Clinigen Share Discussion Threads

[gucci] 27/2/2013 08:04

excellent set of results

[glasshalfull] 27/2/2013 07:37

Agree sumitos...v strong maiden results.

Financial highlights

- Sales growth 86% at £61.0m (H1 11/12: £32.8m)

- Underlying EBITDA up 48% to £10.5m (H1 11/12: £7.1m)

- Underlying profit* before tax 54% higher at £9.7m (H1 11/12: £6.3m)

o Statutory profit before tax of £3.7m (H1 11/12: £4.0m)

- Underlying earnings*per share up 64% to 9.0p (H1 11/12: 5.5p)

o Statutory earnings per share is 3.5 pence (H1 11/12: 5.5p); diluted earnings per share is 2.9 pence (H1 11/12: 3.6p)

- Maiden interim dividend of 0.6p per share

- Cash and cash equivalents of £22.3m at 31 December 2012 (30 June 2012: £5.2m)

---

Particularly like the strong cash generation & it appears that although Foscavir is still generating the lions share of profit & growing strongly, CTS has weighed in heavily & GAP has also brought some drink to the party.

I require to read through in detail but v promising at first look.

Regards,
GHF

[sumitos] 27/2/2013 07:20

The results look pretty good to me. Hope the market thinks so too.

[gbb483] 20/2/2013 07:47

I see ballsoflincoln has found another stock to ramp.

[barlisoflincoln] 19/2/2013 22:15

Suspect deal coming next week, if its a good one £4 here we come

[nurdin] 19/2/2013 15:58

yup..starting to motor..high time too !

[barlisoflincoln] 13/2/2013 14:47

Heading up ahead of results

[barlisoflincoln] 07/2/2013 19:23

Acquisition war chest

The lion's share – 79% – of the £82m of revenue Clinigen notched up last year comprised clinical trials services. Sales of Foscavir contributed £22m while global access programmes did just £1m, although this was before the acquisition of 26 new products.

So if all the divisions are profitable, why list to raise a paltry £6.6m? In a word, acquisitions. "We're pursuing 27 different opportunities, and have had non-binding talks with five parties," says Mr George, and all aim to boost Clinigen's products division.

In addition to the £6.6m raised in the IPO, the company has around £5m of existing cash plus a loan facility with RBS for up to £10m, giving it a deal war chest of over £20m. This must surely also be music to the ears of investment bankers.

Although several companies are competing in the niche product acquisition space, Mr George insists that few can boast Clinigen's global focus; while the company is active in 53 markets, Alliance Pharma and Sinclair IS Pharma tend to focus on the UK and Europe. As for whether prices to buy in such drugs have been pushed up, Clinigen believes it can offer benefits beyond being the biggest bidder, including taking products into new indications.

[topvest] 25/1/2013 10:37

I've added a small holding of these - looks a pretty impressive young pharma. Not cheap to buy the shares, but looks a good growth story that will attract lots of attention. You can easily see this becoming a FTSE 250 company in 3/4 years.

[tech] 23/1/2013 14:52

Hopefully seller cleared

[nurdin] 22/1/2013 13:52

Looks like curse of the IC tip,which I thought was slanted more towards the negative side rather than the positive...

[glasshalfull] 18/1/2013 18:05

EDIT - Hoped for broker note...none forthcoming. I've sold into spike at 214p and will revisit once trading/results or acquisition news delivered. Short term profit and I've been slicing holdings and selling down, so no reflection on the company.

Regards,
GHF

[leoboy] 18/1/2013 17:03

Any kind sole please could you send to my Private Message Folder: Inbox
the Numis weighty' 60-page note initiating the shares with a buy and 240p target
mentioned above ? thanks .

[kambrook] 18/1/2013 09:49

SCSW nap as mentioned earlier with them saying..

'Excitement comes from buying another owned drug to sit alongside Foscavir. It has submitted five offers and with monumental cashflows could buy one perhaps two this year. Buying the right one could have "the same implications as a big strike for a small oil company."'

They also added to their portfolio at 215.

Just picked up some myself at 212.87.

