IS Pharma reported full year profits in line with expectations.
Revenues grew 17% to £14.2m in the year to March 2010, although that includes £700,000 of the £1.4m receivable for the sale of plasma expanders Volplex and Isoplex. Underlying revenues grew 19% to £13.4m.
Variquel (Haemopressin), a treatment for uncontrolled bleeding from oesophageal varices, grew sales by 80% and Aloxi, the acute nausea and vomiting caused by cancer treatment, increased revenues by 84%.
Pre-tax profits rose from £2m to £2.59m. IS Pharma reported reduced profits in the first half so there was a sharply improved performance in the second half.
Episil, an oral spray used to treat oral mucositis, and Aquoral, an oral spray used to lubricate the mouths of cancer patients suffering from dry mouth, were acquired near the end of the financial year. The products have not been launched yet but they should make a revenue contribution in the second half.
IS Pharma had net debt of £213,000 at the end of March 2010. There is also £9.58m of contingent consideration. There is £2.78m payable within one year and the rest is payable over a number of years depending on milestones and sales.
FinnCap forecasts profits of £2.7m on revenues of £14.7m in 2010-11. The loss of revenues from Volplex and Isoplex will mask the underlying growth of the continuing activities.
At 69p a share, down 5.5p on the day, IS Pharma is valued at £21.2m. The shares are trading on 10 times prospective earnings for 2010-11.
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