Sinclair Pharma Regulatory News (SPH)

Sinclair IS Pharma plc

Trading Update

London, 15 July 2014 Sinclair IS Pharma plc (SPH.L), ("Sinclair" or the "Group") the international specialty pharma company, announces a trading update for the financial year ended 30 June 2014 ahead of its full year results which will be announced in mid-September 2014.

Revenues for the full year were £63.3 million after the expected strong second half performance for the Group offset by an adverse impact of £0.8 million from the strength of Sterling. Revenue growth was 14% on a reported basis and 4.0% on a like-for-like ("LFL") basis for the full year with a strong 12.3% LFL growth in H2 after the 7.5% LFL decline in H1. Adjusted EBITDA* for the full year is expected to be in line with market expectations despite currency headwinds.

Sinclair made significant strategic and operational progress during the year with the creation of a highly differentiated, fast growing, aesthetics portfolio. The acquisitions of Perfectha®, Ellansé™ and Silhouette® have been swiftly integrated and contributed to the strong performance in second half revenues and profits. As anticipated a number of short term issues which impacted the first half were satisfactorily resolved.

HA (hyaluronic acid) fillers account for over 90% of dermal filler procedures in Sinclair's key territories and the Perfectha® range of HA fillers acquired in early January provides critical mass in aesthetics. Perfectha® contributed revenues of £3.8 million in the second half, compared with £2.4 million for the same period last year pre-acquisition and ahead of management expectations. Ellansé™ and Silhouette®, both next-generation collagen stimulators, complement Sculptra® and strongly enhance Sinclair's competitive position in the global aesthetics market. These two brands continued their recent rapid growth in emerging markets, particularly Asia, with Ellansé™contributing £1.3 million to Group revenues in its first three months and Silhouette®£0.8 million since it was acquired on 2 May. Sinclair's European sales forces have undergone intensive product training and European launches of Perfectha® and Ellansé™ are all but complete following the termination of existing distribution arrangements. In the UK, Sinclair has already assumed full distribution of Silhouette®. The Group will therefore benefit in future from significant operational leverage.

Sinclair's European operations returned to growth in H2 with LFL sales growth of 0.8% after a 1.6% decline in H1. Sculptra® revenues of £7.2 million included a 26% LFL improvement in H2 to £4.7 million more than 40% ahead of the comparable period before acquisition two years ago. Flamma franchise revenues fell to £7.4 million (-14% LFL) after a poor performance in Spain, necessitating a change of distributor. International Operations grew 29% LFL in H2 recovering from the difficulties in H1 including 34% LFL growth in Asia with particularly strong performances from Atopiclair® and Kelostretch®. Overall Kelo franchise revenues increased 12% LFL to £9.8 million for the full year, slightly below our expectations but more than reversing the 10% LFL decline in H1.

Sinclair ended the year with cash of £17.5 million and net debt of £40.2 million slightly lower than expected due to the strength of Sterling. After the year end Sinclair disposed of Cryogesic® for a cash consideration of £1.15 million continuing its policy of disposing non-core products. Cryogesic® generated sales of £0.6 million in the year to 30 June 2014.

Chris Spooner, CEO of Sinclair IS Pharma commented "Sinclair has broad exposure in medicinal dermatology to aspiring consumers in emerging markets and the recent acquisitions of Perfectha®, Ellanse™ and Silhouette® extend this to fast growing global aesthetics markets. The performance of these brands has exceeded our immediate expectations and significantly enhances Sinclair's strong overall growth prospects."

* Adjusted EBITDA defined as earnings before interest, tax, depreciation, amortisation, share based payments and exceptional items (including acquisition expenses) and loss from discontinued operations.

Ends

For further information please contact:

Sinclair IS Pharma plc Tel: +44 (0) 20 7467 6920

Chris Spooner

Alan Olby

Peel Hunt LLP Tel: +44 (0) 20 7418 8900

James Steel

Clare Terlouw

Notes to Editors:

About Sinclair IS Pharma plc - www.sinclairispharma.com 

Sinclair IS Pharma is an international specialty pharmaceutical company centred on Dermatology, in particular Aesthetics, Wound care, and Skin care. The group has a direct sales and marketing presence in the top five European markets and a rapidly growing International division concentrated on the Emerging Markets through long term multi-product, multi-country, sales, marketing and distribution deals with key strategic partners.

"Safe Harbor" 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.