The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price was trading more than 3% higher in morning trade after the company announced a renewed employment agreement with its CEO.
What did Clinuvel announce?
Clinuvel released a statement to the market this morning announcing that the company had renewed its employment agreement with CEO Dr. Philippe Wolgen for a further three years, ending 1 July 2022. As part of the agreement, Dr. Wolgen will be on a fixed base salary of just under SGD $1.4 million (~AUD $1.5 million) and also entitled to other payments if milestones are achieved.
According to the Board of Directors, Dr. Wolgen has played a key role in restructuring the company after joining Clinuvel in 2005. In particular, the board highlighted Dr. Wolgen's contribution to increasing shareholder value by 722% over the past three years.
Dr. Wolgen was responsible for guiding the company's long-term strategy and obtaining European marketing authorisation for Clinuvel's flagship SCENESSE drug. Dr. Wolgen has also been credited for rebuilding a share registry of sophisticated and institutional investors, attracting more than $95 million in direct funding for the development and launch of SCENESSE.
How has Clinuvel performed in 2019?
Clinuvel is a global biopharmaceuticals company that develops drugs designed for the treatment of severe genetic and developmental skin disorders. The company's flagship SCENESSE drug is designed to prevent phototoxicity in patients with erythropoietic protoporphyria (EPP). SCENESSE is the first melanocortin drug to have completed a clinical trial program and obtain marketing authorisation by the European Commission. The Clinuvel share price has soared in 2019, at one point up more than 122% for the year after hitting an all-time high of $39.85.
Earlier this year Clinuvel reported strong full-year results, posting its third consecutive and record annual net profit before tax for FY19. Clinuvel saw a 21.8% increase in revenue of $31.05 million and a 40% increase in net profit before tax to a record $18.1 million for the year. Other milestones for the company included paying a maiden, unfranked dividend and joining the ASX200 index in 2019. SCENESSE continues to be the company's flagship drug, marking 3 years of continued distribution in Europe and is a key driver of Clinuvel's ability to deliver shareholder value.
Clinuvel continues to generate a solid base of earnings in Europe where the company looks set to invest in further expansion. The outlook for Clinuvel includes further growth in European distribution, obtaining FDA approval for SCENESSE to enter the US market and continued development of the company's product pipeline.
After opening up more than 3% in morning trade, the Clinuvel share price is flat at the time of writing.
