In an update, the speciality pharma company told investors it was acquiring the rights outside the US to Proleukin for an undisclosed sum from Novartis.
The drug is used to treat the metastatic forms of renal cell carcinoma and melanoma and the plan is to work with the healthcare professionals to revitalise the product.
One future deployment could see Proleukin used in combination with other drugs. Trials in this regard are currently being carried out.
Updating on its recent trading, Clinigen told investors revenues for the year ended June 30 grew by 27% on a constant currency basis, while gross profit advanced by 16% on the same measurement. Underlying earnings (EBITDA) are likely to grow at a faster pace than gross profits.
The group said the commercial medicines arm continued to deliver “excellent growth”, which helped offset a weaker showing from the clinical trial services business, which strengthened in the second half.
Two key acquisitions made during the year just gone – Quantum and IMMC - are bedding in well, Clinigen reported.
Chief executive Shaun Chilton said: "With a strong balance sheet and cash generative business model, our strategy remains to drive growth across our portfolio organically, by making acquisitions and through geographic expansion."
City broker repeats 'buy' advice
The shares, up 15% in the last month, succumbed to a bout of light profit-taking as they fell 2% to 974.5p each.
Peel Hunt said it remained a ‘buyer’ of the stock up to 1,350p, meaning the price would have to advance almost 40% to hit that target.
The City broker said Clinigen is on an “undemanding” earnings multiple currently. It added: “We believe the product acquisition news should drive the stock up, despite the relatively robust performance into this update.”