Second Interim Statement (Jan-Jun 2016)

Sinclair Pharma plc (SPH.L), (“Sinclair”, or the “Group”, or the “Company”) the international specialty pharma company, today announces its unaudited results for the six and twelve month periods ended 30 June 2016. Delivering strong growth, completed transformational US distribution deal, on track to meet full year guidance

Highlights

  • Reported revenues show significant growth reflecting strong in market sales and planned de-stocking in prior six month period. Group revenues increased 125% to £17.3 million compared to £7.7 million in the previous six month period
    • On track to meet guidance of 40% sales growth for calendar year 2016, pre Brazil consolidation and US Silhouette Soft® sales
    • Silhouette Soft® sales increased 94% to £6.2 million (£3.2 million for the previous six months)
    • Ellansé® sales increased 147% to £4.2 million (£1.7 million in the previous six months)
    • Perfectha® sales up 184% to £3.7 million (£1.3 million in the previous six months)
    • Sculptra® sales back on track, up 146% to £3.2 million (£1.5 million in the previous six months)
    • Distributor inventory levels remain normalised
  • Transformational US distribution and strategic marketing agreement with ThermiGen LLC for Silhouette InstaLift™
    • Significant demand from US physicians for Silhouette InstaLift™ product training
  • Successfully renegotiated Ellansé® milestone payments, significantly reducing the deferred consideration payable from €36 million to a one-off payment of €15 million resulting in a £8.5 million one-off exceptional gain during the period
    • Successfully launched Ellansé® in Hong Kong, Japan, Malaysia, and Singapore
  • Net cash of £24.4 million at 30 June 2016

 

Post period Highlights

  • Established Brazilian affiliate with repatriated local rights for Silhouette Soft® and Perfectha®
    • Brazil is one of the top five global aesthetic markets
    • New local affiliate is immediately sales and earnings enhancing
    • Provides platform to directly launch Ellansé® following approval expected in 2018
  • Launch of Ellanse® and Silhouette Soft® in Mexico and Columbia
  • Alan Olby, CFO, joined the Board
  • Restructuring post medicinal divestment expected to generate over £2.0 million in annualised cost savings
  • Strong sales continue into Q3 2016. Sales for the current quarter expected to exceed the £7.7 million recorded in the July-Dec 2015 period

Chris Spooner, CEO commented “We have made material  progress in our strategy of building a high growth, global pure-play aesthetics business from our strong foundations. We have delivered significant sales growth in the last six months and are on track to meet our guidance of 40% sales growth for calendar year 2016.

We are highly encouraged by the response to Silhouette InstaLift™ pre-marketing activities in the US, which has resulted in very strong early demand by physicians for product training. In addition, our newly established Brazilian affiliate provides direct access to a leading aesthetic market, and is immediately sales and earnings enhancing.

 

Sinclair has already grown since the divestment of the non-aesthetics business to a scale where it is near to EBITDA breakeven pre US investment. Conversion on incremental sales to EBITDA is very high as the relatively fixed cost base combined with high gross margins drives operational leverage.”

 

Following the change to the Group’s year end date from 30 June to 31 December, as previously announced the Group’s audited results for the 18 month period to 31 December 2016 will be announced by the end of March 2017.

These financial results follow the divestment of the non-aesthetics business which completed in December 2015, and thus reflect the ongoing core aesthetics business with all results from the non-aesthetics disclosed under discontinued operations.

This announcement includes inside information.

Download the full Interim Statement here


About Sinclair Pharma plc www.sinclairpharma.com

Sinclair Pharma plc is an international company operating in the fast growth, high gross margin, global aesthetics market. Sinclair has built a strong portfolio of differentiated, complementary aesthetics technologies, which are experiencing significant growth, targeting unmet clinical needs for effective, high quality, longer duration, natural looking and minimally-invasive treatments. The Company is planning entry to multiple new geographic markets and line extension launches over the next few years. Sinclair has an established sales and marketing presence in the leading EU markets and Brazil, and a network of international distributors including ThermiGen in the US.