[cestnous] 18/1/2013 09:30

I.C. Today
Clinigen delivers a profitable niche

SHARE TIPS AND UPDATES
Clinigen Group PLC (CLIN)
SPECULATIVE
HIGH RISK
Bull points
Unusual business model
Absence of effective competitors
Takes advantage of outsourcing trends
Big customers set to sign up
Bear points
Customer base is narrow
Premium rating for UK healthcare company
Clinigen (CLIN) is that rare beast - a company whose share price performed well after flotation (for 164p in September). That made it the first successful healthcare flotation in the past five years. Now that the share price has settled, it is time to assess Clinigen's prospects in its niche area of global pharmaceuticals services. They look good. The company has grown quickly since its formation in 2010 and, while sales growth won't maintain the pace set in 2011 and 2012 (see table), lively organic growth should ensure that Clinigen's shares are good value for investors who want to diversify away from tired pharmaceuticals majors.
Clinigen is an unusual company that specialises in supplying the drugs that big pharamceutical companies use in clinical trials. In addition, it takes on medicines that big pharma deems surplus to requirements and gives them a new lease of life.
That makes it highly unusual as its nearest competitors are low-margin, capital-intensive wholesalers. Clinigen has found favour with pharma companies because wholesalers have a patchy record of preventing drugs for clinical trials from creeping onto the 'grey market' of parallel imports, where medicines are bought in cheap markets, repackaged and sold in higher-value countries. In Clinigen's case, excess drugs are destroyed and the company has no financial interest in finding a further buyer as it has already earned a fee from sourcing them.
CLINIGEN
ORD PRICE: 220p MARKET VALUE: £178m
TOUCH: 217-220p 12-MONTH HIGH: 230p LOW:164p
DIVIDEND YIELD: 1% PE RATIO: 13
NET ASSET VALUE: 36p† NET CASH: £11.7m†
Year to 30 Jun Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2010 21.3 1.23 - nil
2011 35.0 6.75 - nil
2012 82.1 15.8 14.5 nil
2013* 97.1 17.0 14.5 1.85
2014* 110.1 19.6 16.7 2.23
% change +13 +15 +15 +21
Normal market size: 3,000
Matched bargain trading
*Numis forecasts (profits and earnings are not comparable with historic figures)
†NAV before placing; cash after placing
Clinigen's rapid growth coincides with the prevailing trend for pharma companies to outsource more functions. Independent forecasters reckon that supplying drugs for trials in Europe and the US alone is worth £600m-£800m a year. And Clinigen estimates that the global market is worth about $2bn (£1.2bn). Regulators also help by prolonging the duration of trials, especially by insisting that new drugs must show tangible benefits over existing therapies. That means more trials using so-called comparator medicines.

The most profitable part of Clinigen is its products business, which generates about 25 per cent of sales but more than 60 per cent of gross profits. The division looks to buy-in profitable drugs that have been deemed surplus to the requirements of big pharma companies. It has achieved notable success with AstraZeneca's HIV product, Foscavir. Clinigen's boffins added an indication to Foscavir for bone-marrow patients; its marketeers did a better job and sales more than quadrupled to £21.7m in response. Overall, Clinigen reckons it can generate a return on acquired medicines within two years.
SHARE TIP SUMMARY:
Clinigen's shares trade on 15 times current year forecasts from broker Numis. That puts them towards the top-end of valuations for healthcare companies in the UK. Investors may also be wary of Clinigen's reliance on just two customers for a large proportion of sales, though Novartis and Celgene are expected to sign up this year. Given that its services business is forecast to grow by 17 per a year over the next three years, they can probably live with those risks; especially as Clinigen has few tough competitors and has shown what it can do on its products side with Foscavir. Buy.

[john09] 15/1/2013 08:12

Thre we go :)

[john09] 14/1/2013 15:28

Might start to move up now, huge volume today, tightly held.

[peladon] 12/1/2013 10:31

As expected one of SCSW's naps for the year. Also added to their model portfolio.

[john09] 12/1/2013 00:27

Monday will be good :)

[john09] 12/1/2013 00:27

Monday will be goid

[sumitos] 05/1/2013 17:15

Think you've probably chosen a great entry point John -welcome aboard!

[john09] 04/1/2013 15:56

It's a tree shake.... And I'm taking the opportunity to get in! Seen it all before ;)

[john09] 04/1/2013 15:56

It's a tree shake.... I'm I'm. Seen it all before ;)

[stegrego] 04/1/2013 15:47

Yesterday had a sudden rise.

Probably same reason for the fall, ie none.