CLINUVEL share price down 7% after half year profits dive

The CLINUVEL Pharmaceuticals Limited (ASX:CUV) share price is sinking lower on Wednesday after reporting a sharp drop in half year profits…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CLINUVEL Pharmaceuticals Limited (ASX: CUV) share price is sinking lower on Wednesday following the release of its half year results.

The biopharmaceutical company's shares are currently down 7% to $21.58.

How did CLINUVEL perform in the first half?

For the six months ended December 31, CLINUVEL delivered an 11% increase in total revenue to $9.97 million. A key driver of this growth was the sales of its SCENESSE product in the European market.

SCENESSE is used for the prevention of phototoxicity in adult patients with erythropoietic protoporphyria. Late last year the product finally received approval by the U.S. FDA.

In light of this approval, the company has invested heavily in key areas of the business to support its growing activities. This led to a sizeable 54% increase in expenses compared to the prior corresponding period. Which ultimately led to CLINUVEL reporting a 74% decline in net profit after tax to $1.06 million. 

At the end of the period the company had cash of $57.4 million and no debt on its balance sheet.

Manangement commentary.

CLINUVEL's chief financial officer, Darren Keamy, was pleased with the company's performance in the first half.

He said: "The eighth consecutive half year profit is a timed and well-managed outcome as it has been sustained in a period where the Group further re-invested in the business which, as expected, had an effect on the net profit result. We had long planned to establish cash reserves to accommodate for any economic downturns, allowing CLINUVEL to execute its plans without significant concerns about building a promising business."

"As part of our long-term plans, growth in the existing revenue base from distribution of SCENESSE in the Eurozone has enabled the Group to self-finance its growth which include expansion into the US. In balancing the entry into new territories, diffusion in new medical indications and control over our costs, we continue to progress the strategic initiatives set by the Board for long term performance of the Group," he added.

No guidance was provided for the second half.

No tickers found. You need to add tickers and save as draft before fetching disclosure

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »