Clinigen Group PLC (LON:CLIN) said second-half trading so far was in line with expectations as it served up a solid performance in the first six months of the trading year.
Its top line growth had been well flagged in an update last month with revenues ahead 28% at £167.8mln for the period ended December 31.
WATCH: Clinigen Group 'well positioned' to deliver another year of good progress
The figure was flattered by what are called pass-through costs associated with the unlicensed medicines it accesses on behalf of patients in need.
And in fact, the speciality pharma and services group reckons gross profit is a better proxy for the overall health of the business. It was up 10% £63.9mln, while underlying profit (EBITDA) was ahead 13% at £34.4mln. Earnings per share growth tracked EBITDA and was 21.2p.
Commercial medicines strong performer
Clinigen said its commercial medicines portfolio performed strongly. The company also benefited from a two-month contribution from Quantum Pharma, one of two major deals completed last year. The other was International Medical Management Corporation, for which it paid an undisclosed sum.
"The acquisitions of Quantum and IMMC extend our unlicensed medicines capability and accelerates our unlicensed to licensed global strategy. Both acquisitions are performing well with integration going to plan,” said chief executive Shaun Chilton.
Of note was Clinigen’s ability to generate cash from its portfolio of businesses and products, which spans commercial medicines, unlicensed medicines and clinical trial services. Cash flow was £34.3mln at the half year, compared with just under £8mln a year earlier. Net debt £141.8mln after the recent spending spree.
Investors rewarded
Investors were rewarded with a 1.76p a share half-time dividend, up 10% on the year earlier.
While Clinigen said the second-half had started well, and was in line with the board’s expectations, adverse currency movements are likely to “dampen” growth rates.
But CEO Chilton remained upbeat: "We have made strong progress against our strategic priorities. We have and will continue to drive organic growth and search for selective acquisitions to complement our existing offering and capabilities.”