Trading Update for the 6 months to 30 June 2017
16% growth in revenues to £20 million
FDA approves Silhouette label change accelerating growth potential
On track for another year of strong growth
London, 11 July 2017 Sinclair Pharma plc (AIM:SPH.L) ("Sinclair" or the "Group"), the international
aesthetics company, announces a trading update for the six months ended 30 June 2017.
Unaudited sales for the six months ended 30 June 2017 were £20.0 million, (£18.2 million at constant
currency) compared with sales of £17.2 million for the same period in 2016, representing headline
growth of 16.3% and in line with market expectations.
Silhouette Soft® sales reached £7.3 million in the period, compared with £6.1 million in H1 2016,
reported growth of 20%. Underlying in-market sales growth of Silhouette Soft® averaged 13% in the
period, below the reported number which was boosted by the consolidation of sales in Brazil. Growth
has been moderated by underperformance in the UK and France linked to local issues which are now
largely resolved. Silhouette Soft® continued to deliver strong growth in multiple markets including
Spain, South Korea and the Middle East, with Brazil particularly strong during Q2. With strong LATAM
seasonality in Q4 and favourable distributor stocking patterns, management anticipate an
acceleration of growth rates in the second half.
Silhouette Instalift™. Following the successful launch by partner ThermiGen in the US in August 2016,
revenue for the 1H 2017 period reached £2.3 million. Doctor training continues its rapid roll-out and
ThermiGen is on track to train over 1,000 physicians in 2017. Purchase trends show both high initial
order values and encouraging reorder rates.
In June the FDA approved a commercially significant change to the Silhouette Instalift™ label, with
physicians no longer required to use a permanent anchoring suture. This allows Sinclair and
ThermiGen to promote, train and market the use of Silhouette Instalift™ via the clinically desirable,
self-anchoring procedure that is universally established for Silhouette Soft® across the rest of the
world.
Ellansé® delivered revenues of £4.2 million, unchanged from the same period last year. The reported
number is affected by the ordering patterns of larger partners in the APAC region. Underlying demand
for Ellansé® is strong with in-market data showing an average growth rate of 47% in the period.
Growth remains broad based across Sinclair’s direct European operations as well as distributor
markets, notably in the Middle East and Asia. Management remain very confident for the outlook for
Ellansé® and anticipate a return to strong reported sales growth in the second half.
Perfectha® reported revenues increased 13.5% to £4.2 million against £3.7 million in H1 2016. Average
in-market growth rates for the period are again ahead of the reported sales growth at 23%, pointing
to strong demand for Perfectha® and providing confidence in the outlook for H2.
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Sculptra® revenues were £2.0 million compared with £3.2 million in the prior year, reflecting destocking by certain wholesalers. The Company expects to see a moderate increase in sales in the
second half relative to the first half.
Net cash at 30 June 2017 was £0.1 million (£16.8 million at 31 December 2016) in line with
management expectations. Net cash at the end of 2017 is expected to be broadly neutral as previously
guided. The cash outflow in the period includes operating cash outflows, settlement of the Alliance
Pharma warranty claim and restructuring costs incurred in 2016 (in aggregate £6 million) , payment of
Silhouette InstaLift™ sales milestone and deferred considerations (£5 million in total) and planned
capital expenditure. The Group has drawn an initial £3 million under the debt facility put in place in
the period, and has access to a further £7 million of undrawn facilities.
Chris Spooner, CEO, commented: ”I am pleased with the performance of the Group in the first half of
2017 which reflects the growth profile we anticipated at the beginning of the year. Order phasing,
seasonality of sales in Brazil and strong anticipated US growth will drive sales in H2 which we expect
to be considerably higher than H1. The FDA approved label change for Silhouette Instalift™ is excellent
news which will make training simpler and cheaper. Our recent acquisition of the Refine system fits
our strategy of expanding the Silhouette brand and I see strong medium term prospects for this unique
product. We remain focused on driving revenue growth whilst maintaining cost control and we
remain confident that the Group will deliver an adjusted EBITDA profit for the full year.”
Sinclair will publish interim results for the 6 month period ended 30 June 2017 on 19 September 2017.
Ends
For further information please contact:
Sinclair Pharma plc
Chris Spooner
Alan Olby
Andy Crane
Tel: +44 (0) 20 7467 6920
Peel Hunt LLP (NOMAD and Joint Broker)
James Steel
Oliver Jackson
Tel: +44 (0) 20 7418 8900
RBC Capital Markets (Joint Broker)
Marcus Jackson
Laura White
Tel: +44 (0) 20 7653 4000
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Media enquiries
FTI Consulting
Ben Atwell
Brett Pollard
Stephanie Cuthbert
Tel: +44 (0) 203 727 1000
Notes to Editors:
About Sinclair Pharma plc – www.sinclairpharma.com
Sinclair Pharma plc is an international company operating in the fast growth, high gross margin, global aesthetics
market. Sinclair has built a strong portfolio of differentiated, complementary aesthetics technologies, which are
experiencing significant growth, targeting unmet clinical needs for effective, high quality, longer duration,
natural looking and minimally-invasive treatments. Sinclair is planning entry to multiple new geographic markets
and line extension launches over the next few years. The Group has an established sales and marketing presence
in the leading EU markets and Brazil, and a network of international distributors including ThermiGen in the US.
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: Some or all of
the statements in this document that relate to future plans, expectations, events, performances and the like are
forward‐looking statements, as defined in the US Private Securities Litigation Reform Act of 1995. Actual results
of events could differ materially from those described in the forward‐looking statements due to a variety
of factors.
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