The CLINUVEL Pharmaceuticals Limited (ASX: CUV) share price has been a strong performer on Friday.
In morning trade the biopharmaceutical company's shares are up 4% to $28.09.
Why is the CLINUVEL share price racing higher?
Investors have been buying the company's shares following the release of its second quarter update.
According to the release, receipts from customers were ~$3.7 million for the quarter ending December 31. This was a 43% increase on the prior corresponding period. This brought its financial year to date receipts from customers to $13.5 million.
CLINUVEL's cash and cash equivalents at the end of the period was $57.4 million. This was a reduction of $0.9 million from the previous quarter.
Management advised that the movement in cash was largely driven by net cash used in operating activities of $0.6 million. Which was due to management preparing to expand into new markets in 2020 and beyond. This follows FDA approval for its SCENESSE product late last year.
In addition to this, as its SCENESSE product is for erythropoietic protoporphyria (EPP), a rare genetic disorder which causes absolute intolerance of skin to sunlight, unit orders are traditionally lower during the northern hemisphere's winter months compared to spring and summer.
CLINUVEL's Chief Financial Officer, Darren Keamy, was pleased with the quarter.
He said: "We are starting to witness an annual trend in our sales receipts through the European winter months, while we expect to receive more orders as spring and summer approaches."
"Following FDA approval, we are fully committed to our growth plans in the US and to progress our product pipeline. This commitment will be balanced with the careful and deliberate cashflow management that CLINUVEL has demonstrated over years of research and development and commercial operations. This will be a primary focus in 2020," Mr Keamy added.
