Consort Medical Confident On Wixela Progress As Profit Declines

(Alliance News) - Consort Medical PLC on Thursday reported a "solid" annual performance, despite a 28% drop in profit.

Drug and delivery device maker Consort reported pretax profit of GBP12.5 million for the 12 months to April, down 28% on the year before, but the underlying figure was flat at GBP38.2 million.

Consort's revenue fell 1.9% at reported currency rates to GBP305.1 million, and declined 1.7% at constant rates.

The company is paying a final dividend of 13.8 pence for the year, meaning its total return has been increased 1.9% on the year before, reaching 21.4p.

Consort's drug delivery services business Bespak's revenue dipped 0.6% to GBP126.2 million, with earnings before interest and taxes down 3.4% to GBP25.6 million.

This revenue performance came despite the delay of Mylan NV's Wixela launch. Elsewhere, demand was strong for existing products, Consort said.

Wixela, a generic form of GlaxoSmithKlinePLC's Advair drug for chronic obstructive pulmonary disease, is expected to deliver "modest" revenue growth in the near-term.

The Aesica active pharmaceutical ingredient unit registered a 2.6% constant currency drop in revenue to GBP178.98 million, with Ebit down 2.5% to GBP15.7 million.

Looking ahead, Consort said: "The board is confident of Consort's future prospects which are further supported by the addition of two new significant contracts. The near-term outlook will reflect the commercial success of Mylan's Wixela (generic Advair) and the progression of the development pipeline.

"We also continue to assess acquisition opportunities that have the potential to deliver additional growth and a broader offering through access to new geographic markets and complementary technologies and capabilities."

Shares were up 1.6% on Thursday morning at 892.00 pence each.