Join our community of smart investors

Sinclair Pharma enjoys uplifting end to 2017

The aesthetic dermatology specialist takes a step closer to profit
January 17, 2018

Shares in Sinclair Pharma (SPH) rose following a trading update released ahead of full-year results, which outlined 20 per cent sales growth over the prior year. Revenue also rose by a quarter in the latter half of the year, leaving the company on track to turn a maiden cash profit. Good sales growth was reported across most of the company's key products, notably a 12 per cent increase in sales of its most popular non-surgical treatment derma filler Silhouette Soft.

IC TIP: Hold at 23p

Increasing investment overseas has also aided this progress, with roughly 1,300 qualified practitioners now performing non-surgical facelifts via Sinclair’s distribution partner ThermiGen in the US. However, re-order rates have, so far, been disappointing. This year revenue was also held back by destocking  in South Korea and the Middle East.

Nevertheless, international expansion is only set to accelerate this year. The sale of alternative derma filler product Ellansé will be “soft launched immediately” in Brazil following recent regulatory approval. Fox News reported that the country accounted for 10.7 per cent of the total global cosmetic procedures performed in 2017, second only to the US. Undoubtedly, it seems further involvement in these countries is a wise choice going forward. The company will also relaunch both its main products in South Korea, with the hope they will be better received when sold via Sinclair’s own joint-venture companies.