30th Mar 2016 07:51
LONDON (Alliance News) - Sinclair Pharma PLC on Wednesday said it has agreed an amendment to its AQTIS acquisition agreement as it reported a wider pretax loss on lower revenue for the first half of its financial year.
Sinclair said it has agreed an amendment to the acquisition agreement related to AQTIS Medical BV, which Sinclair acquired in March 2014.
Under the amendment, Sinclair will make an upfront cash payment of EUR15.0 million to the vendors to settle all future milestones which had remained due under the original agreement.
Prior to the agreement, sales and US approval milestones for Ellanse, the combined dermal filler and collagen stimulator product range Sinclair acquired through the AQTIS deal, had been forecast to reach EUR36.0 million, payable over the next three to five years.
Sinclair said the agreement will result in a one-off GBP8.0 million credit being booked in its results for the current financial year to the end of June.
The amendment came as Sinclair said its pretax loss for the half to the end of December grew to GBP22.7 million from GBP17.8 million a year earlier. The increased loss was partly driven by one-off finance costs, but also by revenue declining to GBP7.7 million from GBP10.5 million in its continuing, aesthetics-focused business, due to customer de-stocking.
Sinclair does expect its revenue to rise in the second half and said its third-quarter revenue is set to outpace that of the entire first half at around GBP8.0 million, driven by Ellanse sales.
In the half year, Sinclair struck a deal to sell its non-aesthetics business to Alliance Pharma for GBP132.0 million in cash. Sinclair said the deal would simplify its operations and sharpen its portfolio to focus on aesthetic-led, minimally-invasive treatments.
Sinclair said on Wednesday it remains in an offer period as it continues to assess options for the remaining aesthetics business.
"Our decision to focus the business entirely on aesthetics has allowed us to build solid foundations to support future growth. We have built an exciting portfolio of high growth, differentiated products that address patient and physician demand for better, long-lasting natural results," said Chief Executive Chris Spooner.
"The de-stocking process is largely complete and sales for the third quarter are expected to exceed first half sales. Our expectations for calendar 2016 and beyond remain unchanged, and we are highly confident in the immediate and longer term outlook," Spooner added.
Sinclair shares were up 2.4% to 34.30 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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