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Pharmaceuticals and services group Clinigen upgraded its outlook on performance after reporting that profit nearly doubled, led by growth in its commercial medicines segment amid a boost from acquisitions.
Future organic gross profit was targeted to grow by at least 5% to 10%, with 2020 set to be at the upper end of this guidance, the company said. Earnings (EBITDA) growth is expected to marginally exceed gross profit growth in 2020 with operational leverage expected to increase further beyond 2020, it added.
For the six months ended 31 December 2019, pre-tax profit increased by 92% to £24.8m as revenue grew 17% to £243.7m on-year.
Its commercial medicines business saw gross profit increased 72% to £56.3m due to a 'good underlying performance from the oncology portfolio in the acquired products and from both the licensed and developed product portfolios,' the company said.
Gross margin was 74.5%, up from 71.3%, with the increase due to 'the change in mix towards the higher margin acquired product portfolio,' it added.
The company increased the interim dividend by 10% to 2.15p.
'Trading to date in the second half of the current financial year has been in line with the board's expectations,' Clinigen said. 'The group remains in a good position to drive further growth across all parts of the business in the year ahead.'
At 10:04am: (LON:CLIN) Clinigen Group PLC share price was -28.25p at 820.75p