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Clinigen pulls through pandemic disruption

The pharma company has boosted its dividend by 14 per cent
September 17, 2020

The final quarter was not a smooth one for pharmaceutical group Clinigen (CLIN), as coronavirus pushed hospitals to cut back oncology treatments and clinical trials were either delayed or cancelled. But the company managed to boost gross profits by almost a fifth overall to £215m in 2020. 

IC TIP: Buy at 659p

That said, Covid-19 knocked adjusted cash profits by about 5 to 7 per cent, as demand for its cancer treatment Proleukin dropped. And the fallout has not yet abated: management anticipates the disruption will continue into the second quarter of the current period, despite some signs of recovery in markets where coronavirus restrictions are relaxing.

The unlicensed medicines division was particularly affected by lower demand in hospitals, leading to a dip in gross profits of 4 per cent. But the company secured a record 25 contracts in its managed access line, including some high-profile treatments for Covid-19.

Broker Peel Hunt forecasts adjusted pre-tax profits of £108m and EPS of 63.2p in FY2021, compared with £107m and 63.2p in FY2020. 

CLINIGEN (CLIN)   
ORD PRICE:659pMARKET VALUE:£ 876m
TOUCH:658-660p12-MONTH HIGH:988pLOW: 358p
DIVIDEND YIELD:1.2%PE RATIO:64
NET ASSET VALUE:335p*NET DEBT:70%
Year to 30 JunTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201634015.911.94.0
201730214.13.35.0
201838135.922.95.6
201945712.34.06.7
202050422.610.37.6
% change+10+84+158+14
Ex-div:05 Nov   
Payment:02 Dec   
*Includes intangible assets of £788m, or 593p a share