22nd Jul 2009 09:24
Sinclair Pharma plc Trading update for the year ending 30 June 2009: EBITDA expected to be in line with board expectations
22 July 2009, Godalming, UK: Sinclair Pharma plc (SPH.L), the international specialty pharma company, today issued a business and trading update for the year ending 30 June 2009. This statement is issued ahead of the close period preceding the publication of its preliminary results, which is planned for the end of September.
Revenues for the year ended 30 June 2009 are expected to be approximately 29.7 million, impacted to some extent by wholesaler de-stocking in the face of the economic downturn. However, a combination of greater revenues from licensing fees, prudent financial management and tight cost control means EBITDA is expected to be in line with board expectations.
BUSINESS & OPERATIONS UPDATE
During the 2009 financial year, Sinclair's management team has taken decisive and proactive steps to restructure and streamline the business, enabling it to reduce costs while increasing the depth of management expertise.
Steps taken in recent months include the purchase of the outstanding 49.95%, owned by Laboratorios Novopharma S.L., in Sinclair Pharma Espana, the appointment in France of Celine Genty, in Italy of Paolo Prioglio and in Spain of Santiago Calavia, as Country Operations Directors. Sinclair has also streamlined its operations in the UK and as a result of the regulatory changes in the market, has closed its UK sales operation.
In May, Sinclair appointed Christophe Foucher as Chief Operating Officer with responsibility for all commercial and supply chain activities in the company. He is implementing a new commercial strategy which will enable Sinclair to optimise the core business and clearly focus on its long term goals. A further update on Sinclair's sales and marketing structure will be provided at preliminary results in September.
Sinclair also confirmed it continues to work with OraPharma in the US towards the launch of Decapinol during the new financial year. OraPharma has made a payment of US$235,000 to Sinclair following validation of the Italian manufacturing site. Any further news on progress will be given as appropriate.
Sinclair continues to exploit other potential biofilm applications of Decapinol and initially received options fees totalling $350,000, from a major animal health company to enable the company to evaluate the use of Decapinol to treat or prevent periodontal disease in companion animals. This evaluation period has now been extended for a period of six months for a further fee of $250,000.
Commenting on today's pre-close announcement, Dr Michael Flynn, Chief Executive of Sinclair Pharma, said:
"These are challenging times for all companies and Sinclair is no exception. In thecurrenteconomic environmentwe have seen the impact on our business of wholesalers reducingtheir stockholdings as a result of cash constraints. This has meant a one off reduction in sales during the year and going forwardsmaller,more frequentordersfor Sinclair. Within this context, EBITDA is in line with board expectations and has been achieved through additional licensing feesand cautious financial management.
"Webelieve our business presentsseveral significant opportunities for ongoing growth. While revenues generated fromlicensing feeshave off-set the effects of de-stocking to some extent, our short-term goalremains to achieve sustainable profitability based on recurring product revenues.
"Our substantial product portfolio and pipeline provides significant potential to support us in achieving this goal withinitial data for FY2010 indicating that underlying sales growth is now returning to previous trends. In addition, we have taken decisive steps over the past year to ensureour organisation is streamlined, agile and aggressively focused on driving product revenues, without sacrificing margins."
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For further information please contact:
Sinclair Pharma plc Tel: +44 (0) 1483 410 600
Dr Michael Flynn, CEO
Jerry Randall, CFO
Mariyam Rawat, Director of Communications & Investor relations
Email: [email protected]
Capital MS&L
Mary Clark, Anna Mitchell Tel +44 (0)20 7307 5340
Notes to Editors:
About Sinclair Pharma Plc www.sinclairpharma.com
Sinclair Pharma plc is an international specialty pharmaceutical company providing solutions to treat dermatological, oral care & gynaecological diseases through advanced surface technology and innovative delivery system. It has a growing sales and marketing operation that is already present in France, Italy, Spain and Portugal, and a complementary marketing partner network that spans more than 80 countries.
"Safe Harbour" 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.
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