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Consort Medical H1 Profit Climbs, Revenues Down; Warns On FY Profit; Stock Dips

Shares of Consort Medical plc (CSRT.L) plunged around 21 percent in the early morning trading in London after the single source drug and delivery device company Tuesday warned on fiscal year profit, despite reporting strong growth in first-half profit.

Regarding the outlook, the company noted that due to the delay with Mylan in their Wixela (generic Advair) programme, the Board expects profit before tax for the current financial year to be adversely impacted by approximately 3 million pounds as compared to their previous forecast.

"Whilst the delay in approval of this programme and near-term anticipated negative impact on our business is disappointing, our view of the peak sales opportunity for the product remains unchanged. ….The Board is confident of Consort's future prospects supported by a robust financial position and a broad development pipeline, " Jonathan Glenn, Chief Executive Officer, said.

In its first half, profit before tax climbed 28 percent to 9.6 million pounds from 7.5 million pounds last year. Basic earnings per share grew 9.9 percent to 15.6 pence.

Adjusted profit before tax was 19 million pounds, compared to 17.9 million pounds last year. Adjusted Basic earnings per share were 31.3 pence, compared to 29.3 pence last year.

Revenue for the period edged down 0.8 percent to 152.5 million pounds.

Further, the company announced that interim dividend was increased by 2.2% to 7.60 pence.

In London, Consort Medical shares declined 21.3 percent to 772 pence.

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