Medical services supplier Clinigen (CLIN) produced a very strong set of maiden full-year results following its market listing late last year. These were all the more impressive because the 29 per cent growth in underlying pre-tax profits was generated almost entirely organically. That suggests that its unusual strategy of supplying products to global clinical trials, and giving a new sales life to moribund medicines acquired from big pharma companies, is starting to reap real rewards.
Clinigen's main niche is the supply of so-called comparator drugs to clinical trials around the world. Sales at the CTS segment jumped by 49 per cent to £87.8m, as Clinigen significantly broadened its customer base from 52 to 72 during the year. However, the standout performance came from the global access business, which specialises in product consultancy. Sales here surged more than sixfold to £10.5m, with gross profits rising from £0.7m to £3.9m. Meanwhile, the addition of a bone marrow indication to Foscavir, in addition to conditions associated with HIV infection, boosted sales of the product by 12 per cent to £24.3m, including 3.9 per cent like-for-like growth between the first and second halves.
Chief executive Peter George said that Clinigen will benefit this year from the contribution of newly acquired toxicity treatment Cardioxane, and antibiotic Vibativ.
Broker Peel Hunt forecasts pre-tax profits of £26.1m and EPS of 23.6p, compared with £20.4m and 20.1p in 2013.
CLINIGEN (CLIN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 435p | MARKET VALUE: | £359m | |
| TOUCH: | 430-440p | 12-MONTH HIGH: | 440p | LOW: 168p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 62p* | NET CASH: | £11.3m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 21 | 1.2 | na | nil |
| 2011 | 35 | 6.8 | na | nil |
| 2012 | 82 | 10.2 | 13.2 | nil |
| 2013 | 123 | 14.5 | 15.1 | 2.6 |
| % change | +50 | +42 | +14 | - |
Ex-div: 9 Oct Payment: 1 Nov *Includes intangible assets of £38.9m, or 47p a share | ||||
