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- Global biopharma company Clinuvel Pharmaceuticals (CUV) has recorded its fourth consecutive annual profit, despite the COVID-19 downturn
- Clinuvel has remained in the black despite the ravages of the global pandemic — albeit with a slimmer bottom line
- Net profit before tax has fallen from around $18.1 million to $13.1 million, even though total revenues increased slightly from $31 million to $32.6 million
- Over the year, Clinuvel’s research, development and manufacturing costs increased 52 per cent to $3.6 million
- The company made a big push into the U.S. market after the approval of its Scenesse drug, while expanding its European marketing footprint
- The company’s management has helped it weather the pandemic, while continuing to grow and remaining profitable in harsh headwinds
- Clinuvel Pharmaceuticals closed Thursday’s session 4.65 per cent lower at $22.15 per share
Global biopharma company Clinuvel Pharmaceuticals (CUV) has recorded its fourth consecutive annual profit, despite the COVID-19 downturn.
Limited impact
While Clinuvel has recorded its fourth consecutive year of profitability, its profit margins have narrowed over FY20.
Net profit after tax has fallen eight per cent to $16.65 million, even though total revenues increased slightly from $31 million to $32.6 million.
Over the year, Clinuvel’s research, development and manufacturing costs increased 52 per cent to $3.6 million
The company’s main focus over the period was pushing its Scenesse drug into the U.S. market. Scenesse is Clinuvel’s flagship treatment for adult erythropoietic protoporphyria (EPP) —a condition which causes painful skin sensitivity upon exposure to the sun.
The company also expanded its European marketing access, where Scenesse has been available since 2016.
The marketing push resulted in expenditures rising 44.4 per cent to $20.8 million. The increased investment in commercial and research and development activities have dented the bottom line, but with a longer-term view of expanding the overall market for Scenesse.
The company also expanded its Vallaurix laboratories in Singapore and made a number of significant hires across its research and marketing divisions which account for the spending hike.
Clinuvel CFO Darren Keamy says the company maintained focus on its long-term goals, even amid the global COVID-19 disruptions.
“While many healthcare facilities came to a standstill and focussed on critically ill COVID-19 patients, we managed to continue the supply of Scenesse to EPP centres both in Europe and the U.S.,” Darren said.
“Today’s results demonstrate not only an ability to maintain discipline in expenditure and cash management, but also a strength in managing our expenditure levels as a means to invest in future growth,” he continued.
“In maintaining sufficient working capital to withstand adverse market conditions, and without further diluting shareholders or assuming debt, we have delivered a return on equity of 23 per cent,” he concluded.
Clinuvel’s sound financial strategy has resulted in a final unfranked dividend payout of 2.5 cents per share — matching the figure from 2019.
Cash in the bank
The company is also in an enhanced cash position compared to last year, with cash and cash equivalents of $66.75 million compared to $54.27 million.
Darren Keamy believes the company’s prudent management will afford a bright future.
“The financial results of 2020 demonstrate ongoing value creation, as we gradually expand the business, as well as Clinuvel’s stability during unsettling global conditions,” he said.
Clinuvel Pharmaceuticals closed Thursday’s session 4.65 per cent lower at $22.15 per share.
