Clinigen FY underlying earnings impacted by decrease in products revenue

Pharmaceutical firm Clinigen said on Wednesday that while net revenues were still expected to be in line with both guidance and expectations, full-year adjusted underlying earnings were now projected to be within the range of £114.0m and £117.0m due to a decrease in revenues from its products division.

Clinigen stated that the negative impact of the Covid-19 pandemic was primarily due to a global reduction in hospital-based oncology treatments and delays to clinical trials. In particular, demand for its Proleukin drug was "significantly weaker" than expected in recent months.

The AIM-listed group highlighted that it felt it was prudent to expect this reduced level of demand for Proleukin to remain until revitalisation efforts into new indications alongside novel cell therapies were successful and normal hospital and cancer centre services had resumed.

Chief executive Shaun Chilton 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."

As of 0905 BST, Clinigen shares had slumped 22.18% to 650.60p.