Last checked at 3 Feb 2022 07:09
For immediate release |
| 3 February 2022 |
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Update on CMA investigation
Alliance Pharma plc (AIM: APH), the international healthcare group, today provides an update on the Competition and Markets Authority ("CMA") investigation first announced on 23 May 2019 in which four companies, including Alliance, have been subject to a lengthy investigation. Following the investigation, the CMA has announced its finding that all four companies, including Alliance, have infringed competition law.
Alliance fundamentally disagrees with the CMA's finding and confirms that it did not participate in, or profit from, any market sharing arrangement and refutes any involvement in the alleged competition law infringement. Alliance will be appealing the CMA's decision, and the proposed fine of £7.9m, at the Competition Appeal Tribunal.
Alliance takes compliance with competition law very seriously and has fully assisted the CMA in its investigation. Alliance has robust procedures in place and a Group-wide commitment to upholding the highest standards of conduct.
Further announcements will be made as appropriate.
Background
On 23 May 2019 Alliance announced that the CMA had issued a Statement of Objections to four companies, including Alliance, alleging anti-competitive agreements in relation to the sale of prescription prochlorperazine, a small, out-licensed product in Alliance's pharmaceutical portfolio. The CMA alleges that the infringement period began over 8 years ago - from June 2013 and lasted until July 2018.
Alliance out-licensed prochlorperazine to a distributor in 2013 in return for an agreed fixed transfer price. Since that time Alliance has had no involvement or control over, and did not benefit from, the in-market pricing of the product, which is entirely managed by the distributor. Alliance recorded peak revenues of prochlorperazine in 2015 of £1.9m and revenues in 2021 were £0.7m representing circa 0.4% of the Group's turnover for 2021. The CMA's decision does not concern any other product in Alliance's portfolio.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.
For further information:
Alliance Pharma plc | + 44 (0)1249 705168 |
Cora McCallum |
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Head of Investor Relations & Corporate Communications |
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www.alliancepharma.co.uk |
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Buchanan | + 44 (0)20 7466 5000 |
Mark Court / Sophie Wills / Hannah Ratcliff |
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Numis Securities Limited | + 44 (0)20 7260 1000 |
Nominated Adviser: Freddie Barnfield / Duncan Monteith |
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Corporate Broking: James Black |
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Investec Bank plc | + 44 (0) 20 7597 5970 |
Corporate Finance: Daniel Adams |
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Corporate Broking: Patrick Robb |
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About Alliance
Alliance Pharma plc (AIM: APH) is an international healthcare group. Our purpose is to improve the lives of consumers and patients through making available a range of clinically valuable healthcare products.
Our core focus is on the marketing of Consumer Healthcare brands, complemented by a smaller Prescription Medicines business. In total, we hold marketing rights to around 80 brands, with revenues generated from a mix of direct, distributor and e-commerce sales.
Headquartered in the UK, the Group employs around 250 people based in locations across Europe, North America, and the Asia Pacific region. By outsourcing our manufacturing and logistics operations, we remain asset-light and focused on maximising the value of our brands.
For more information on Alliance, please visit our website: www.alliancepharmaceuticals.com