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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