Alliance Pharma Share Chat (APH)

I am invested here, think that it is one of the most undervalued shares i've ever came across. Makes a good profit, decent room for growth in the market cap, Pays a dividend(Although small) and in a sector that shouldn't be too affected despite any market problems. People will still need their pills. Problem with this is it's not a flashy share, doesn't grab peoples attention and won't grow 25% over night which you MIGHT get with the small oil companies. People will come to see this for the quality it possesses. Great little share worth having a toe in.,

Does anyone talk about this share, just bought some and wondered what people's thoughts are at the minute.

The directors of Active Energy (AIM: AEG), Alliance Pharma (AIM: APH), Silence Therapeutics (AIM: SLN) and Medgenics (AIM: MEDG) will be presenting:

Thursday the 23rd June 2011, Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB (Charles Suite)

The presentations will start at 6:00pm and finish at approx 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception. Details on the presenting companies can be found below.

FREE registration - http://www.proactiveinvestors.co.uk/register/event_details/114

This event is suitable for the following: Sophisticated & private investors, private client brokers, fund managers, financial institutions, hedge funds, buy & sell side analysts and journalists.

The event is not suitable for people pursuing commercial opportunities.

If you have any problems registering or queries please email events@proactiveinvestors.com.

Is the present sp (28.75) below expectation? Reading reports suggests a gradual return to the 30-36 levels or is this too optimistic?

Alliance Pharma cuts sales guidance
By Benjamin Chiou

Date: Thursday 26 May 2011

LONDON (ShareCast) - Shares in pharmaceutical company Alliance Pharma fell back on Thursday - despite a positive first four months of the year - after it cut its sales guidance of its enteric-coated prednisolone product.

As previously reported, the group had warned that it is facing generic competition in relation to Deltacortil, mainly due to launch of a second generic competitor at the end of last year.

While Alliance said in March that the impact had not been quite as bad as first thought, chairman Michael Gatenby said that "there has recently been increasing pressure on both price and volumes."

As a result, the group has scaled back its expectations for the ongoing run rate of Deltacortil sales.

However, strong trading in the first four months (with turnover 14% higher than the previous year at £17.1m) should offset the negative effect of competition.

"However, we are now more cautious about the outlook for Deltacortril in 2012 as this competitive market develops," Gatenby said.

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BC

AGM Statement

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, will hold its Annual General Meeting in London later this morning.

Michael Gatenby, the Company's Chairman, will make the following comments:

"I am pleased to report that trading in the first four months of 2011 has been ahead of our expectations with turnover of £17.1 million, 14% higher than the same period last year.

"As previously reported, we are facing some generic competition in relation to Deltacortril / enteric coated prednisolone and have been monitoring the impact on the sales of the product since the launch of a second generic competitor towards the end of 2010. We reported in March 2011 that the impact had not been quite as significant as expected. However, there has recently been increasing pressure on both price and volumes and, as a result, we have reduced our expectations for the ongoing run rate of Deltacortril sales. Given the strong start to the year, this is not expected to significantly affect our overall performance for the current financial year. However, we are now more cautious about the outlook for Deltacortril in 2012 as this competitive market develops.

"We are pleased to report that the dermatology and oncology portfolios continue to grow well.

"We were delighted to announce last week the renewal of the ImmuCyst® distribution agreement and to announce last month the completion of the acquisition of AnbesolTM and Ashton & ParsonsTM. We continue to consider further acquisition opportunities."

Finding new drugs is an expensive, hit-or-miss affair. How much easier to pick up existing ones once in development, which is what a lot of big pharmaceutical firms do. Easier still is to buy drugs that are out of patent and so relatively cheap but still with a useful shelf life, which is what Alliance Pharma does. This year’s performance will be more subdued, partly because of the arrival of additional competition for a steroid it owns, but this has been well signalled to the market. The shares, on about ten times’ earnings, look good value if you can pick them up, reckons the Times.

These brands will sit nicely in APH's growing portfolio. Looking at the potential revenue, the borrowings to fund the purchase do not appear excessive.

Proposed acquisition

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces that its wholly owned subsidiary Alliance Pharmaceuticals Limited has conditionally agreed to buy the UK and Irish rights to the brands AnbesolTM and Ashton & ParsonsTM from a subsidiary of Reckitt Benckiser Group plc ("Reckitt Benckiser") for £2.55m cash consideration. Alliance intends to fund the acquisition by drawing a loan from the £20m Revolving Credit Facility ("RCF") that was put in place in November 2010 to fund acquisitions. The RCF is not currently utilised.

Anbesol is used to treat mouth ulcers, teething pains and denture irritation. Ashton & Parsons is used in infants for the symptomatic relief of pain and stomach upset caused by teething.

As part of the acquisition by Reckitt Benckiser of SSL International plc, Reckitt Benckiser plc has given commitments to the European Commission to divest Anbesol and Ashton & Parsons. The sale of the brands by Reckitt Benckiser to Alliance is conditional on the approval of the European Commission.

For the twelve months ended 31 December 2010 Anbesol and Ashton & Parsons sales were £1.3m and £0.8m respectively. Sales of Ashton & Parsons in the past few months have been somewhat lower than historically as a result of certain production issues which Alliance will be seeking to resolve. The gross margin rates of Anbesol and Ashton & Parsons are in line with other products in Alliance's existing portfolio.

Based on the contribution from Anbesol alone, the proposed acquisition is expected to be earnings enhancing in the current financial year.