Oxford, UK – 16 June 2020: Circassia Group plc (“Circassia” or “the Company”) (LSE: CIR) today announces its preliminary results for the year ended 31 December 2019 and a post-period update.

Financial progress

Key performance indicators


2019 underlying continuing operations 2018 underlying continuing operations 2019 total 2018 total
Revenue 62.4 48.3 62.4 48.3
R&D costs1 (6.4) (8.6) (96.8) (87.2)
G&A costs1 (11.9) (11.1) (13.0) (11.5)
S&M costs1 (55.7) (52.5) (55.7) (55.4)
EBITDA (27.8) (32.8) (119.3) (114.7)
Loss for the year (39.0) (25.9) (48.3) (117.1)
Net cash outflow (13.7) (18.8) (13.7) (18.8)
Cash2 at year end 27.0 40.7 27.0 40.7


  • Continued strong revenue growth with sales increasing 27% to £34.6 million (2018 CER3: £27.3 million)
  • Strong growth in all direct markets

Post-period update

  • COVID-19 impact has been significant, but varied by market
  • Q1 2020 sales excluding China decreased 4% (CER), reflecting 3 weeks of lockdown in most direct markets in March
  • China sales fell 66% in Q1 (CER) following two months of lockdown
  • April and May revenues below 50% of prior year as a result of COVID-19 impact
  • Some early signs of recovery in several markets although revenues remain well below 2019 level

COPD portfolio


  • Net in-market sales totalled £27.0 million vs 2018 collaboration revenues of £21.5 million (CER)
  • H2 2019 revenue growth driven by price increase and rebate reductions
  • Modest fall in prescriptions with decline greater during H2 2019


  • NDA approved H1 2019 with launch Q4 2019
  • Challenging launch in market dominated by ‘big pharma’ competitors

Post-period portfolio update

  • Strategic review determined COPD business unsustainable
  • Transformational agreement with AstraZeneca to return products and set off related debt of $150.9 million
  • Revenue levels largely unaffected by COVID-19

LungFit™ PH* (formerly AirNOvent)

  • US and China commercial rights acquired to late-stage nitric oxide product from BeyondAir (formerly AIT)
  • Notice received alleging termination and breach of agreement refuted in strongest terms

Post-period update

  • BeyondAir anticipates US filing Q2 2020

Legal team continues to defend rights under agreement

Ian Johnson, Circassia’s Executive Chairman, said: “Good progress was made during 2019, increasing sales, controlling underlying costs and reducing net cash outflow.  Notably, NIOX® maintained its impressive growth with sales increasing in all its direct markets and across its partner territories.  Whilst revenues have been impacted during the recent pandemic, the potential for the underlying NIOX® business remains highly encouraging.”

“While NIOX® continued to advance, progress in the Company’s COPD (chronic obstructive pulmonary disease) portfolio was more nuanced.  Tudorza® revenues increased significantly during 2019, reflecting the move to report full in-market sales as well as increased pricing and lower rebates in the second half.  However, prescription numbers declined and Duaklir®’s launch proved challenging in a field dominated by major pharmaceutical groups.  Consequently, the COPD business continued to make major losses, making the significant debt owed to AstraZeneca in relation to these two products unsustainable.  As a result, on 27 May 2020 the Company transferred the products back to AstraZeneca and set off the debt in its entirety.”

“With this transformational transaction now complete, Circassia is well placed to become a self-sustaining, cash generative business once the effects of the COVID-19 pandemic pass over.  During the ongoing pandemic, the Company’s focus is firmly on maintaining its world-leading NIOX® business, serving its customers around the world as they support their patients with respiratory diseases.  As restrictions lift, Circassia intends to return NIOX® to growth as quickly as possible, and with a strong underlying business and robust debt-free balance sheet the Company looks beyond the current period of disruption with great optimism.” 

“To ensure access to liquidity during this period of disruption, the Company recently concluded an equity financing facility with two of its principal shareholders to allow it to access up to £5 million over the period to 30 November 2020 at a price of 24.6p per share.  This provides the Company with access to additional funding should this be required in the coming months.”



Ian Johnson, Executive Chairman                                                                c/o Peel Hunt

Michael Roller, Chief Financial Officer

Peel Hunt (Nominated Adviser and Joint Broker)

James Steel / Oliver Jackson                                                                      Tel: +44 (0) 20 7418 8900


finnCap (Joint Broker)

Geoff Nash / Alice Lane                                                                              Tel: +44 (0) 20 7220 0500

Numis Securities (Joint Broker)

James Black / Duncan Monteith                                                                  Tel: +44 (0) 20 7260 1000

About Circassia

Circassia is a leading medical device business focused on respiratory disease.  The Company sells its market-leading NIOX® asthma management products directly to specialists in the United States, United Kingdom, China, Germany and Italy, and in a wide range of other countries through its network of distribution partners.  Circassia also has the US and Chinese commercial rights to the late-stage ventilator-compatible nitric oxide product LungFit™ PH.  For more information please visit

Forward-looking statements

This press release contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of Circassia.  The use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, “target” or “believe” and similar expressions (or the negatives thereof) are generally intended to identify forward-looking statements.  These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future.  There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.  Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the forward-looking statements may not actually be achieved.  Nothing contained in this press release should be construed as a profit forecast or profit estimate.  Investors or other recipients are cautioned not to place undue reliance on any forward-looking statements contained herein.  Circassia undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances.

1Excludes depreciation and amortisation

2Includes cash, cash equivalents

3Constant exchange rates (CER) for 2019 represent reported numbers re‐stated using 2018 average exchange rates; management believes CER comparisons better represent underlying performance due to currency fluctuations against sterling

*LungFit™ PH is not an approved name and may not be the final commercial name

Preliminary Results

Click here to download full preliminary results as a PDF.