£1.3bn acquisition of pharmaceutical firm approved by shareholders

Burton pharmaceuticals and services group Clinigen has published its half-year results for the six months ended 31 December 2021.

Net revenue increased by 10% to £238.1m in comparison to 2020, with £10.1m of profit made before tax.

In December, Clinigen announced an all-cash £1.2bn offer made by Triley Bidco Limited.

Bidco, a newly-incorporated company indirectly owned by Triton Funds, was formed for the purpose of implementing the acquisition.

Under the terms of the acquisition, Clinigen shareholders would have been entitled to receive 883 pence per share.

In January however, the terms of the increased all-cash offer to £1.3bn resulted in the value of 925 pence for each Clinigen share. Shareholders voted to approve the acquisition of Clinigen by Triley Bidco.

Completion of the acquisition is expected to be in April.

Clinigen says despite Erwinase (a chemotherapy treatment of patients with acute lymphoblastic leukaemia) not being granted a licence in the US, there has been a strong net revenue growth of 61% in the partnered section of its products division. Growth is ahead of expectations for Erwinase and Hunterase in countries outside the US.

There was also a strong performance in Africa, driven by the supply of Covid-19 related products, particularly antigen testing kits.

Shaun Chilton, group chief executive officer of Clinigen, said: “We have seen good delivery across all areas of the business during the first half of the year. Our EBITDA and net revenue growth despite the ongoing market challenges presented by COVID-19 demonstrates the benefits of our diverse and global lifecycle platform.

“Shareholders have voted to approve the increased all-cash acquisition of Clinigen by Triley Bidco Limited, which the Board has recommended, and we are excited about the next chapter of Clinigen’s growth as a private company. We will continue to focus on those areas of the business where we have sustainable competitive advantage and build out the platform to deliver more value for our pharmaceutical clients and healthcare professional customers globally.”