Its note comes after the recent first half trading update, which saw revenues and gross profit advance 116% and 100% respectively - mainly boosted by acquisitions.
"Clinigen is the leading player in its key markets of supply and management of clinical trials, access to medicines for patients with unmet needs and ethical unlicensed supply market," said analyst Charles Hall.
Overall these markets are estimated to be worth around US$5.3bn, he noted, which compares to Clinigen’s 2016 forecast sales of approximately $500mln, giving the firm a share of around 10%.
Last spring's purchase of Idis, a specialist in the ethical supply on unlicensed medicines, and Link Healthcare, which has become part of Clinigen’s managed access division, have been 'transformational' for the firm, along with the global alliance with NASDAQ-listed Cumberland Pharmaceuticals, and the benefits will increasingly be apparent in the second half.
For example, Link provides access to markets in Africa, Asia and Australasia, the broker noted.
Hall says he expects the firm to deliver £24mln of free cash flow in the current year rising to £44mln in 2017, which compares to the broker's year end net debt forecast of £78mln.
"The focus in the short term is to integrate the recent acquisitions and pay down debt, but this gives significant firepower to make further acquisitions out of free cash flow," added the analyst.
Peel Hunt targets 1,000p for the shares - a significant distance from where they are now at around 632p