|Melbourne, Australia, 23 February 2022||ASX:
ADR Level 1:
CLINUVEL PHARMACEUTICALS LTD today announced a record December half year operating profit with the release of its Half Yearly Report for the six months ending 31 December 2021.
|Key Highlights, Half Year Ended 31 December 2021|
|Consolidated Entity||Result||Changes from
same period 2020
|Net Profit before income tax||$8,726,000||+50%|
|Cash and Cash Equivalents||$98,992,000||20%1|
|Net Tangible Asset backing per share||$2.15||+45%|
All figures reported in Australian dollars. Refer to the Appendix 4D Half Year Report released to the Australian Securities Exchange for details.
Record Revenues Drive Profit Outcome
The Company also achieved record revenues for a December half year, and the twelfth consecutive half year profit before tax since commencing commercial operations in June 2016.
“The success of the Company’s deliberate long-term strategy to establish SCENESSE® (afamelanotide 16mg)1 as the global standard of care for erythropoietic protoporphyria (EPP) patients is being reflected in the strength of the Company’s financials and our ability to reinvest for future growth,” CLINUVEL’s Chief Financial Officer, Mr Darren Keamy said.
The before tax profit result achieved in the December 2021 half year was 50% higher than the prior corresponding period. The result reflects the firmer demand experienced for SCENESSE® in Europe and consistent growth in the treatment of patients in the United States. Patient treatment by European Expert Centres expanded and rising patient treatment in the US is being facilitated by a larger network of Specialty Centers than originally anticipated, as well as acceptance by over 100 US insurers to reimburse the drug under Prior Authorization arrangements. This has facilitated greater year-round access to treatment for US patients.
The profit after tax result for the period of $5.870 mllion includes a $2.855 million income tax expense and reflects the utilisation of tax losses already brought to account on the balance sheet as a deferred tax asset. This contrasts to the prior reporting period where an income tax benefit of $0.676 million was recorded to recognise prior period tax losses.
Cash and cash equivalents grew by 20% over the six months to 31 December 2021 due to the positive net cash generated from its commercial operations.
Expenses Rise to Support Growth and Expansion
CLINUVEL has established a long track record of prudent cost control, managing expenses to support the Company’s growth and expansion strategy. In line with our business planning, the latest reporting period saw a significant rise in expenses of 67% compared to the prior corresponding period. The largest increases in expenses were in materials and related expenses to ensure inventory requirements can meet clinical demand, followed by personnel related expenses, to build and retain and a team in support of the Company’s strategy.
“The Company is continuing to manage its strong cash position to allow organic growth and retain a financial buffer to withstand unforeseen events like COVID-19 and adverse changes in global economies,” Mr Keamy said.
“We are on track to build a group relying on financial strength and specific expertise in the family of melanocortin hormones. Afamelanotide is only the first offspring to give CLINUVEL a solid foundation for expanding into a diversified and sustainable specialty pharmaceutical.”
“CLINUVEL’s financial management is just one of the pillars providing shareholders stability long-term,” Mr Keamy concluded.