Hydromol Acquisition

9 Feb 2006 13:05

Alliance Pharma PLC09 February 2006 For immediate release 9th February 2006 ALLIANCE PHARMA PLC ("Alliance Pharma" or "the Company") Significant expansion of skincare portfolio through acquisition of Hydromol dermatology range Alliance Pharma plc (AIM: APH), an emerging speciality pharmaceutical company,is pleased to announce that it has agreed to acquire the Hydromol range ofprescription dermatological products for eczema and other skin conditions fromFerndale Pharmaceuticals Ltd for a cash consideration of £3.25 million. The Hydromol range, comprising ointments, creams and bath oils, will bedistributed through Alliance Pharma's existing dermatology salesforce,delivering critical mass to the Company's skincare franchise. The Hydromol range, which grew at 31% in 2005, recorded pro-forma sales of £0.95million in the year to 31 December 2005 and gross profit of £0.57 million. Alliance Pharma intends to maximise the sales of Hydromol by extending theproduct's range and widening its geographic distribution via the Company'snetwork of international distributors. Funding for the acquisition, which is expected to be earnings enhancing in theyear to 31 December 2006, will be via senior debt provided by the Bank ofScotland. The Company believes that this financing method is appropriate for theacquisition of cash generative assets where interest cover is generous. Alliance Pharma's current dermatology portfolio includes Aquadrate, Alphaderm,Occlusal, Pentrax, Meted and Acnisal. John Dawson, Alliance Pharma's Chief Executive, commented: "This is the ninthacquisition that we have made in the past eight years and it will significantlystrengthen our dermatology franchise. The cash flow from the acquisition willhelp fund trials into our innovative treatment for sleep disorders, PosidormTM,for which we are currently in early stage out-licensing discussions." 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/Lisa Baderoon/Rebecca 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 30 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