RE: A nice set of strong2 Mar 2016 09:24
<b>INVESTMENT OVERVIEW
Clinigen unveils latest deal alongside strong set of interims
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07:29 02 Mar 2016</b>
The company's results reveal a company in rude health - and one still on the acquisition trial.
Clinigen unveils latest deal alongside strong set of interims
Clinigen seems to have found the formula for financial success.
The ambitious specialty pharma group Clinigen (LON:CLIN) revealed the positive financial impact of a recent acquisitions and tie-ups as it unveiled its interim results.
Alongside in a separate announcement it said it had bulked up its medicine cabinet with the acquisition of a product called Totect, which is used in cancer care.
The terms of the deal with American firm Biocodex were not disclosed, although Clinigen said it is making an upfront payment along with further instalments over the next 12 months.
Totect, which is also known as dexrazoxane, reverses the toxic effects of anthracycline, which is used in chemotherapy. It used to repair damage where the cancer drug accidentally leaks outside the vein and into the surrounding tissue.
The acquisition, together with Clinigen’s purchase of Savene in 2014, gives the company “a complete global footprint” in this specialist area of medicine.
David Moran, managing director of Clinigen’s speciality pharmaceuticals business, said the Totect was “a natural target for us as we continue to focus on acquiring niche, hospital-only therapies”.
Separately, the group unveiled its first-half results, which showed a more than doubling of revenues to £157.1mln and a 74% rise in operating profits to £23.5mln.
Clinigen’s cash balance grew by 96% compared with a year earlier to £22.1mln, while the interim dividend will be boosted by 18% to 1.3p a share.
The results statement revealed the company is starting to feel the benefits from its £225mln purchase of Idis, a specialist in the ethical supply on unlicensed medicines, and Link Healthcare, which has become part of Clinigen’s managed access division.
Its global footprint will expand further thanks to a global alliance with NASDAQ-listed Cumberland Pharmaceuticals.
Today’s results release showed all the commercial and most of the operational integration is complete at Idis.
The firm also told investors that a “revitalisation” of its newer products had driven the strong performance of its speciality pharma division.
The company is positioned for a “good” second half, it added.
"We have made significant progress towards meeting our strategic objectives as a result of the acquisitions of Idis in April and Link Healthcare in October last year, and our alliance with US Specialty Pharmaceuticals company, Cumberland Pharmaceuticals,” said chief executive Peter George.
"We are firmly established as the global market leader in the management and supply of unlicens