With our ongoing focus on controlling our cost base and with multiple growth drivers in place, including the imminent launch of Duaklir in the US and our new sales teams in China and Italy focused on growing NIOX revenues, we look forward to further boosting our performance over the rest of the year
Steven Harris, CEO
What it does….
It currently markets two products: NIOX, which is used to help manage asthma, and Tudorza, a chronic obstructive pulmonary disease (COPD) treatment.
Duaklir, also used to treat COPD, was launched in the US in October, marking a "major strategic milestone". It is a long-acting therapy that comes in powder form and is administered using an inhaler.
It has several other asthma and COPD treatments in its pipeline, as well as AirNOvent – a portable system that uses electricity to make nitric oxide, which is used to dilate blood vessels in the lungs.
So, how’s Circassia doing?
In short, not bad. Its interim results set the road-map to profitability as it reported strong growth in first-half sales alongside a reduction in costs and cash outflows.
Revenues for the six months ended June 30 were up 40% year-on-year at £27.9mln, with the figure set to more than double to £60-£65mln for the full-year.
Annual turnover of £75mln would result in the group turning an underlying profit (EBITDA).
At the halfway stage, Circassia posted and a loss before tax and depreciation of £12.4mln, though the deficit narrowed from almost £21mln six months earlier.
Cash is key for a business navigating its way to profitability and the firm had £19.8mln as of August 31.
What the CEO says
“With our ongoing focus on controlling our cost base and with multiple growth drivers in place, including the imminent launch of Duaklir in the US and our new sales teams in China and Italy focused on growing NIOX revenues, we look forward to further boosting our performance over the rest of the year,” said Steven Harris.
“By building on our performance in the first two months of the second half, we plan to continue our drive towards profitability and our goal of building a self-sustaining speciality pharmaceutical business.”
The recent launch of Duaklir, which broker Numis in its last note described as a “the key catalyst” for the company. The potential market for the drug is expected to grow to US$1.5bn in the next five years from US$1bn currently.