Clinigen cuts full-year earnings forecasts, shares fall

The firm said it now expected to see earnings before interest, tax, depreciation and amortisation grow by between 5% and 10% in the current year, down on the “double digit” growth it said predicted in July.

Clinigen attributed the adjustment to lower-than-anticipated sales of Erwinase, an in-hospital treatment for acute lymphoblastic leukaemia, in the first half.

By 1315 BST, the Aim-listed stock was trading 9% lower at 638.0p.

The update came as Clinigen posted results for the year to 30 June. Adjusted net revenues rose 7% to £458.6m, while EBITDA was 10% lower at £116.3m.

On a statutory basis, revenues rose 12% at £523.6m and pre-tax profits came in at £51.8m, compared to £23.2m a year previously.

Clinigen attributed the slide in earnings to the impact of Covid-19, which has reduced demand for in-hospital treatments, and a change in gross profit mix.

Shaun Chilton, chief executive, said: “Clinigen is seeing strong momentum in the Services business and progress in the Products business, particularly our partnered products, despite the continued impact of Covid-19.

“We are confident that our work on simplifying the operating structure and our ongoing focus on areas where we are uniquely positioned to deliver value will bring clear benefit to our customers, patients and shareholders.”

Adam Barker, analyst at Shore Capital, said: “Overall, this is clearly a mixed set of results. Clinigen’s business continues to be impacted by Covid-19, albeit there is greater impact on Products, due to the global fall in demand for hospital-based oncology products, and new business wins in Services offsetting some of the impact of the pandemic.

“As such, although we continue to see value within Clinigen’s platform, it is evident that Covid-19 remains a source of significant uncertainty in the short term.”