Trading update for the year ending 30 June 2007: Sinclair's first
24 July 2007, Godalming, UK. Sinclair Pharma plc (SPH.L), the specialty pharmaceutical company, today provides a pre-close period update ahead of its preliminary results, which will be announced on 25 September 2007.
Revenues for the year ended 30 June 2007 are expected to be approximately £24.1m, an increase of 108% on the previous year (2006: £11.6m). This increase in revenues has been driven both by acquired and organic growth.
A full year's contribution from Sinclair's French operation, CS Dermatologie, and the acquisition in September 2006 of Ashbourne Pharmaceuticals in the UK, mean that revenue from the Company's own sales and marketing operations is expected to grow 161% from £5.4m in 2006 to £14.1m in 2007.
In addition, Sinclair is expected to achieve organic growth of revenues through marketing partners of 61% to £10.0m (2006: £6.2m). Sinclair's eczema product Atopiclair has contributed strongly to this growth following launch in its EU territories as has the gum disease product Decapinol, as Sinclair delivered stock to OraPharma, Inc. for its US launch.
As the board expected, the second half of the year ended 30 June 2007 generated the first profitable half-year since IPO. This brings the company much closer to profitability, from a half year EBITDA loss figure before exceptionals of £2.4m.
Commenting on today's announcement, Dr Michael Flynn, Chief Executive of Sinclair, said:
"Sinclair has more than doubled its revenues since the last financial year and the second half of the year saw strong progress towards profitability. Our flagship products are at the start of their growth curve, with Atopiclair recently achieving launch across the major mainland EU territories and Decapinol entering the US. We are also focused on preparing Sebclair for market entry in the major territories. Synergies with our own sales and marketing operations are also developing following the recent launch of Atopiclair by our French operation CS Dermatologie and its forthcoming launch in the UK by Ashbourne Pharmaceuticals. We are still very focused on Germany to complete the European jigsaw and fulfil our goal of an integrated European specialty salesforce."
In addition to the trading update, Sinclair advises that the Company was involved in preparing for a major acquisition in July 2007. Sinclair was substantially outbid in this transaction; exceptional costs of approximately £400,000 were incurred which will fall into the financial year July 2007 - June 2008.
For further information please contact:
Sinclair Pharma plc Dr Michael Flynn, CEO Jerry Randall, CFO Tel: +44 (0) 1483 410 600 Zoe McDougall, Director of Communications email@example.com
Capital MS&L Mary Clark Halina Kukula Tel +44 (0)20 7307 5340
Notes to editors:
Sinclair Pharma plc Sinclair Pharma plc is an international specialty pharmaceutical company. It has a growing sales and marketing operation that is already present in France, Italy, UK, Spain and Portugal, and a complementary marketing partner network that spans more than 65 countries.
Sinclair has proven expertise in acquiring or developing commercially attractive and undervalued products, registering these products and bringing them to market within a short time frame. The company focuses on niche therapeutic areas and its current portfolio includes products for dermatological conditions and oral health.
In April 2007, Sinclair completed a dual listing on the Official List of the London Stock Exchange and Euronext Paris.
Atopiclair(TM) Atopiclair(TM) is a non-steroidal cream, registered as a medical device in the US and EU, for the management of symptoms of atopic dermatitis and contact dermatitis. It is sold through Sinclair's sales and marketing team in France and Italy, and is also sold in the US, Germany, Spain, Austria, Portugal, Turkey, Indonesia, Israel and Jordan. It will be launched in the UK soon. For further product information please visit www.atopiclair.com.
Atopic dermatitis (also known as eczema) is one of the most common dermatological complaints and accounts for a large number of physician consultations. It is known to affect approximately 20% of school aged children[i], [ii], [iii]. The prevalence in adults is estimated at 1-3%[iv],[v]. The atopic dermatitis market is estimated at more than $2 billion.
Decapinol® Gingivitis is an inflammation of the gum surrounding the teeth. Periodontitis is a more advanced and severe condition that may result in bone or tooth loss. Both conditions are associated with dental plaque bacteria. The market for anti-gingivitis rinses is estimated at more than $1.5bn, and the anti-gingivitis toothpaste market a further $4bn.
Current treatment of gingivitis may involve the use of an oral rinse, alongside 'scaling and planing' (mechanical cleaning of the teeth by a dental professional).
Decapinol has advantages over existing products, which may cause semi-permanent tooth staining. While other leading products work by killing oral bacteria indiscriminately, Decapinol® specifically targets the 'bad' bacteria associated with gum disease. Decapinol® therefore promotes a healthy balance of oral bacteria.
Decapinol is already cleared for sale in the USA by the FDA, as a medical device, where Sinclair's marketing partner OraPharma, Inc has exclusive rights to the product as a prescription-only mouthwash. It is also approved in the EC and sold in Italy by Dompe.
In March 2006, Decapinol® Oral Rinse was awarded the 2006 Oral and Dental Care Product of the Year by Frost & Sullivan in the US.
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: Some or all of the statements in this document that relate to future plans, expectations, events, performances and the like are forward-looking statements, as defined in the US Private Securities Litigation Reform Act of 1995. Actual results of events could differ materially from those described in the forward- looking statements due to a variety of factors.
[i] Yura A, Shimizu T. . Trends in the prevalence of atopic dermatitis in school children: longitudinal study in Osaka Prefecture, Japan, from 1985 to 1997 Br J Dermatol 2001; 145 (6): 966-73 [ii] Tay YK, Kong KH, Khoo L et al. The prevalence and descriptive epidemiology of atopic dermatitis in Singapore school children. Br J Dermatol 2002; 146 (1): 101-6 [iii] Mortz CG, Lauritsen JM, Bindslev-Jensen C, Prevalence of atopic dermatitis, asthma, allergic rhinitis, and hand and contact dermatitis in adolescents. Br J Dermatol 2001; 144 (3): 523-32 [iv] Schultz-Larsen F, Hanifin JM. Epidemiology of Atopic Dermatitis. Immunol Allergy Clin North Am 2002; 22: 1-24 [v] Ellis CN, Drake LA, Prendergast MM. Cost of Atopic Dermatitis and eczema in the United States. J Am Acad Dermatol 2002; 46 (3): 361-70
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