Alliance Pharma Regulatory News (APH)

22 Mar 2007 07:04

Alliance Pharma PLC22 March 2007 For immediate release 22 March 2007 ALLIANCE PHARMA PLC ("Alliance Pharma" or "the Company") Acquires rights to market Forceval in China Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company,is pleased to announce that, in a joint venture with a local distributor, it hasacquired the rights to market the multivitamin Forceval in China, where theproduct is endorsed by public health authorities as a nutritional supplement forpregnant women to promote the birth of healthy babies. The acquisition of the China rights, which is expected to be earnings enhancingin the current year, completes Alliance's global distribution rights to marketForceval; in November 2004 it acquired rights to the product for all territoriesoutside China. Forceval was initially launched in China in 1999 and is sold in family planningclinics and pharmacies. In 2006, the recorded sales of Forceval from the UK toChina were £1.9 million. Alliance has acquired Forceval rights in China through a joint venture, BellonaGroup Ltd, which is 60 per cent owned by Alliance and 40 per cent owned byPacific Glory Development Ltd, a Chinese company that currently distributesForceval in China and will continue to do so. The rights were acquired byBellona for a consideration of £3.25 million, of which Alliance is contributing£1.95 million from a debt facility provided by the Bank of Scotland. Bellonaacquired the rights from the administrator to Unigreg Ltd, which previously heldthe worldwide rights to Forceval. John Dawson, Alliance Pharma's Chief Executive, said: "I am delighted to havebeen able to secure this growth opportunity in a joint venture that bringsconsiderable local knowledge of the Chinese market. This transaction gives us alow-risk bridgehead into China and completes our global distribution rights toForceval." For further information: Alliance Pharma plc + 44 (0) 1249 466966John Dawson, Chief ExecutiveMaddy Scott, Finance Directorwww.alliancepharma.co.uk Buchanan Communications + 44 (0) 20 7466 5000Mark Court / Rebecca Skye Dietrich Notes to editors About Alliance Pharma Alliance Pharma, founded in 1996, is an AIM listed emerging specialitypharmaceutical company based in Chippenham, Wiltshire, UK. The company has astrong track record of acquiring the rights to established niche brands andowns, or shares, the rights to 34 branded pharmaceutical products and continuesto explore opportunities to expand the range. Alliance Pharma's products are prescribed in the treatment of a wide range ofconditions and include brands used in periodontitis (a serious gum disease), theprevention of heart disease, in Parkinson's disease, in nutrition, in nasalinfections, in the treatment of dermatological conditions and in childbirth.Alliance Pharma's sales are mainly prescription driven. Its products aredistributed to hospitals directly and to pharmaceutical wholesalers whichservice both hospital and retail pharmacies with their prescriptionrequirements. Alliance Pharma is also developing novel products for sleep disorders and theinduction of labour. Alliance Pharma joined the AIM market of the London Stock Exchange in December2003 and trades under the symbol APH. This information is provided by RNS The company news service from the London Stock Exchange