Last checked at 6 Jun 2013 07:00
For immediate release | 6 June 2013 |
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 all existing rights to SyntometrineTM from Novartis AG and Novartis Pharma AG (together "Novartis") for a consideration of US$11.5 million.
Alliance already owns the UK rights to Syntometrine, an obstetric drug used in the final stage of labour.
Novartis and its affiliates ("the Novartis Group") have been selling Syntometrine in a number of countries worldwide including Australia, South Africa, Malaysia and New Zealand. In the 12 months to March 2013 the total sales of Syntometrine by the Novartis Group were US$3.2 million and the gross margin generated was US$2.8 million. Alliance expects to have annual distribution and operating costs of approximately £0.5 million associated with these new territories.
The US$11.5 million consideration is being funded from existing cash and bank facilities, including a £3.5 million drawdown from the Group's £30 million acquisition facilities. This leaves £10.0 million of the facilities available to fund further acquisitions.
In addition to the Syntometrine rights, Alliance will be acquiring inventory which is expected to have a value of approximately US$0.3 million.
Commenting on the acquisition, John Dawson, Alliance Pharma's Chief Executive, said: "We are delighted to acquire these significant overseas rights to Syntometrine, a product we already know well through selling it in the UK for many years. Although there will be some costs of operating the new distributorships, the acquisition will be immediately earnings enhancing and it fits well with our strategy of increasing Alliance's international sales."
For further information:
Alliance Pharma plc | + 44 (0) 1249 466966 | |
John Dawson, Chief Executive | ||
Richard Wright, Finance Director | ||
| ||
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 / Freddie Barnfield | ||
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 60 products and continues to explore opportunities to expand the range.
Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.