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.
In January 2020, the company reported sales in 2019 were in the middle of its guidance of £60-65mln while cash at the year-end was higher than expected at £27mln.
Sales in the middle of the range represent an annual increase of about 31% and include a modest contribution from Duaklir.
Timing of inventory and rebate payments boosted the cash position, but even without these there was a significant improvement in net cash flow in the second half said the AIM-listed group.
- 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.
- Annual turnover of £75mln would result in the group turning an underlying profit (EBITDA)