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Clinigen - Company reassures investors with trading update

August 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CLIN
  • Price:
  • 369p
A reassuring statement from Clinigen, which has said it expects to report sales growth of 7% and EBITDA growth of 17%, implying £126m and £26.2m, respectively. These are ahead of consensus forecasts.     If truth be told, Clinical Trial Supply (CTS) is the division that has induced some nervousness amongst investors. Revenues are volatile and gross margins differ from contract to contract and last year had seen a pile of low margin anti-viral studies, which had inflated the top line and will not to be repeated this year. That said, Clinigen said revenues grew 11% in H2 compared to H1. Speciality Pharmaceuticals grew more than 10%, benefiting from a full years ownership of Cardioxane and a small contribution from newly acqui ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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