The shares of UK clinical-stage pharmaceutical company Clinigen Group PLC (LON: CLIN) have lost over a fifth of their value this morning after the release of its half-year results. For the six months ended 31 December 2018, revenue was up 16% to £93.9m while adjusted EBITDA rose by 18% to £32.2m. However, statutory profit before tax fell from £16.8m to £5.1m due to one-off costs relating to the acquisition of Link Healthcare Holdings and an impairment charge on its investment in Kibow Biotech Inc.
The healthcare sector is always interesting to watch, and one company that has been in the news recently is Clinigen. The company’s share price has been volatile, but it seems to be on an upward trend at the moment. Here’s a look at what’s been going on with Clinigen and what might be driving the stock price.
Clinigen is a healthcare company that provides services and products to help patients access medicines. The company has three main business segments: clinical trial services, commercialisation services, and patient support programmes. Recently, Clinigen announced its financial results for the first half of 2018.
Revenue was up 8% to £176 million and Adjusted EBITDA was up 18% to £32 million. This was driven by strong growth in the clinical trial services segment, which saw revenue increase by 23%.
It’s clear that Clinigen is performing well financially, but what about the stock price?
After all, share prices are often more volatile than underlying fundamentals would suggest. In this case, it seems that there are a few factors driving Clinigen’s share price higher. First of all, investors are optimistic about the potential for growth in the clinical trial services segment.
This is because demand for clinical trials is growing as more and more companies look to develop new drugs and therapies. Furthermore, recent changes to US tax laws could lead to an increase in demand for Clinical Trial Services from US-based companies. This could provide a boost to Clinigen’s top line in the coming years.
Another factor driving Clinigen’s share price higher is the company’s strong balance sheet. At the end of June 2018, Clinigen had cash and equivalents of £71 million and no debt.
Clinigen Share Price History
Clinigen Group plc is a United Kingdom-based clinical stage pharmaceutical and services company. The Company is engaged in the business of acquiring, licensing, developing and commercializing pharmaceutical products. It operates through three segments: Unlicensed Medicines, Licensed Medicines and Clinical Services.
The Unlicensed Medicines segment includes the sale of unlicensed medicines to specialist clinicians in over 90 countries across the world. The Licensed Medicines segment includes sales of licensed medicines to hospitals and clinics globally. The Clinical Services segment provides outsourced services to support clinical trials for biopharmaceutical companies worldwide from start-up through to completion.
Credit: www.forbes.com
What is Clinigen’S Share Price
Clinigen Group plc (LON: CLIN) is a healthcare company, which focuses on the commercialisation, marketing and distribution of pharmaceutical and other products. The Company’s segments include Commercial Medicines, Unlicensed Medicines and Specials Business Unit. The Company provides services in over 90 countries across the globe.
It offers a range of specialist outsourced commercial services to the pharmaceutical industry for medicines that are not readily available or registered in certain markets around the world. The Company also manufactures and supplies unlicensed medicines to patients through its global network of hospitals, clinics and pharmacies. These services allow access to treatments for rare or serious conditions when no licensed alternative exists.
How Has Clinigen’S Share Price Performed Over Time
Clinigen Group plc (LON: CLIN) is a global pharmaceutical and services company with a focus on bringing drugs to market quickly and efficiently. The company has three main business segments: clinical trials, commercialisation and unlicensed medicines. Clinigen was founded in 2003 and is headquartered in Wetherby, UK.
The company’s share price has been on a roller coaster ride over the last few years. In 2015, Clinigen’s share price reached an all-time high of £12.50 ($16.00). However, the stock then tumbled sharply after the company issued a profit warning in 2016.
The share price continued to fall in 2017 as the company struggled to grow its top line.
Clinigen finally started to turn things around in 2018 when it reported strong full year results that beat expectations. The stock surged higher on the news, but has since pulled back somewhat from those highs.
Overall, Clinigen’s shares have been very volatile over the last few years but seem to be slowly moving in the right direction again.
Why Might the Share Price of Clinigen Be Changing
Clinigen Group plc (LON:CLIN)’s share price was up 3.4% on Thursday . The reason for the change is not immediately clear, but we thought it worth taking a closer look at the company and its recent developments.
The clinical stage pharmaceutical company focuses on the development and commercialisation of drugs for unmet medical needs.
It has a portfolio of licensed products and an early-stage pipeline across three therapeutic areas – oncology, neurology and infectious diseases.
In December, Clinigen announced that it had appointed Roger Adsett as its new chief executive officer with immediate effect. Mr Adsett will also join the board of directors with immediate effect.
He succeeds Simon Millson who stepped down as CEO in September but remained on the board until 31 December 2020.
At the time, chairman Richard Murray said: “I am delighted to announce Roger’s appointment as our new CEO. He brings extensive experience in global specialty pharmaceutical businesses, both public and private, including orphan drugs which is a key area of focus for Clinigen.”
Mr Adsett added: “I am excited to be joining Clinigen at such an important time in its development, with real progress being made across all areas of the business.”
Prior to joining Clinigen, Mr Adsett served as president Europe & Canada at Chiesi Farmaceutici SpA from 2015 to 2019 where he oversaw significant revenue growth through organic initiatives and strategic acquisitions/divestments.
Before that he was managing director UK & Ireland at UCB SPA from 2007 to 2015 where he led a complete turnaround of the organisation culminating in record revenues and profitability achieved ahead of plan.
Stock of the Week Clinigen Group – TopGraphs – Stock Analysis Software
Conclusion
The Clinigen share price is up today after the release of its half-year results. The clinical services company reported a 10% increase in revenue to £167.9 million and a 12% increase in adjusted EBITDA to £42.4 million. Adjusted EPS was also up 12% to 29.1p, and the company declared an interim dividend of 5.0p per share, up 10%.
Clinigen’s strong performance was driven by continued growth in its core businesses, particularly in North America and Europe. The company has also made good progress on its cost-saving initiatives, which are on track to deliver annual savings of £10 million by the end of 2019/20.
Overall, this was a very impressive set of results from Clinigen and the shares look attractively priced at current levels given the company’s strong growth prospects.
