LONDON (Alliance News) - Shares in Consort Medical PLC fell early Tuesday after the drug delivery company warned that delays to Mylan NV's Wixela inhaler for lung disease treatment will hit annual profit.
Shares in Consort Medical were down 22% at 770.00 pence each.
The company predicts a GBP3 million hit to its pretax profit for the year ending April 30, 2019, due to the delay. In 2018 financial year, the company posted pretax profit of GBP17.3 million and revenue of GBP311.1 million.
Wixela inhaler, which has been rejected twice by US regulators, is the generic version of GlaxoSmithKline PLC's Advair inhaler for treatment of asthma and chronic bronchitis.
"Whilst the delay in approval of this programme and near-term anticipated negative impact on our business is disappointing, our view of the peak sales opportunity for the product remains unchanged," said Consort Medical Chief Executive Jonathan Glenn.
Consort Medical also reported a 28% rise in pretax profit for the six months to the end of October to GBP9.6 million from GBP7.5 million. Revenue decreased slightly to GBP153.7 million from GBP152.5 million.
The company's net finance costs in the first half decreased 25% to GBP1.8 million from GBP2.4 million due to lower pension finance charges as a result of reduced pension deficit obligations.
The UK-listed company upped its interim divided by 2.2% to 7.60p from 7.44p paid out last year.
"Consort has delivered profit growth and improved margins in both divisions. Bespak has grown its respiratory business while Aesica margins and profits have improved. We are committed to driving continued growth in the business," said CEO Glenn.
Glenn added: "We also continue to assess acquisition opportunities that deliver additional growth and a broader offering through access to new geographic markets and complementary technologies and capabilities. The board is confident of Consort's future prospects supported by a robust financial position and a broad development pipeline."
Consort Medical's Bespak business - which designs, develops and manufactures medical delivery devices - recorded a 1.7% revenue rise in the first half to GBP61.6 million from GBP60.6 million last year. Earnings before interest, taxes, depreciation and amortisation stood for Bespak increased 2.6% to GBP16.0 million from GBP15.6 million, on a increased margin of 26.0% from 25.7%.
The company said Bespak's "continued growth" of its respiratory products led to the rise in revenue.
The Aesica business - which manufactures application programming interfaces - reported a 2.4% decrease in revenue to GBP90.9 million from GBP93.1 million last year.
The division's Ebitda increased 1.7% to GBP11.7 million from GBP11.5 million. Margins improved to 12.9% from 12.3%.
