IS Pharma

Global speciality pharmaceutical group IS Pharma grew pre-tax profits 30% to £2.6m in the year to March, on sales increased 17% to £14.2m.

'It has been a very positive year for us', said CEO Tim Wright, 'with record results for the business'. Chester-based IS Pharma also generated £3.1m in cash, up 24% year-on-year, closing the period with robust cash balances of £4.2m (2009: £6m).

Sustainable sales and profits growth, explained Wright, was driven by the development of the AIM-listed concern's existing portfolio, as well as recent acquisitions such as Variquel and Aloxi, two purchases from 2008. Variquel is a powder and solution used in the treatment of varicose veins. 'Having grown sales in Germany and then taken it through registration across Europe and into 13 markets', opined Wright, 'Variquel was part of the work that helped drive year-on-year sales up 80%'.

Meanwhile, sales for the intravenously-applied Aloxi, which is used to prevent the acute nausea and vomiting associated with chemotherapy, grew by 84% year-on-year and in addition to recent acquisitions, sales of core products such as the analgesic spray Cryogesic grew by a very healthy 18%.

Wright's strategic aim is to build IS Pharma into 'a leading European specialised pharmaceutical company' and he points out the company now has a ‘record of delivering on our strategy. We are continuing to grow and be profitable whilst developing'.

Reinvesting earnings rather than paying a dividend at this stage, IS Pharma is forecast to grow pre-tax profits to £2.9m on £14.8m sales this year, producing earnings of 8.2p and placing its shares on a modest p/e multiple of 8.3. With exciting organic and acquisitive growth to come, the shares should have much further to go and are certainly worth buying and stashing away.