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CIP Merchant Capital announces investment in Oxford-based Circassia

CIP Merchant Capital announces investment in Oxford-based Circassia

CIP Merchant Capital has announced its investment in Oxford-based Circassia, acquiring 12.8m ordinary shares, representing approx 3.4% of Circassia's issued share capital, for £2.8m.

CIP Merchant Capital has announced its investment in Oxford-based Circassia Pharmaceuticals plc ("Circassia"), a speciality biopharmaceutical company focused on allergy and respiratory diseases quoted on AIM. The Company has acquired, in aggregate, 12,800,000 ordinary shares in Circassia, representing approximately 3.4% of Circassia issued share capital, for a total consideration of approximately £2.8 million.

In the year ended 31 December 2018, Circassia had revenue of £48.3 million, a gross profit of £39.4 million and a net-loss attributable to its shareholders of £25.9 million from underlying operations and a total loss of £117.1 million, which includes losses of £20.7 million from non-underlying operations (non-recurring/irregular expenditure) and loss of £70.5 million from discontinued operations. In the six months ended 30 June 2019, Circassia reported revenue of £27.9 million, a gross profit of £20.3 million and a total loss of £19.0 million, and, as at 30 June 2019, had net assets of £103.2 million.

The Board of CIP believes Circassia has a clear route to profitability, having recently announced that the revenues for the 2019 year are expected to fall in the mid-range of its previously issued guidance of £60-£65 million. In April 2019, Circassia announced the US Food and Drug Administration approval of Duaklir, a drug for maintenance treatment of chronic obstructive pulmonary disease, which was later launched in October 2019. Circassia has also recently made what the Board believes to be positive changes to its leadership team, hiring executives with a proven track record.

Circassia is a world-class speciality pharmaceutical business focused on respiratory disease. The Company sells its market-leading NIOX® asthma management products directly to specialists in the United States, United Kingdom, China, Germany and Italy, and in a wide range of other countries through its network of partners. In the United States, Circassia has the commercial rights to chronic obstructive pulmonary disease (COPD) treatments Tudorza® and Duaklir®. Circassia also has the US and Chinese commercial rights to the late-stage ventilator-compatible nitric oxide product LungFit PH.

Circassia's corporate head office is located in Oxford and the company has commercial operations based in the USA (Morrisville, North Carolina), China (Beijing), Germany (Bad Homburg) and Sweden (Uppsala).