Trading update

Trading update and notification of board changes

London, 19 July 2016 Sinclair Pharma plc (SPH.L), (“Sinclair” or the “Company”) the international aesthetics company, today provides a trading update for the six months ended 30 June 2016. Following the Company’s change of year-end to 31 December, this period constitutes the second interim period for the 18 month financial period ending 31 December 2016 the first interim period being July to December 2015.

CURRENT TRADING

In the second interim period, Sinclair increased revenues to £17.2m, compared to £7.7m in the first interim period which was negatively affected by planned destocking. Sell-out and reported sales are broadly matched in the 6 months to 30 June 2016.

Silhouette, Sinclair’s unique bioresorbable cone-on-suture product for skin lifting and repositioning, nearly doubled sales to £6.1m (compared to £3.2m in the first interim period). Sinclair recently announced a transformational US distribution and strategic marketing agreement with Thermigen (100% Almirall S.A. subsidiary, “Thermi”) for Silhouette InstaLift™ giving the Company immediate access through 55 sales reps to the world’s largest aesthetics market. Thermi’s sales force training is already well underway and Thermi reports a significant demand from physicians for Instalift™ product training.

Sinclair also recently completed the repatriation of rights to Silhouette Soft® from the Company’s Brazilian partner, providing Sinclair with a direct presence in this key market via a 16 reps sales force. As planned, on 1 July Sinclair started selling both Silhouette Soft® and Perfectha® through its new Brazilian affiliate. Ellansé® remains on track for a 2019 launch as before.

Ellansé®, the Company’s bioresorbable collagen stimulator, has increased revenues to £4.2m (compared to £1.7m in the first interim period), with very strong growth across multiple territories, and Korea recovering well.

Perfectha®, the Company’s hyaluronic acid filler, has also performed well with sales more than doubling to £3.7m (from £1.3m in the first interim period). This reflects strong growth in Europe, a recovery in Korea and growth in several other markets. The relaunch of Perfectha® in Brazil through Sinclair’s new affiliate is expected to boost sales in the coming period.

Sculptra® sales have also more than doubled to £3.2m (£1.5m in the first interim period). Customer loyalty has resulted in a maintaining of market share despite limited promotional spend

 

BOARD CHANGES

Sinclair is pleased to announce the appointment of Alan Musgrave Olby, age 45, to the Board of Sinclair with immediate effect. The appointment is part of an ongoing restructuring following the completion of the strategic review . Alan has served as Sinclair’s Chief Financial Officer since 2009 and was previously Group Financial Controller of Xenova Group plc and KS Biomedix plc. Prior to his role at KS Biomedix plc, Alan was a Corporate Finance Manager at Deloitte having previously been an Audit Manager at Baker Tilly.

 

The following information is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies:

Current Directorships and Partnerships:

IS Pharmaceuticals Limited

Acorus Therapeutics Limited

IS Pharma Ltd

Sinclair IS Pharma Ireland Limited

Sinclair Pharmaceuticals Limited

Sinclair Pharma Management Limited

Sinclair Pharma Holdings Limited

Sinclair Pharma Man Co Limited

Sinclair Lifesciences India Private Ltd

Sinclair Pharma AB

Obvieline SAS

Sinclair Holding Iberia SL

Silhouette Lift SL

Silhouette Lift Inc

Sinclair Holding BV

Aqtis Holding BV

Aqtis Medical BV

Aqtis IP BV

Sinclair IS Pharma Ireland Ltd

Speciality European Pharmaceutical International AG

Previous Directorships and Partnerships in last five years:

Maelor Laboratories Ltd

Cranage Healthcare Ltd

Sinclair Pharma UK Ltd

Salix Pharma AB

Alan Olby is interested in 173,090 ordinary shares in Sinclair.

Sinclair also announces the departure of Non-executive Director Jean-Charles Tschudin from the Board with immediate effect. Chris Spooner, CEO Sinclair Pharma, commented: “Jean-Charles has made an invaluable contribution to the Company during his tenure as a Non-executive Director. On behalf of the Executive team and the Board, I would like to thank him for his commitment and support, and wish him well for the future.”

OUTLOOK

Sinclair repeats its calendar year 2016 guidance of 40% sales growth, pre Brazil consolidation and US InstaLift™ sales contribution which together are expected to contribute a further c.£1m. There has been no immediate impact on the Company’s day-to-day operations following the UK’s referendum vote to leave the European Union. However, foreign exchange movements are expected to have a positive impact on reported revenues. Approximately 60% of the Group’s current year sales are in Euros and 25% in US Dollars. With the majority of the Group’s overheads also outside the UK, including the investment in the Instalift™ launch in the US, the impact on earnings is expected to be broadly neutral in 2016.

 

Commenting on the outlook, Chris Spooner CEO said:

“We have made good progress in transforming Sinclair into a leading aesthetics specialist. The business is leaner, simplified and debt free. Revenues have more than doubled in the last six months from a lower cost base, delivering good operating leverage. With growth driven by geographical roll-out and line extensions, we are well placed to deliver our promised growth in the short term and remain highly optimistic that the Company can deliver strong growth in the medium term.”

CHANGE OF YEAR END

As previously noted, the Company has changed its financial year-end to 31 December to align the business with industry peers. A second set of interim 2016 numbers covering the period 1 January 2016 to 30 June 2016 will be published in September 2016, with fully audited 18 month final results for the period 1 July 2015 to 31 December 2016 to be published in March 2017.

 

For further information please contact:

Sinclair Pharma plc Tel: +44 (0) 20 7467 6920
Chris Spooner

Alan Olby

Andy Crane

 

Peel Hunt LLP (NOMAD and Broker) Tel: +44 (0) 20 7418 8900
James Steel

Oliver Jackson

Media enquiries

FTI Consulting Tel: +44 (0) 203 727 1000
Ben Atwell

Brett Pollard

 

Download Trading Statement here

Notes to Editors:

About Sinclair Pharma plc
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. For more information, please visit www.sinclairpharma.com