Clinigen Share Discussion Threads

[mfhmfh] 08/6/2016 16:22

hxxp://www.whatinvestment.co.uk/financial-news/funds/2528081/the-uk-smaller-companies-iand39m-buying-for-value-right-now-by-manager-of-864-million.thtml

[lomax99] 13/5/2016 08:23

Stock oversold.

IC comment:

Pharmaceutical group Clinigen

(CLIN) gained support from investors when it first joined Aim in 2012, hailed for its position in a rapidly growing market and its highly experienced management team. Despite these factors remaining significant bull points, in the past few years the share price has failed to keep up the same momentum, and in recent months has seen a notable drop-off. This may in part be due to a slow first half caused by a large order for its key drug, Foscavir, slipping into the second six months, along with two big managed access contracts finishing. Also there appears to be some concern surrounding integration costs associated with two major acquisitions made in 2015. However, we feel these concerns have been overdone and see the recent share price weakness as an excellent opportunity to buy into the company's long-term growth.

Idis and Link Healthcare, the two companies acquired in 2015, have improved Clinigen's business mix by reducing its reliance on erratic revenues from its clinical trials business - 18 per cent of first-half gross profit. Idis operates in two divisions, managed access and global access, which aim to provide physicians with treatments that are not available in their own country. These two divisions together contributed £19.1m of gross profits in the six months to December 2015, up from just £2.9m in the comparable period of the prior year. Link Healthcare was acquired in October and contributed £2.7m of revenue in just two months. Link provides commercial access to specialist medical technology products, specifically in Asia, Africa and Australasia, which expands both Clinigen's product range and its geographical reach.


While integration costs associated with these acquisitions are likely to persist this year, Idis and Link are already boosting group earnings and brokers are forecasting significant upside in revenue and profits. The acquisitions were largely funded by extended banking facilities, which has stretched net debt to £82m. However, Clinigen is highly cash generative and net debt is forecast to fall to £23m by 2017, according to broker Numis.

Specialist pharmaceuticals (SP) remains the largest contributor and accounted for almost a third of first-half gross profit. The group buys poorly managed drugs from big pharmaceutical companies and "revitalises" them, with the aim of doubling turnover by improving access to supply. The misconduct by Canadian company Valeant may have soured some investors' perception of such businesses, but Clinigen has a strong reputation. Foscavir, for the treatment of diseases associated with HIV, is the group's leading product. When it was acquired in 2010 it made £4.3m sales and in the most recent financial results it contributed £23m of revenue. While an order delay hit first-half performance, prospects remain good and Clinigen has developed a new 250ml bag, which it plans to replace the current glass bottle presentation of the drug. The bag is likely to widen Foscavir margins, enhance Clinigen's market share and, hopefully most notably, hold off generic competition.

The company is trying to reduce its reliance on Foscavir by buying and developing new drugs, and added a sixth treatment, oncology support drug Totect, to its stable in March. In the first half, Clinigen's newer share price drugs increased sales by 74 per cent, taking their contribution to more than two-fifths of the division's total.

Clinigen continues to demonstrate an impressive ability to revitalise drugs and is using acquisitions to branch out into new growth areas. Broker Numis believes the company can produce mid-double-digit annual earnings growth out to 2018, or more than 20 per cent a year, with the help of further acquisitions. That potential looks significantly undervalued by the shares' rating of just 15 times 2016 earnings. Buy.

[rjd1233] 21/4/2016 13:16

Chart looking poor, continued selling pressure on the SP!

[aishah] 14/4/2016 23:14

I cleared out shortly after the director sales back in October. Chart doesn't look too healthy either. Not considering a re-purchase at the moment. dyor.

[rjd123] 14/4/2016 16:56

Why the continued sell off since end Feb? Any Ideas?

[apad] 02/3/2016 14:13

I suppose the directors' holdings and the increased divy give some sort of confidence.
But I think it'll be a while before we see 685 (directors' selling price) for a while.
apad

[pastybap] 02/3/2016 12:55

I don't like it when there appears to be so much obfuscation in a company's report. Just today I have seen it here, and also with ETO's trading statement.

[arc en ciel] 02/3/2016 12:09

Have to agree, the accounts are impenetrable. How many versions of EBITDA are there and how to determine what is the "right" one to judge performance?

Generally, it seems the ongoing business has not grown and the new acquisitions have not yet made an uplifting contribution compared with the investment in them either.

