Trading Statement

Trading Update

London, 16 January 2014 Sinclair IS Pharma plc (AIM:SPH.L) ("Sinclair" or the "Group"), the international specialty pharma company, announces a trading update for the six months ended 31 December 2013.

• Revenues for H1 expected to be approximately £24.5 million (£23.0 million H1 FY13)

• Like-for like ("LFL") revenues reduced by 7% but approximately £1.6 million sales delayed to H2 due to one-off factors

• Strong H2 expected to produce c7% LFL growth for FY14

• Full year results expected to be in-line with market expectations

Revenues for the six months ended 31 December 2013 were £24.5 million, compared to £23.0 million for the same period last year. This result was impacted by a number of short-term supply, regulatory, and political factors which resulted in approximately £1.6 million of international orders being delayed from H1 into H2.

As in previous years we expect a significant H2 weighting to revenues which will increase this year by the delayed deliveries from H1 and therefore we expect full year LFL revenue growth of around 7%. This implies double-digit LFL growth during H2 reflecting a robust sell-out growth rate both in Europe and Internationally. Results for the year ending 30 June 2014 are anticipated to be in-line with market expectations.

Ahead of budget, Country operations (approximately 65% of total revenue in the period) performance improved slightly with LFL revenues down by 1.6% in the first half, compared with a 5% decline in FY13. There was limited wholesaler stocking during the transfer of manufacturing to Fareva following the closure of the Cléry facility in FY13. This was unwound during the period against a backdrop of improving trends in UK, France and Germany and a notable improvement in Italy. The full year is expected to deliver a return to LFL growth in Europe as previously forecast.

Sinclair experienced short-term H1 weakness in International operations (approximately 35% of total revenue in the period) with a 17% decline in LFL performance. Flooding at a tube supplier, regulatory changes resulting in Kelo-cote® and Bio-Taches® having to be re-registered in Saudi Arabia, and Kelo-cote® price re-negotiations in China were key issues which have now been resolved with deliveries now scheduled early in H2. In addition to FX uncertainty, political difficulties in Venezuela have delayed the renewal of the Kelo-cote® import license resulting in very limited sales in this important market. Good visibility on international orders provides confidence of a return to double-digit LFL sales growth for the full year.

Sculptra® contributed revenue of £2.6 million for the six months to 31 December 2013. Through the period Sinclair continued to increase sales, marketing and training, both to support the product and in preparation for the Perfectha® acquisition. Sculptra® units have grown by 31% offset by a 12% price reduction in the 12 months since launch. Going forward, we expect volume growth to continue at around 25%, implying franchise sales in FY14 of approximately £7.0 million.

Sales of Kelo-cote® gel were broadly flat on H1 2013 largely as a result of the now resolved issues. With delayed sales to be delivered in early H2, the Kelo franchise growth rate is expected to reach c20% for the full year. Atopiclair® is the stand out performer in the period with LFL growth of 49% achieved from Menarini's launch in Italy and continued growth in international operations.

The past 12 months has seen the build-out of the Sinclair aesthetic dermatology sales and marketing infrastructure to support Sculptra®, Kelo-cote® and more recently Perfectha®. Since the end of the H1 period, in a deal which is expected to be earnings accretive from FY15, Sinclair has acquired Laboratoires Obvieline SA including the trademarks and full rights to the Perfectha® HA dermal filler range.

Several new product and distribution deals have been signed recently in addition to Perfectha®. Kelo-cote® will be launched in Japan by PRSS, a specialist aesthetics distributor. Kelo-cote® already has regulatory approval in Japan and it is anticipated that sales to plastic surgeons, dermatologists and aesthetic clinics will start this financial year. Sinclair will further extend its relationship with Menarini by launching Aloclair Plus® in Russia and the CIS through its subsidiary Berlin-Chemie in an exclusive 10 year agreement. First revenues are expected in Q4 2015. The Group has entered into a strategic OTC partnership with Kent Pharmaceuticals ("Kent") in the UK. Kent will market the Kelo franchise, Aloclair Plus® and Flammasun® into pharmacies and supermarkets using its 24 strong sales force and complementing Sinclair's specialist in-house sales to clinicians. Initial sales are expected in the current financial year.

We have recently acquired global rights to Eurograft-M, a high-value and novel stem cell treatment for vitiligo (hypopigmentation). Launch is scheduled for FY16 following final development work and registration. Vitiligo is especially prevalent in the Indian sub-continent and the product will fit well into Sinclair's emerging market aesthetic portfolio.

Chris Spooner, CEO, commented "A combination of H1 one-off factors and good sell-out trends provide confidence for robust H2 growth and we are confident of meeting market expectations for the year. In addition the focus on aesthetic dermatology including the recent Perfectha® acquisition along with multiple other business development initiatives augur well for strong growth and rising profitability".

Ends

For further information please contact:

Sinclair IS Pharma plc Tel: +44 (0) 20 7467 6920

Chris Spooner

Alan Olby

Robert Taylor

Peel Hunt LLP Tel: +44 (0) 20 7418 8900

James Steel

Oliver Jackson

Notes to Editors:

About Sinclair IS Pharma plc - see www.sinclairispharma.com

Sinclair IS Pharma is an international specialty pharmaceutical company centred on Dermatology, in particular Aesthetics, Wound care, and Skin care. The Group has a direct sales and marketing presence in the top five European markets and a rapidly growing International division concentrated on the Emerging Markets through long term multi-product, multi-country, sales, marketing and distribution deals with key strategic partners.

"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: Some or all of the statements in this document that relate to future plans, expectations, events, performances and the like are forward‐looking statements, as defined in the US Private Securities Litigation Reform Act of 1995. Actual results of events could differ materially from those described in the forward‐looking statements due to a variety of factors.