Last checked at 7 Sep 2011 07:01
For immediate release | 7 September 2011 |
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 UK marketing rights to six products from Beacon Pharmaceuticals Limited for £2.4m cash consideration. Alliance is funding the acquisition by drawing a loan from the £20m Revolving Credit Facility ("RCF") that was put in place in November 2010 to fund acquisitions. This brings the current utilisation of the RCF to £5m.
For the twelve months ended 30 April 2011 the six acquired products had total sales of approximately £2m and gross margin of £0.9m. The majority of these sales and margin relates to Rizuderm (isotretinoin), which is used in the treatment of severe acne and fits well in Alliance's dermatology business.
The acquisition is expected to be earnings enhancing in the current financial year.
Commenting on the acquisition, John Dawson, Alliance Pharma's Chief Executive, said: "We are delighted to announce this acquisition which is immediately earnings enhancing and is a valuable addition to our dermatology portfolio. We continue to evaluate further acquisition opportunities to complement our organic growth."
For further information:
Alliance Pharma plc | + 44 (0) 1249 466966 |
John Dawson, Chief Executive | |
Richard Wright, Finance Director | |
www.alliancepharma.co.uk | |
Buchanan Communications | + 44 (0) 20 7466 5000 |
Mark Court / Jessica Fontaine | |
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.