Shares in global pharmaceutical and services company Clinigen (CLIN:AIM) traded 1.5% higher to 657p on Thursday as it raised its dividend after reporting strong second half cash flows and continued organic growth with revenues up 4% to £504.3 million.
A better sales mix following prior acquisitions, and good cost control resulted in earnings before interest, taxes, depreciation and amortisation (EBITDA) of £84.3 million, up 55% (34% organic).
The full-year dividend was increased by 14% to 7.61 pence per share with a proposed final dividend of 5.46 pence.
The company's stand-out performer was its Commercial Medicines division which delivered 42% growth in total revenues to £156.7 million (29% organic growth).
Clinigen's Unlicensed Medicines division increased revenues by 2% to £158.9 million but organic EBITDA was 5% lower at £34.4 million, impacted by investment in the business.
The division provides unlicensed medicines to hospital pharmacists and physicians for patients with a high unmet medical need.
The Clinical services division which provide services to clinical trials increased revenues by 15% to £162.2 million and EBITDA was 13% ahead at £22.6 million as a result of the acquisition of CSM.
Organic profitability fell by 12% as a result of delayed and cancelled trials related to the virus which management believes impacted the overall market by between 30%-to-50%.
Clinigen provided medium-term guidance for net organic revenue growth to be in the 5%-to-10% range with the current fiscal year at the bottom end due to continued Covid-19 disruptions.
The first-half is expected to be lower than the prior year with a return to growth expected in the second half.
A return to growth is expected from 2022 driven by prospects for cancer drug Proleukin and market share gains for Erwinase as the company drives awareness and launches in new countries. The drug is approved for patients with Acute Lymphoblastic Leukaemia.
Chief executive Shaun Chilton said, ‘We remain confident in achieving our objectives for FY21 - continuing to focus on both the unlicensed and licensed markets, and to demonstrate the synergistic link between the divisions.
‘For the longer term, we have the pillars of the business in place for accelerated growth from FY22.’
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