RE: CLIN, Results Outperform.26 Sep 2014 10:54
I.C. today
Clinigen still clinical
When drugs fail to obtain licenses or are pulled off the market, clinicians can miss out on vital elements of medical treatment. Clinigen (CLIN) fills this gap, acquiring, revitalising and then distributing the drugs. This focus helped it record a 20 per cent rise in underlying cash profits for the year to June.
Sales at Clinigen’s key clinical trials supply division fell 5 per cent to £84m, reflecting a one-off bump in antiviral sales in 2013. But it did record a 45 per cent increase in supply requests, as the company widened its market share, so sales should rebound. It also signed an exclusive supply agreement for an oncology drug with an international pharmaceutical company.
Clinigen’s specialty pharmaceuticals division grew its product range by acquiring Savene and Ethyol, two oncology support products. That should help to compensate for slowing sales of Foscavir now its revitalisation is largely complete. Clinigen also convinced European regulators to lift the suspension order on its injectable antibiotic Vibativ, which combats hospital-acquired pneumonia.
Meanwhile, sales surged by more than half at its global access programs segment, as it shipped 58,000 drug units – up 87 per cent – to over 75 countries. The division also added AstraZeneca (AZN) and Eisai to its client list.
Broker Numis Securities expects pre-tax profit of £29m, giving EPS of 26.1p, rising to £35m and 31.6p in 2015-16.
C Clinigen’s growing product range and diversified business model should serve investors well. Its shares trade at 18 times forecast earnings – a discount to the sector average of 21. We reiterate our buy tip. TM
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