Sinclair Pharma Text-only version

STEVE HARRIS Non-Executive Chairman

FIRST YEAR OF PROFIT

This has been a transformational year with strong performances across our business, resulting in an increase in revenues of 31% to £30.3m and Sinclair´s first full year of EBITDA profit of £1.3m (before exceptional items) since IPO.

Sinclair has seen excellent sales performance from a widening portfolio of growing products, many still in their commercial infancy. The portfolio now contains eight products that contribute in excess of £1.0m in revenue annually.

Sinclair continues to leverage its own sales and marketing operations to further drive revenue growth. We have recently refocused our business on sales and marketing and continue to grow, achieving revenues of £13.7m. We also experienced strong sales growth through our marketing partners that increased sales in this channel by 46%. This success is underpinned by the achievement of 20 product launches and 17 new distribution agreements which cover a wide geography, expanding the commercial reach of Sinclair and its products.

PRODUCT DEVELOPMENT

Our successful product development and acquisition strategy has provided us with a healthy portfolio of patented products for the international markets. The momentum of our pipeline continues to enhance our business, leading to seven licence approvals in the last year.

PEOPLE

The employees of Sinclair are one of its greatest assets. Led by a strong management team, their commitment and drive has enabled Sinclair to meet the commercial challenges of today´s marketplace.

During the last 12 months there has been some organisational restructuring to ensure Sinclair remains well positioned to continue delivering against its targets, with new senior appointments in France and the UK. In November 2007, we welcomed Jean-Charles Tschudin to the Board as a Non-Executive Director, replacing Andrew Sinclair, who has maintained an advisory role as Honorary Life President. On behalf of the Board and shareholders I would like to thank the management team and employees for their valued contribution.

OUTLOOK

After seven years and achieving the milestone of our first profitable full year, I am stepping down as Non-Executive Chairman of Sinclair. It has been a great privilege to support Sinclair during this time and to have been involved in the Company during its critical development phase. I feel that I have accomplished what I set out to achieve, particularly in helping Sinclair to realise profitability and expand its geographical reach which currently extends to 82 countries and in establishing its own sales and marketing operations – now present in five countries.

I am very proud of what Sinclair and its people have achieved, the growing momentum of the business and its recognition in the specialty pharma sector. I leave Sinclair in very good hands with a strong management team who will undoubtedly guide the Company to a bright and profitable future. With a broad product portfolio that is no longer reliant on two or three products to generate the core of its revenues, Sinclair is focused on increasing sales of all major products underpinned by additional sales and marketing investment. There is also a focus on building sustainable brands and looking at developing key brands in major markets.

Finally, an aggressive geographical expansion strategy aimed at bringing existing products into new geographies and new products into existing and new geographies will further drive revenue growth.

I wish Sinclair and all its employees every success as it looks towards a truly exciting future ahead.