Numis places Consort Medical 'under review'

Consort Medical’s shares were put ‘under review’ by Numis after the company reported its full year results.

The pharmaceutical device frim on Thursday reported full year earnings before interest and tax rose 47.6% to £37m as revenues gained 49.8% to £276.9m, driven by a strong performance at its drug device manufacturing division Bespak and newly acquired pharmaceutical ingredient development group Aesica.

The company also announced it has developed a generic version of the Advair asthma treatment with Mylan as its partner. However, approval by the FDA was pushed back by US authorities until 28 March 2017.

“The key news in the pipeline is the announcement, as was suspected, that DEV610 is Mylan's generic version of Advair, the first to file for US approval with a potential launch in April 2017 likely to lead to a significant stock build in Consort's second half in full year 2017,” said Numis.

“The launch of British American Tobacco’s Voke (DEV200) nicotine device, which has now been approved for well over a year, is ‘hoped for’ in the next 12 months. We put our estimates under review pending further analysis of the results.” Numis had its previous rating on the stock at ‘hold’.

The broker said Mylan I the first to file a generic version of Advair in the US, followed closely by Hikma Pharmaceuticals and Vectura due on 10 May 2017.

Numis anticipates a launch will have to be “timely and well supplied, which is likely to lead to a significant build-up of product in Consort's second half of fiscal year 2017 to ensure adequate launch supplies”.