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The company is focusing on growing its digital platform
Thursday 06 Dec 2018 Author: Lisa-Marie Janes

Clinigen (CLIN:AIM)

Gain to date: 0.1%

Original entry point: Buy at 865p, 11 October 2018

We are flummoxed by speciality pharma firm Clinigen’s (CLIN:AIM) lack of share price momentum as it pursues an ambitious strategy in a bid to become the Amazon of hard-to-access medicines.

An investor presentation late last month saw the company outline plans to drive growth of its unlicensed medicines via its Cliniport online platform.

Cliniport could become a vital platform for healthcare professionals by helping them discover over 400 speciality medicines, as well as find drugs that are currently at risk of shortage.

The platform can also help find alternative medicines for specific diseases and boost knowledge around unlicensed drugs, which comprised 45% of Clinigen’s profit last year.

Numis analyst Stefan Hamill says growing Cliniport into a scalable e-commerce platform for hard-to-access medicines could drive future traction and earnings upgrades, but concedes there is ‘much to do’.

Clinigen also told attendees of its investor day that it had achieved $1m in cross-selling since buying packaging and distribution services group CSM in October, with a further $1m of sales pending.

Numis forecasts Clinigen will achieve £85.9m pre-tax profit in the year to June 2019, rising to £104.1m in 2020.

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