Clinigen - More service, less product?

Davy Research
/Read Important Disclosures

The key takeaway from Clinigen’s full year results this morning is the group’s increasing focus on its services and ‘partnered’ products businesses. We think this is the right strategic move and will be welcomed by investors if the company can successfully follow through on execution. On numbers, we are trimming FY 22 EPS by c.3% (temporary Erwinase impact) while leaving FY 23 unchanged. This leaves the stock trading on 12.4x FY 22 P/E and 11.3x FY 23 P/E. Investor call takes place today at 10:30 UK time.