Last checked at 2 Aug 2012 07:00
For immediate release | 2 August 2012 |
ALLIANCE PHARMA PLC
("Alliance" or the "Company")
Acquisition
Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces that its wholly owned subsidiary Alliance Pharmaceuticals Limited has acquired the antimalarial brands PaludrineTM, AvloclorTM and SavarineTM from AstraZeneca UK Limited.
Alliance expects the acquired products to generate incremental contribution before financing costs of approximately £1.1 million per annum. Alliance is paying £4.2 million initial consideration to AstraZeneca UK Limited and may pay a further sum over the next three years, which is not expected to exceed £1.0 million, dependent on sales of the brands.
The initial consideration is being funded from existing cash and bank facilities, including a £2 million drawdown from the Group's £20 million Revolving Credit Facility ("RCF"), and any deferred consideration will be funded from future cash generation. This will bring the utilisation of the RCF to £8.5 million.
The acquired products are sold mainly in the UK and France.
Appointment of Country Managers
Alliance has recently appointed a Country Manager for France, Dr Philippe Pasdelou, who will manage the sales of the anti-malarial brands in France. Philippe has considerable experience in the pharmaceutical industry, including managing several companies in France and in other countries. He also has experience setting up a company with a similar business model to Alliance.
Alliance has also recently appointed Lars Börger as Country Manager for Germany, Switzerland and Austria. Lars has experience across a number of pharmaceutical and medical device companies, in both strategic and operational roles, and was most recently Director Licensing with Grünenthal.
The Country Managers will initially focus on securing acquisition and in-licensing opportunities in line with Alliance's strategy to expand into mainland Europe.
Commenting on the acquisition and the Country Manager appointments, John Dawson, Alliance Pharma's Chief Executive, said: "We are delighted to add these important antimalarial brands to the Alliance portfolio, and at the same time to have appointed such highly experienced executives as Philippe Pasdelou and Lars Börger to spearhead our expansion in mainland Europe."
For further information:
Alliance Pharma plc | + 44 (0) 1249 466966 |
John Dawson, Chief Executive | |
Richard Wright, Finance Director | |
www.alliancepharma.co.uk | |
Buchanan | + 44 (0) 20 7466 5000 |
Mark Court / Fiona Henson / Sophie Cowles | |
Numis Securities Limited | + 44 (0) 20 7260 1000 |
Nominated Adviser: Michael Meade / Oliver Cardigan | |
Corporate Broking: David Poutney |
Notes to editors:
About Alliance
Alliance, founded in 1998, is an AIM listed speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has a strong track record of acquiring the rights to established niche products and owns or licenses the rights to more than 50 pharmaceutical products and continues to explore opportunities to expand the range.
Alliance's products are prescribed in the treatment of a wide range of conditions and include products used in the treatment of dermatological conditions, in oncology, in childbirth, in the prevention of heart disease, in Parkinson's disease, in nutrition and in nasal infections. Alliance's sales are mainly prescription driven. Its products are distributed to hospitals directly and to pharmaceutical wholesalers, which service both hospital and retail pharmacies with their prescription requirements.
Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.