Strategic Brand Management
A new graphic identity has been designed and chartered to build and manage Sinclair’s brand awareness throughout the world. These common guidelines include 6-language packaging for the dermatology and oral care portfolio enabling one reference to be sent across different countries. These new packagings will reinforce coherence amongst our prescription and pharmacy ranges, without confusing patients, prescribers and distributors, and will ensure a strong visual impact on pharmacies’ shelves, therefore increasing sell-out. Sinclair’s new graphic charter should also decrease the number of SKUs, allowing the manufacturing team to order bigger quantities of components and finished products and thus improve COGs. One example could be the Papulex range for which we used to stock 25 different SKUs and are currently moving to only 8.
Manufacturing and Logistics
The supply chain and logistics team’s role is to enable Sinclair’s products to be validated and commercialised successfully either in-house or in contract manufacturing facilities. Sinclair manufactures around two-thirds of its products through contract manufacturers and a third of its products in-house through its Clery facility in France. In FY 2009 approximately 11 million product units were manufactured. An increasingly automated process is being implemented across the supply chain in order to optimise manufacturing which will ultimately help make Sinclair a leaner business.
Post balance sheet events
Purchase of Flammazine and Flammacerium from Solvay Pharmaceuticals
On 12 October the Company announced that it has agreed to acquire the worldwide commercial rights for Flammazine and Flammacerium from Solvay Pharmaceuticals for a total consideration of e17.5m. The acquisition will be funded via a combination of debt and equity raised from new and existing investors. Subject to shareholder approval the acquisition is expected to complete at the end of November 2009.
Proposed fundraising
To finance the acquisition the Company has announced an equity fundraising of up to £25.0m through a firm placing and open offer (together the “Fundraising”). The Fundraising, which is being done at 32p per share, has been fully underwritten by irrevocable placing letters.
The Company also announced on 29 October that it has entered into a new debt facility of up to £9.0m which it intends to use to finance the proposed acquisition, and provide working capital, and a further £3.0m to be used to replace an existing facility. As a consequence, the Fundraising will be scaled back to £18.0m.
Directors and Advisors
Board and Management changes
In November 2008, Steve Harris stepped down as Non‑Executive Chairman. Grahame Cook, previously the Senior Independent Director, was appointed as Non‑Executive Chairman, and Penny Freer took on the role of Senior Independent Director.
During the year and following the appointment of Christophe Foucher as Chief Operating Officer (COO) and his subsequent success in restructuring the business, I am pleased to announce that he will be joining the Board at the forthcoming AGM. In addition we further bolstered Sinclair’s team with the appointment of Dr Ross Macdonald as Vice President of Business Development for North America & South Pacific.
Finally, following nine years as CEO of Sinclair Pharma, I will be retiring at the next AGM, at which point Chris Spooner will take on the role of CEO. It has been a pleasure working with the talented and dedicated team at Sinclair during a transformational period in the Company’s history and I feel confident that the new management team will take Sinclair forward through the next stage of its growth.
Dr Michael Flynn
Chief Executive Officer
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