Clinigen revenue rises as shareholders approve its acquisition

Pharmaceuticals and service company Clinigen Group reported a 10% improvement in net revenue from continuing operations in its half-year results on Wednesday, or 14% on an organic basis, to £238.1m.

The AIM-traded firm said adjusted EBITDA from continuing operations was ahead 6% for the six months ended 31 December, or an organic 8%, to £57.4m.

Its board put that down to “strong growth” in services and partnered products, alongside cost control.

Adjusted earnings per share from continuing operations were down 14% to 22.6p.

Clinigen recorded “very strong” cash conversion, with adjusted operating cash flow from continuing operations rising 25% to £72.5m.

Net debt as at 31 December totalled £274.7m, or £295.6m including IFRS 16 liabilities, representing a net debt leverage of 2.5x, “significantly below” the group's temporary banking covenant of 3.5x.

“We have seen good delivery across all areas of the business during the first half of the year,” said group chief executive officer Shaun Chilton.

“Our EBITDA and net revenue growth despite the ongoing market challenges presented by Covid-19 demonstrates the benefits of our diverse and global lifecycle platform.”

Chilton noted that shareholders had approved the increased all-cash acquisition of Clinigen by Triley Bidco, which the board recommended, adding that management was “excited” about the next chapter of Clinigen's growth as a private company.

“We will continue to focus on those areas of the business where we have sustainable competitive advantage and build out the platform to deliver more value for our pharmaceutical clients and healthcare professional customers globally.”

At 1309 GMT, shares in Clinigen Group were flat at 921.5p.