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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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Pharma & Biotech

PREVIEW- Clinigen and big diggers due to report

Fresnillo and Anglo American, along with Clinigen are due to report tomorrow

Among the big diggers reporting tomorrow are Anglo American plc (LON:AAL) and silver giant Fresnillo (LON:FRES).

Silver is of course enjoying a rally in prices at the moment, which makes the production stats all the more pertinent.

City broker Numis said: "We expect the company to have produced 11.3Moz of silver including production through the Silverstream contract with Penoles.

"We also expect production of 203koz of gold and at this point do not expect management to move guidance from 49-51Moz of silver and 775-790koz of gold for 2016.

"We would also expect a further update on the progress at the San Julian project where the start-up has been delayed due to issues with the mill. San Julian should ultimately produce 10.3Moz/year of silver and 44koz of gold and commissioning it was the key deliverable for the company in 2016."

Clinigen's activity revealed

Meanwhile, global specialty pharma group Clinigen (LON:CLIN) also posts an update on trading and Numis reckons the content will be revealing and extensive.

"Clinigen has for some time been providing quite detailed trading statements which at the full year stage should report both gross profits, EBITDA and net debt position, as well as some sense of the gross profit performance across the different parts of the business."

The firm has been busy striking deals in recent months and investors will be keen to see how they are progressing.

Full year 2016 numbers will contain a full year of the contribution from the May 2015 IDIS acquisition and a full second half contribution from the September 2015 acquisition of Link, driving around a 70% step-up in underlying earnings (EBITDA), notes analyst Stefan Hamill.

"Organically, we expect to see a stronger exit rate for the year from both the Clinical Trial Services (CTS) and Managed Access (MA) businesses," said Hamill.

That's because both had second half weighted pipelines at the half year, as well as a better contribution from the anti-viral Foscavir, with three of four US shipments for the year expected in H2, while the analyst sees Global Access (on-demand) delivering flat gross profits.

"We look for further progress on revitalizing the product portfolio and confirmation that an August decision on Cardioxane restrictions remains on track.

Interestingly, the firm may note the foreign exchange impacts of the Brexit vote, with SP and Link likely to benefit, while on-demand revenues are largely UK-derived, said the broker.

The shares are up c.14% since the Brexit results, but remain at good value, said Numis.

Trading statements expected -

Revolution Bars Group Plc (LON:RBG), Anglo American PLC (LON: AAL), Severn Trent PLC (LON: SVT); Fresnillo PLC (LON:FRES) and Clinigen Group (LON:CLIN).

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