen's main revenue generator for the year.
Shares in Clinigen were trading up 1.3% at 461.88 pence per share Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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