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Clinigen Group: A billion pound AIM company

Gross profit in the half year to December was up by 34%
Picture of drugs
Clinigen saw strong growth across all divisions

There are not many £1bn market cap companies on AIM, but Clinigen PLC (LON:CLIN) is one and Shaun Chilton, chief executive, couldn’t be happier.

Speaking to Proactive Investors after a bumper year for the pharma services and drug group, he said business currently was very good.

Organic growth, a currency boost and full contribution from recent acquisition Link Healthcare helped gross profits rise by 22% in the year to June.

Chilton was especially pleased that all three of its divisions, clinical trial services, unlicensed medicines and commercial medicines, had made good progress.

WATCH: Clinigen's Shaun Chilton 'couldn't be happier' with full year performance

There was an outstanding performance in Africa and Asia Pacific from the unlicensed medicines business, he added, where with recent acquisition Link's infrastructure it started to distribute drugs for epilepsy and breast cancer in partnership with Japanese firm Eisai.

In the commercial division, Foscavir, for HIV sufferers with herpes, and chemotherapy relief Ethyol benefited from the strategic partnership with Cumberland in the US. 

Approval is also expected soon in Europe for a reformulated version of Cardioxane, a chemotherapy toxicity treatment for children based on Dexrazoxane, while Totect, another in the Dexrazoxane portfolio, has now received the green light in the US.

READ: Clinigen Group set for European approval for Cardioxane

Clinigen 'cash as usual'

Debts halved over the year to £35mln with strong cashflow in the second half of the year and Chilton says that the business is still generating £1 of cash for every £1 of underlying profit [EBITDA].

Clinigen estimates it will pay a further £40mln as the final consideration for Link in October and following that will be on the look-out for more acquisitions. 

These may be either through more products, adding to its geographic footprint or else pushing deeper into the unlicensed medicines to licensed arena, he said.

Deals were more likely to be bolt-ons such as Link rather than deals on the scale of its £200mln acquisition of Idis.

£1bn valuation

Even though Clinigen is now worth well over £1bn Chilton in insists the company is still happy to remain on AIM.

It’s [AIM] been very good for us, he said and a move to the main market is not something it’s been discussing.

At 923p, or just shy of its all-time high, Clinigen is worth £1.06bn.

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