Sinclair Pharma Regulatory News (SPH)

Trading Update

London, 27 January 2015 Sinclair IS Pharma plc (AIM:SPH.L) ("Sinclair" or the "Group"), the international specialty pharma company, announces a trading update for the six months ended 31 December 2014 ahead of the publication of interim results on 17 February 2015.

The Group continues to perform well and in line with the Board's expectations. Revenues for the six months ended 31 December 2014 were £32.0 million, compared to £24.5 million for the same period last year representing reported growth of 31% and 37% on a constant currency basis. Revenues from the Group's aesthetic portfolio grew strongly to £13.6 million (43% of total revenues) with the recently acquired brands Silhouette, Perfectha and Ellansé all contributing significantly as detailed below.

Silhouette® sales reached £2.7 million in the first half, representing growth of 52% (at constant currency) over the same period in 2013 (pre-acquisition). The Group has successfully repatriated direct rights for Silhouette® in the UK and France during H1 and in Germany from January 2015, and expects to conclude negotiations in Spain this month.

Perfectha® delivered revenues of £3.7 million in the first half, with a strong performance in Europe where the Group has launched Perfectha® through all Sinclair's direct operations. Revenue in these territories grew to £0.8 million from £0.2 million in the same period in 2013 (pre-acquisition). Ellansé™ contributed revenues of £1.8 million in the first half, slightly below Board expectations but affected by distributor stocking patterns particularly in Korea and Russia. Sculptra revenues at £2.3 million were ahead of management expectations.

Q2 trends in the Aesthetics franchise as a whole were particularly encouraging. The growth rate of the Aesthetics franchise has accelerated through the first half following an initial focus on revamping training, education and PR programmes. After a very successful Worldwide Experts Meeting held in Barcelona in October which was attended by almost 1,300 physicians, sales of Silhouette® have accelerated growing by 156% (at constant currency) in the final three months of 2014 over the previous quarter and Silhouette® training courses are currently oversubscribed. In Western Europe, the number of active Perfectha® users has increased by over 120% from around 450 users in June 2014 to over 1,000 by December 2014 and the number of active Ellansé™ users also doubled to 400 over the same period.

During the first half, the 510(k) application for Silhouette® Instalift was filed in the US. The file is being reviewed by the FDA and management expect approval in 2015. Approval had been envisaged for Russia during H1 FY15 but due to political factors this is now viewed as unlikely in the near term.

Country operations performed strongly in H1 reaching revenues of £17.8 million (H1 FY14 £16.7 million). Importantly aesthetic sales contributed revenues of £6.0 million with all brands performing well. The launch of Ellansé™ by Sinclair in France and Spain has been very well received with Ellansé™ sales in Sinclair direct territories increasing to £0.5m from £0.2m in the same period in 2013 (pre-acquisition).

International operations revenues reached £14.2 million (H1 FY14 £7.8 million) with the addition of revenues from the acquired aesthetic brands as well as from continuing growth of Atopiclair®, Papulex® and Kelostretch® in Asia. Partner stocking patterns and visibility on international orders provides confidence of continuing strong growth for the full year in the International business.

EBITDA for the period is expected to be in line with the Board's expectations. Historical seasonality in both Sinclair's sales and marketing spend produces higher sales in the second half. The Board expects this trend to continue, noting the industry tendency for stronger Aesthetics sales in late spring and the Company's improving Aesthetics growth trends. However, continued weakness of the Euro is providing ongoing headwinds.

In line with Board expectations, net debt increased to £44.2 million at 31 December 2014, from £40.2 million at 30 June 2014. Net debt at 31 December 2014 was made up of cash of £13.4 million and borrowings of £57.6 million.

The strategic review announced on 25 November 2014 is ongoing and there is no further update at this stage.

Chris Spooner, CEO, commented "Sinclair has made a rapid entry into Aesthetics based on a highly differentiated portfolio and 'facial rejuvenation' approach. The Company has multiple avenues for continued high growth across several products and territories, while prospects for the US provide an opportunity to take the company to a new level.

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 - see 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.