The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has edged lower today following the release of its Q1 results.
At the time of writing, shares in the global biopharma are treading lower at 1.9% to $21.44. It's no surprise that the S&P/ASX 200 Index (ASX: XJO) is also in negative territory today, falling 1.7% to 5,952 points.
The ASX market sell-off comes as Wall Street experienced its worst day in months, extending its losing streak to four consecutive days.
So, despite the current turmoil in world markets, how did Clinuvel perform for the start of the new financial year?
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Performance review
For the period ending 30 September, Clinuvel continued to progress the commercial distribution of its flagship drug, Scenesse. Despite the difficult operating environment, the company further pushed into the United States and Europe.
Cash receipts for the September quarter totalled $12 million, an increase of 22.8% on the prior corresponding period (pcp). This was underpinned by a surge in treatment demand that normally occurs over the summer period. AThis is because exposure to visible and ultraviolet light poses a greater risk to patients with erythropoietic protoporphyria (EPP).
After expenditure on operating activities, Clinuvel recorded a net cash flow of $7.8 million, reflecting controlled growth during COVID-19. First receipts from the commercial distribution of Scenesse in the US were received. In addition, European orders were placed and will be paid later in the calendar year. The majority of cash outflows was from the completion Clinuvel's new Singaporean research, development & innovation centre.
The company closed the quarter with $72.7 million in cash and equivalents, a 9% increase on the prior period.
Commercial operations
During the pandemic, Clinuvel further expanded its commercial operations in the US and Europe. Research and development activities focused on novel treatments for patients with severe genetic, skin and vascular disorders.
As the majority of expert centres in Europe have prescribed Scenesse, a small number of clinics have either deferred or reduced orders. This was attributed to uncertainty in patient demand around the pandemic.
In the US, company planning has jumped ahead of schedule with 26 speciality centres trained to administer Scenesse. This almost completes the original target to have 30 clinics running by July 2021.
Management commentary
Commenting on the results, Clinuvel CFO Darren Keamy said:
The continued demand for Scenesse from EPP patients in Europe and the USA bolstered the group's cash receipts in the September quarter.
The further rise in our cash reserves after the payment in the quarter of a third annual dividend as the northern hemisphere winter months approach is welcome in the context of the adverse operating environment and the ability it provides to self-finance the growth of commercial operations and the expansion of our research and development activities.
