Clinigen Group plc, the Burton-on-Trent-based pharmaceutical and services company, has witnessed strong revenue and profit growth for the year ended 30 June 2020, according an unaudited trading update.
Revenues are expected to increase by at least 17%, while gross profit is expected to increase by at least 20%.
Shaun Chilton, Group Chief Executive Officer of Clinigen, said: “We have delivered a robust performance, showing strong organic growth despite the difficult trading conditions in the last few months of the financial year and in line with our previous guidance.
“Our international platform and balanced portfolio of complementary services and products have shown real resilience. Cash generation also improved meaningfully in the H2, reverting back to historical levels.
“We continue to see organic growth in line with our medium term guidance at this early stage of the new financial year, despite COVID-19 and expected competitive pressure to Foscavir. As we look beyond FY21, we see growth significantly accelerating as we onboard new asset Erwinase and we continue to gain share in the end-markets we serve.”
During its fourth quarter, the company experienced meaningful disruption to its activities from COVID-19, but notes good progress overall. Clinical Services was impacted by clinical trials being delayed or cancelled, whilst both Commercial Medicines and Unlicensed Medicines saw reduced volume demand as treatments in the hospital setting, particularly for oncology, slowed.
However, the Group pivoted activities to support efforts against the pandemic, resulting in material contract wins, whilst containing costs to lessen the impact from a lower top line performance.
Clinigen estimates that the impact of COVID-19 was at least £8m to EBITDA in FY20, with this primarily related to Proleukin. These headwinds are expected to continue into at least the first quarter of the current financial year, albeit the Group has already seen signs of recovery in territories that have begun to relax restrictions related to the pandemic.