Profit jumps at pharma group

Shaun Chilton

Burton-Upon-Trent based Clinigen Group plc, the pharmaceuticals and services group, has seen strong growth according to half year results for the six months ended 31 December 2019.

Gross profit jumped 35% (+9% on an organic basis) to £108.1m (2018: £80.0m). Adjusted EBITDA meanwhile grew 42% (+10% on an organic basis) to £62.1m (2018 restated: £43.7m).

The firm noted a key operational highlight in taking its first significant step in the revitalisation of Proleukin through a supply agreement signed with Iovance Biotherapeutics, further strengthening the links between the Clinigen operations.

Clinigen also highlighted that its Unlicensed Medicines division delivered strong growth as well as the Clinical Services division.

Shaun Chilton, Group Chief Executive Officer, said: “Our strategy is to build an integrated, international pharma product and services group with strong operational synergies, working with a growing roster of multinational clients and healthcare professionals around the world. We are delivering on our strategy and have seen a strong financial performance – both at the headline numbers and on an underlying organic basis.

“Key operational highlights include the first supply agreement for Proleukin with Iovance; the performance of Melatonin, our largest Unlicensed-to-Licensed product to add to Glycopyrronium in validating this strategy; and continued strong growth in Global Access.

“With the commercial platform in the EU and US now established, we are actively seeking further product in-licensing and acquisition opportunities to leverage across the business. We are also integrating CSM into our Clinical Services division to drive higher organic growth across the Group through greater cross-selling and seeding relationships into our Unlicensed Medicines business.

“We have continued our good performance into H2 and continue to expect organic gross profit growth at the upper end of our medium-term target range of 5-10%.”