It's not unusual to see uninspiring financials from listed biotech companies, and Circassia (CIR) didn't buck the trend. The allergy specialist reported accelerating losses and an £8.2m increase in R&D spending last year. But following a £275m fundraising in June 2015, the cash position has improved, although another £30m was paid out in January 2016 as part of the Prosonix acquisition.
But it is the progression of the product pipeline that chief executive Steve Harris is excited about, as Circassia is expecting its final results from clinical trials of Cat-SPIRE, for the treatment of cat allergies, within the next few months. The product, which is likely to launch next year, is expected to help the group move into profitability by 2019. Overall, Circassia has 12 products in the pipeline, eight of which are expected to be registered by the end of the decade.
The group made two acquisitions during the year, which not only helped it to realise its first turnover, but expanded its product range into asthma products and, crucially, gave it a commercial platform in the US and Germany.
Broker Stifel is anticipating an adjusted pre-tax loss of £80.8m and losses per share of 23.9p in 2016, compared with losses of £62.8m and 20p in 2015.
| CIRCASSIA (CIR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 261p | MARKET VALUE: | £745m | |
| TOUCH: | 263-268p | 12-MONTH HIGH / LOW: | 356p | 241p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 144p* | NET CASH | £166m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011** | nil | -15.1 | -1.7 | nil |
| 2012** | nil | -18.6 | -1.4 | nil |
| 2013** | nil | -23.9 | -1.3 | nil |
| 2014 | nil | -44.0 | -0.2 | nil |
| 2015 | 10.8 | -62.8 | -0.2 | nil |
| % change | - | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £247m, or 87p a share **Pre-IPO figures | ||||
