Clinigen Group plc Impact of COVID-19 on Group Trading (2393B)
June 09 2021 - 1:00AM
UK Regulatory
TIDMCLIN
RNS Number : 2393B
Clinigen Group plc
09 June 2021
9 June 2021
Impact of COVID-19 on Group Trading
Clinigen Group plc (AIM: CLIN, 'Clinigen' or 'the Group'), the
global pharmaceutical Products and Services company, today
announces a COVID-19 related update on trading and an adjustment to
the Group's full year 2021 outlook. The negative impact of COVID-19
is primarily due to the global reduction in hospital-based oncology
treatments and delays to clinical trials. In particular, demand for
Proleukin within its current approved indications was significantly
weaker than expected in recent months.
Whilst net revenues (1) are expected to be in-line with prior
guidance and consensus expectations, it is now expected that
adjusted EBITDA (2) will be within the range of GBP114m-GBP117m for
the full year 2021 due to the lower proportion of revenues from the
Products division. The Group believes it is prudent to expect this
reduced level of demand for Proleukin to remain until
revitalisation efforts into new indications alongside novel cell
therapies are successful and normal Hospital and Cancer Centre
Services have resumed .
Cash conversion has been in-line with adjusted expectations,
with net debt (3) expected to be below GBP330m (excluding IFRS16)
with the Group having ample liquidity and leverage meaningfully
below the Group's temporary banking covenant of 3.5x. No further
deferred payments are required for previous acquisitions, CSM or
Proleukin and cash generation is focused on debt paydown.
Outlook
Clinigen is continuing to support COVID-19 projects across the
business, is gaining further share in its Service end-markets, has
made faster-than-expected progress on the launch of Erwinase and
the Group remains confident that Proleukin demand will return and
exceed pre-COVID levels in the future .
Given these positive dynamics and the good underlying strength
of the Group, Clinigen expects to achieve double digit EBITDA
growth in FY22 and is focused on its debt paydown.
Shaun Chilton, Chief Executive Officer of Clinigen Group, said:
"COVID-19 has continued to have a significant impact on our
business as it has for many other companies operating in the
clinical trial and hospital-based products area.
"Due to the strength of our underlying business, the
simplification of our operating model and continued high-level of
business wins in Services, we are optimistic about the future and
anticipate a return to double digit growth in the next financial
year."
(1) Net revenue excludes Managed Access pass through revenue
which varies each period dependent on the mix of programs .
(2) EBITDA includes the Group's share of EBITDA from its joint
venture and is now shown after the adoption of IFRS 16.
(3) Bank covenant leverage is calculated by dividing adjusted
EBITDA of the Group for the past 12 months, excluding the impact of
IFRS 16, by net debt at the period end.
Information within this announcement is deemed by the Group to
constitute inside information under the Market Abuse Regulation
(EU) No. 596/2014
- Ends -
Contact details
Clinigen Group plc Tel: +44 (0) 1283 495010
Shaun Chilton, Chief Executive Officer Investors@Clinigen.com
Nick Keher, Chief Financial Officer
Numis Securities Limited - Nominated Adviser Tel: +44 (0) 20 7260 1000
& Joint Broker
James Black / Garry Levin / Freddie Barnfield Clinigen@Numis.com
RBC Capital Markets - Joint Broker Tel: +44 (0) 20 7653 4000
Marcus Jackson / Elliot Thomas
Consilium Strategic Communications Tel: +44 (0) 20 3709 5700
Mary-Jane Elliott / Matthew Cole / Matthew Neal Clinigen@consilium-comms.com
Notes to Editors
About Clinigen
Clinigen Group plc (AIM: CLIN) is a global, specialist
pharmaceutical services and products platform focused on providing
ethical access to medicines. Its mission is to deliver the right
medicine to the right patient at the right time. The Group operates
from sites in North America, Europe, Africa, and the Asia
Pacific.
Clinigen has more than 1,250 employees across five continents in
16 countries, with supply and distribution hubs and operational
centres of excellence in key long-term growth regions. The Group
works with 34 of the top 50 pharmaceutical companies, interacting
with over 5,000 hospitals across more than 115 countries.
For more information on Clinigen, please visit
http://www.clinigen.com
Cautionary statement
This announcement contains certain projections and other
forward-looking statements with respect to the financial condition,
results of operations, businesses and prospects of Clinigen Group
plc. These statements are based on current expectations and involve
risk and uncertainty because they relate to events and depend upon
circumstances that may or may not occur in the future. There are a
number of factors which could cause actual results or developments
to differ materially from those expressed or implied by these
forward-looking statements. Any of the assumptions underlying these
forward-looking statements could prove inaccurate or incorrect and
therefore any results contemplated in the forward-looking
statements may not actually be achieved. Recipients are cautioned
not to place undue reliance on any forward-looking statements
contained herein. Except as required by law, Clinigen undertakes no
obligation to update or revise (publicly or otherwise) any
forward-looking statement, whether as a result of new information,
future events or other circumstances.
The information contained in this statement has not been audited
and may be subject to further review.
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