Will Clinigen Group PLC Stay Ahead Of GlaxoSmithKline plc, AstraZeneca plc, Dechra Pharmaceuticals plc And BTG plc After Update?

Clinigen Group PLC (LON:CLIN) has outperformed GlaxoSmithKline plc (LON:GSK), AstraZeneca plc (LON:AZN), Dechra Pharmaceuticals plc (LON:DPH) and BTG plc (LON:BTG) in the last six months

Clinigen Group PLC
Clinigen Group PLC

Clinigen Group PLC (LON:CLIN) (LSE:CLIN.L) has released an AGM statement today. It has made progress with its financial performance. Organic growth alongside acquisition-led growth has resulted in a rise in its EPS of 25% on an adjusted basis. This has taken place at a time when Clinigen has transitioned into a major global player in the management and supply of unlicensed and clinical trial medicines.

Looking ahead, Clinigen states that it will continue to seek out acquisition-led growth. It will also focus on revitalising products as part of a wider organic growth strategy. Although a change in CEO brings a degree of heightened risk for any company, Clinigen is in a strong position to continue to perform well in my opinion due to its sound business model and growth potential.

In the last six months, Clinigen has risen by 40%. This is a rapid rate of growth and shows that its strategy is not only improving its financial performance, it is also being backed by investors. Clinigen’s share price performance in the last six months has been superior to healthcare peers GlaxoSmithKline plc (LON:GSK), AstraZeneca plc (LON:AZN), Dechra Pharmaceuticals plc (LON:DPH) and BTG plc (LON:BTG). For example, GlaxoSmithKline is up 5%, AstraZeneca has risen by 9%, Dechra is up 19% and BTG has gained 8% in the last six months.

In my view, Clinigen has the potential to continue to rise over the medium to long term. It has the right strategy in terms of developing a strong organic growth profile, while also focusing on making acquisitions to improve its overall earnings growth profile. Further, Clinigen has the financial capability in my view to make additional acquisitions without significantly increasing its risk profile. Therefore, while the wider market may face a period of uncertainty following the US election, I believe that Clinigen has long term investment appeal.

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