The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price is falling despite positive news in its quarterly report released today.
At the time of writing, the Clinuvel share price is trading at $22.0, down 1.35%.
What's driving the Clinuvel share price today?
In its quarterly report for the period ending 31 December 2020, the biopharmaceutical company highlighted negative market conditions as a result of COVID-19 impacts.
Nonetheless, Clinuvel expanded both its commercial operation in the US and its research and development program despite the challenging conditions. The company said the expansion went ahead without the use of any equity or debt financing.
And, as hospital and medical supplies face new challenges, Clinuvel was also able to strengthen its business and balance sheet. This was underpinned by record positive cash receipts, leading to increased cash reserves.
Also during the quarter, the company progressed a number of key projects, including TGA approval of the drug Scenesse to treat adult patients with erythropoietic protoporphyria.
The commercial distribution Scenesse in the United States and Europe delivered cash receipts of $5,266,000. Net cash flow from operating activities came in at $1,293,000. This takes the rolling annual cash receipts value to $33 million, the highest since the company began commercial operations in 2016.
Cash receipts where increasing expenditures from net operating activies also increased to $4,111,000. However, the company claimed this was in order to fund future growth.
Management commentary
Commenting on the update, Clinuvel chief financial officer Darren Keamy said:
The continued performance of the group stems from our measured strategy, consistent execution, and treatment demand from both the USA and Europe, which have contributed to a new high in annual cash receipts.
Against the ongoing backdrop of economic uncertainty, and in a quarter where cash receipts are historically lower reflecting the seasonal demand, we have now been able to deliver a positive net cash result in the December quarter, the first since 2017.
About the Clinuvel share price
Despite a stream of positive company announcements, the Clinuvel share price has performed poorly over the past month, dropping 6% lower. It comes as Clinuvel remains one of the most shorted shares on the ASX.
