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Takeover talks ongoing as Quantum Pharma more than doubles pretax profits

North East pharmaceutical company Quantum Pharma has reported a strong half year in business, revealing healthy increases in both sales and profits.

Releasing its unaudited results for the six months ended 31 July 2017, the business more than doubled its pretax profits which rose from £1.6m to £3.3m. Moreover, revenue increase by 13% to £36.2m up from £32.1m.

The main contributions to this transformation were the growth in licensed product sales and the benefits of a reduced cost base following the actions to eliminate the cost of supporting underperforming products during H2 2017, according to the firm.

Chris Rigg, CEO of Quantum, paid tribute to the company’s progress over the past nine months which included an overhaul of the business’ board.

Chris commented: “Our strategic plan has progressed more quickly than we envisaged at the time that the new Board was appointed in October 2016, when the Group faced a number of challenges.

“In approximately nine months we have succeeded in simplifying the Group’s business model, which is now focused on our core Specials and Niche divisions and a reprioritised development pipeline.

“Key steps included the closure of our loss making NuPharm operation, the sale of Biodose Services and a significant strengthening of the Group’s balance sheet.”

Last week Quantum Pharma received an indicative proposal from Clinigen Group plc (‘Clinigen’) regarding a possible offer for the firm.

Mr Rigg revealed that discussions are ongoing although emphasised that no certainty exists that an offer will be made for the business.

Mr Rigg added: “I am very pleased with the strategic progress we have made in the period and the Group has good momentum going into the second half of the year. I am confident in the future prospects of the Group.”

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