Sinclair Pharma sees profitability ahead

Godalming, UK-based Sinclair Pharma has provided a pre-close period update ahead of its preliminary results, which will be announced on September 25. Revenues for the year ended June 30, 2007, are expected to be around L24.1 million ($49.6 million), an increase of 108% on the previous year, driven both by acquired and organic growth.

A full year's contribution from Sinclair's French operation, CS Dermatologie, and the acquisition in September 2006 of Ashbourne Pharmaceuticals in the UK (Marketletters April 3 and October 6, 2006), mean that revenues from the company's own sales and marketing operations is expected to grow 161% from L5.4 million in 2006 to L14.1 million in this year. In addition, Sinclair is expected to achieve organic revenues growth through marketing partners of 61% to L10.0 million (2006: L6.2 million). Sinclair's eczema product Atopiclair has contributed strongly to this growth following launch in its EU territories as has the gum disease product Decapinol, as Sinclair delivered stock to OraPharma for its US launch.

As the board expected, the second six months of the year generated the first profitable half-year since its initial public offering in 2005. This brings the company much closer to profitability, from a half-year earnings before interest, tax, depreciation and amortization loss figure before exceptionals of L2.4 million, says Sinclair.