From the UK's biggest biotech IPO to one of its highest-profile drugs failures, Circassia (CIR) has had a turbulent few years. But chief executive Steve Harris wants to "forget where we came from" in order to focus on the opportunities in the respiratory division, which had taken a back seat in the Circassia story.
Acquisitions made in 2015 added a franchise of approved asthma management products to Circassia's portfolio and demand is growing. Sales were up 14 per cent at constant currency in the period (with the prior period including revenue under previous ownership), led by 35 per cent growth in direct clinical sales. Products in the pipeline present opportunities to tap into both the large asthma management and niche specialist care markets. Authorisation for asthma therapy Seriveo is expected to be filed in the second half of 2017 and management values the addressable market at $1.5bn (£1.2bn).
As for the allergy division, things are largely at a standstill. Finances are being redirected into respiratory and all trials other than the final dust-mite allergy study - due to announce results in 2017 - have been put on hold. Mr Harris has little hope of success, but said "we might be pleasantly surprised in the spring".
Broker Numis expects a 2016 loss per share of 48.9p, compared with a 21p loss in the previous year.
CIRCASSIA (CIR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 94.8p | MARKET VALUE: | £270m | |
| TOUCH: | 94-94.8p | 12-MONTH HIGH / LOW: | 323p | 81p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 110p* | NET CASH: | £138m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 0.6 | -26 | -11 | nil |
| 2016 | 11.1 | -108 | -36 | nil |
| % change | +1750 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £178m, or 63p a share | ||||
