COVID-19 and
COVID-19 has continued to impact the Group's business as global healthcare networks remain primarily focused on treating the pandemic and now also the roll out of the vaccines, delaying normal hospital procedures.
Over the period end, the Group successfully implemented its 'Brexit' solution and continues to offer an uninterrupted supply of product and service to patients in both the
First half 2021 trading update
Net revenues of at least
EBITDA of at least
Prior guidance for FY 2021 organic net revenue growth remains unchanged; management continues to expect growth to be at the lower end of the 5-10% medium term range.
Net debt as at
Reorganisation of operating structure
Move from three divisions (Clinical Services; Unlicensed Medicines; Commercial Medicines) to two divisions: 'Products' and 'Services'. This provides multiple benefits: Aligns internal structure with the end-customer (healthcare professional or pharma company/manufacturer).
Improves operational effectiveness across the Group and facilitates the ability to drive more meaningful revenue synergies by 'following the molecule'.
Provides a more simplified business model for external stakeholders.
'The reorganisation from three divisions to two has multiple benefits both internally and externally. It more intuitively aligns the structure of the Group with our end-customers, will improve operational effectiveness and drive greater synergies within and between each division, ultimately benefiting patients. We believe it will also provide investors with a more transparent and simplified business model.
'Despite the uncertainties presented by COVID-19, we remain confident in an acceleration of the business into FY22 not least given the business development wins already captured and our pipeline of new product opportunities, including Erwinase.'
Operations
As stated at the Annual
The Board remains optimistic for the Group's outlook notwithstanding the near-term headwinds and uncertainty caused by the pandemic. The Services division has made significant progress in creating new business opportunities. In the Products division, key asset, Proleukin continues to trend positively in the US and there is yet to be a generic Foscavir launch in either the EU or US territories.
As previously guided, net revenue growth is expected to be more materially second half weighted this year given the impact of COVID-19 and the timing of new programs ramping up alongside Proleukin shipments to key customers.
As expected, Net debt increased from
Reorganisation of operational structure
At the upcoming half year results, the Group will change its reporting structure from three divisions to two: 'Products' and 'Services'. The Board believes that this simpler structure better aligns the Group with its two distinct customer groups, will improve internal operational effectiveness and will be more transparent for investors.
Products will comprise Commercial Medicines and the Global Access business of Unlicensed Medicines, representing
Services will include Clinical Services and the Managed Access business of Unlicensed Medicines, representing the Group's high value, niche services offerings for Pharmaceutical and Biotech companies and will be led by
The Group expects to publish its results for the six months ended
Net constant currency is growth applying prior period's actual exchange rate to this period's result excluding the impact of pass through costs in the Managed Access business.
Constant currency is growth applying prior period's actual exchange rate to this period's result.
Bank covenant leverage is calculated by dividing adjusted EBITDA of the Group for the last 12 months by net debt at the period end. Adjusted EBITDA includes the EBITDA from the businesses and assets acquired during the last 12 months, including on a pro forma basis the year prior to it becoming a member of the Group.
Contact:
Tel: +44 (0) 1283 495010
Email: Investors@clinigengroup.com
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