Consort shares plummet on inhaler setback
Shares in Cambridge based Consort Medical plunged 22 per cent to 770p after the UK business revealed a further setback to a partner’s inhaler project in the US.
The company is set to take a £3 million hit to pre-tax profit for the year to April 30 as a result in commercial delays to Mylan NV's Wixela inhaler for lung disease.
The inhaler has been rejected twice by US regulators; it is the generic version of GlaxoSmithKline PLC's Advair inhaler to treat asthma and chronic bronchitis.
Consort Medical chief executive Jonathan Glenn put a brave face on the setback. He said: “Whilst the delay in approval of this programme and near-term anticipated negative impact on our business is disappointing, our view of the peak sales opportunity for the product remains unchanged.”
The news took the gloss of a decent set of first-half results. Profit before tax was 28 per cent ahead on revenue that flatlined year-on-year.
Glenn said: “Consort has delivered profit growth and improved margins in both divisions. Bespak has grown its respiratory business while Aesica margins and profits have improved. We are committed to driving continued growth in the business.
“Our growth strategy focusing on organic opportunities continues to deliver, as evidenced by the recently announced joint commercial agreement with Opiant on the Unidose® Xtra nasal device.
“We remain committed to investing in our research and development capabilities and have a growing and exciting pipeline that we are confident will drive strong long-term growth.
“We also continue to assess acquisition opportunities that deliver additional growth and a broader offering through access to new geographic markets and complementary technologies and capabilities.The board is confident of Consort’s future prospects supported by a robust financial position and a broad development pipeline.”