Clinigen announces two new acquisition targets following 'another year of good progress'

Clinigen plans to raise £80m from investors to fund two new acquisitions following a "strong performance" from one of its previous additions in its last trading year.

As it posted its full-year results on Thursday, Clinigen revealed that it would acquire CSM Parent for an initial payment of £115m, with an additional £68m set aside if the business is capable of reaching various performance milestones, and iQone, a Swiss speciality pharma business, for £6.7m in a mixture of cash and shares.

As for the results, pre-tax profits soared 154% to £35.9m and revenues surged 36% to £381.2m, thanks, in part, to its recent acquisitions of Quantum and IMMC.

Quantum, which Clinigen snapped up for £150m roughly twelve months ago, turned in a "strong performance" and an "excellent" showing from its commercial medicines unit, which helped drive a 14% jump in adjusted gross profits to £140.1m.

EBITDA jumped 17% to £76m, while earnings per share moved ahead to 45.4p.

Clinigen upped its dividend 12% to 5.6p.

On the other hand, both of those acquisitions had added significant debt to the group's balance sheet, with net debt soaring 290% to £136.5m.

Chief executive Shaun Chilton said: "We are now established as a leading international expert and partner in the increasingly complex global supply and distribution of both unlicensed and licensed medicines."

"The group is very well positioned to deliver another year of good progress."

As of 1055 BST, Clinigen shares had tumbled 9.52% to 845.50p.