So while revenue is apparently up 116% and gross profit up by 100% it's just the contribution from the acquisitions which is making the difference to the top line. Meantime, the administrative costs have leapt 142% (from £8.6m to £20.6m) so overall profit before tax is up at a considerably less percentage at 61%.

As the statement says, 2016 is to be a year of consolidation. The new layers of management and products will presumably eventually translate into the sort of bottom-line growth to which we have become accustomed, but only beginning in 2017.

[3rd eye] 02/3/2016 11:55

Think its SCSW tip sheet this weekend. This one will be featured if its not too late.

[3rd eye] 02/3/2016 11:54

Clinigen Group CLIN Stifel Buy 638.25 635.00 800.00 800.00 Reiterates

SP Target 800p

[3rd eye] 02/3/2016 11:53

Markets falling away for all stocks. Employment figs from US at 1.45pm I think can turn it around again.

[vantare7] 02/3/2016 11:38

Have to say I agree with you apad this should be strong today, but i can see it being down by the close

[3rd eye] 02/3/2016 10:46

Clinigen Group PLC 57.4% Potential Upside Indicated by Peel Hunt
Posted by: Katherine Hargreaves 2nd March 2016

Clinigen Group PLC using EPIC/TICKER code LON:CLIN had its stock rating noted as ‘Reiterates217; with the recommendation being set at ‘BUY’ this morning by analysts at Peel Hunt. Clinigen Group PLC are listed in the Health Care sector within AIM. Peel Hunt have set their target price at 1000 GBX on its stock. This is indicating the analyst believes there is a potential upside of 57.4% from the opening price of 635.5 GBX. Over the last 30 and 90 trading days the company share price has decreased 3.77805799999999 points and decreased 45 points respectively.

Clinigen Group PLC LON:CLIN has a 50 day moving average of 652.97 GBX and a 200 day moving average of 670.64 GBX. The 1 year high for the share price is 773.5 GBX while the 52 week low for the share price is 495 GBX. There are currently 114,740,899 shares in issue with the average daily volume traded being 383,240. Market capitalisation for LON:CLIN is £731,358,378 GBP.

Clinigen Group PLC is a United Kingdom-based global pharmaceutical and services company. The Company consists of four businesses that provide medicines to patients with unmet needs, through clinical trials, licensed and unlicensed supply. It operates through four segments: Clinigen Clinical Trial Services (CTS), Idis Managed Access (MA), Idis Global Access (GA) and Clinigen Specialty Pharmaceuticals (SP).

[apad] 02/3/2016 10:13

Mmmm that's essentially a restatement of the rns, without the "consolidation" comment.
I can't make head nor tail of the figures. Hopefully a better accountant will translate them into english.
Confusion, together with the director's sales, I'm going off this share.
apad

[3rd eye] 02/3/2016 08:21

Clinigen Group CLIN Peel Hunt Buy 633.25 635.00, 1,000.00 Reiterates

SP Target £10

Excellent Bolt On.

[marine boy] 02/3/2016 08:21

Certain this wants to break out now. Solid AIM stock in troubled times. Global footprint expansion. Need to wait for the update to filter through.

[vantare7] 02/3/2016 08:08

Results look good but share price not rising

[marine boy] 02/3/2016 08:04

EPS up 21%

[hutch_pod] 25/1/2016 16:43

Yes.. let's hope wider market sentiment stabilises

[marine boy] 25/1/2016 15:10

Good recovery.

[marine boy] 20/1/2016 12:53

I wonder how much of the recent market selling, not just CLIN, is down to short selling. I imagine quite a lot so there will be large mm markups when positions are closed, say Friday.

[hutch_pod] 20/1/2016 12:41

I guess it could take some time to integrate the two acquisitions - doubling in size? - hence the 2nd half slippage could be warranted.

For sure the directors exercised and sold 1.3m options but i think the other large sales were from the departing cfo or ex director.

[apad] 20/1/2016 11:43

CLIN poor organic growth, underperforming division with management change and the usual excuse of orders biased to next half shows that large, multiple management sales do signify an overpriced share.
Growth by acquisition.
I think I'll be looking to reduce this holding.

apad

[hutch_pod] 20/1/2016 10:19

Yes - agree it looked like a fair first half with a decent outlook. Hopefully the fall is nearing the end for the moment.