30th Apr 2018 11:39
LONDON (Alliance News) - Sinclair Pharma PLC said Monday its 2017 loss narrowed on higher revenue and cost cuts.
The pharmaceutical company also said that it has decided to directly sell and distribute its Silhouette InstaLift facelift treatment in the US going forward, which is expected to hit 2018 earnings.
In 2017, the company's pretax loss narrowed to GBP4.3 million from GBP11.6 million the year prior. This was after revenue rose to GBP45.3 million from GBP37.8 million the year before.
Profit performance was also helped by a fall in administrative costs and a more than halving of finance costs. Administrative costs fell to GBP17.1 million from GBP18.4 million the year prior. Finance costs were GBP2.2 million from GBP4.7 million the year before.
During the year, Sinclair refinanced a GBP10 million debt facility with Silicon Valley Bank with a new five-year GBP23 million facility from Hayfin Capital Management on "more flexible terms."
"2017 was another year of significant progress for Sinclair, during which we continued to deliver on our strategy resulting in continued revenue acceleration and a return to EBITDA profitability," Sinclair Chief Executive Officer Chris Spooner said. "The recent launch of Ellanse in Brazil and the launch of our new affiliate in South Korea will be significant growth drivers for the group going forwards."
Earnings before interest, taxes, depreciation and amortisation for 2017 stood at GBP400,000 compared to a loss of GBP6.1 million the year prior.
"Having considered a range of options in the US we are excited to confirm today that we will be developing our own US direct operation for the sale and distribution of Silhouette InstaLift going forwards," Spooner added. "We firmly believe that retaining control of this highly differentiated product in this significant market will provide the group with a platform to promote additional products and drive long-term value and optionality for our shareholders."
Sinclair took control of InstaLift sales from the start of April. This will result in reduced gross margins for 2018 and a GBP1.5 million inventory write-down charge in the first half. The company expects its US operations to be Ebitda positive in 2019.
"The board believes that the difficulties in the US, while disappointing, are nonetheless temporary and the Silhouette InstaLift opportunity remains significant," Sinclair explained. "The board continues to expect an acceleration in revenue growth and operating leverage in 2019 as the business gains momentum in its key strategic markets including the US, Brazil, South Korea and the Middle East.
"In the medium to longer term," Sinclair added, "launches of Perfectha Lidocaine, Silhouette Refine, Ellanse in the US and China, and Silhouette InstaLift in China, supported by robust aesthetic market fundamentals, are expected to drive sustainable premium growth for the group."
Shares in Sinclair were 14% lower at 14.89 pence on Monday.
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