Member Article

Product pipeline delays cool expectations at Durham’s Quantum Pharma

Delays in the product pipeline of Quantum Pharma Plc’s Niche Pharmaceutical division has led the Durham-based firm to expect more moderate double digit revenue and EBITDA growth for FY 2017.

The pharmaceutical manufacturer, developer and supplier to the health and care sectors, reported that that the adjusted EBITDA level for the year ending 31 January 2016 is expected to be around £12.7m, against market consensus of £13.4m.

Similarly, the board expects that five regulated products in the Niche Pharmaceutical division will have been launched by the end of the current financial year to 31 January 2016, rather than the ten products anticipated at the half year results in October 2015. The other five regulated products are now due to be launched during FY 2017.

A board review deemed that delays were due to internal management and process issues, coupled with supply chain management and third party regulatory body approval.

The company believes that progress in obtaining product approvals is around 12 months behind the expected schedule at the time of the Group’s Admission to AIM. The firm is now implementing a programme of actions to address these issues and is confident that the management of the regulatory approval process will be significantly improved as a result.

Andrew Scaife, CEO of Quantum Pharma, said: “The issues that Colonis has experienced in its pipeline have been identified and are being addressed. The fundamentals of the Group are stronger now than they were at the time of the AIM IPO. Although the Niche Pharmaceutical pipeline has moved to the right, we are confident it will come to fruition over the next 24 months.

“In the last year we have restructured the group into three divisions and strengthened it with some key senior appointments and have also successfully integrated two acquisitions which, along with the commercialisation of Biodose Connect® in the first half of 2016, will lay the foundations for future growth.”

The Group will be announcing its Final Results on Tuesday, 10 May 2016.

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