Clinuvel Pharmaceuticals releases quarterly activity report
Clinuvel Pharmaceuticals (ASX: CUV) has released strong results in a quarterly activity report, citing that the COVID-19, has and will continue to impact their operations worldwide. The report discussed Clinuvel’s sound financial position and management of the pandemic, attributing its success to the growing distribution and sale of SCENESSE. SCENESSE is a pain-free skin treatment for adult patients with phototoxic reactions.
Clinuvel is an Australian based company, established in 1987 specializing in skin care medication. They sell their products around the world and have been expanding into the US and European markets, in particular.
The Quarterly activity report released to the ASX today, outlined cash receipts of $10.4 million and Net Cash flows of $7.175 million all relating to the supply of SCENNESE. The increased focus on the new medication led the company to raise capital in Europe, reflecting a seven per cent increase in cash reserves from $14.17 million to $66.747 million from March to June 2020. Despite the impacts of COVID-19, the report states that the demand for the drug remained high and is trending positively upwards. In April SCENNSE also began distribution in the United States.
Clinuvel’s current financial position allows them to continue their development and expansion of future clinical initiatives to treat severe genetic and skin disorders. Clinuvel’s Chief Executive Officer Mr Darren Keemy believes Clinuvel will be “able to respond to changes quickly and nimbly, limiting the need to return to investors to access capital and allowing us to focus on the long-term growth of the Group.”
Looking ahead, the skincare treatment company is in a strong financial position to manage current economic positions. They are in the process of finalizing clinical study protocols to begin testing treatments for vitiligo, a disease that affects between 0.5-2 per cent. They summarize their strategy in 2020 into three areas: Commercial growth and expansion, a pipeline of new products and Inorganic growth. Together they will support Clinuvel’s “evolution into a vertically integrated pharmaceutical company.”
Currently, Clinuvel is trading at $22.29 (as of 31st July, 12pm) 20 per cent below their year to date highs. However, the company has recovered 70 per cent of its value from March lows at $12.80. Clinuvel Pharmaceuticals release of the quarterly activities report has underwhelmed investors sending the stock down 0.22 per cent. The company warned that the pharmaceutical industry is not immune to international conditions. However, “Against the Global economic contraction, CLINUVEL is the best positioned to invest in its planned growth and expansion, and patient demand for treatment,” Mr Keamy said. Audited financial reports will be released on the 31st of August.