'Clinigen CTS' is the global market leader in the supply and management of quality assured comparator medicines and services to clinical trials. It has been another very positive year in the growth story of the CTS business and there are some compelling reasons the Group expects the growth to continue.
There are some strong market dynamics in the sector within which the Clinigen CTS business operates:
- increasing demand from regulatory and reimbursement bodies for pharmaceutical and biotech companies to produce new medicines that are superior than the current standard of care;
- an increase in the number of clinical trials that require a comparator medicine to around 60% of all phase III and 30% of phase IV clinical trials;
- an increase in the outsourcing of this activity by pharmaceutical and biotech companies who value the expertise, cost effectiveness and anonymity a specialist 3rd party partner provides;
- the rise in development of biologics and biosimilars along with an increase in the number of trials run in the ‘pharmerging’ markets.
As the clinical trial process becomes ever more complex and expensive to manage, the regulatory requirements continue to tighten and the use of more specialised medicines as comparators grows, a market estimated to be around $1.5bn, should continue to grow at a good pace.
1 The adjusted results exclude share based payment costs, amortisation and non-underlying costs
2 Year on year comparisons, referred to as ‘pro forma’ are calculated from the aggregated unaudited results taken from i) 12 monthly management information for Clinigen and Idis, and ii) for Link Healthcare, the eight months ended 30 June 2016 and for the eight months ended 30 June 2015