Syntometrine Acquisition

23 Oct 2006 07:01

Alliance Pharma PLC23 October 2006 For immediate release 23 October 2006 ALLIANCE PHARMA PLC ("Alliance Pharma" or "the Company") Alliance Pharma acquires UK rights to Syntometrine(R) Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company,is pleased to announce that it has acquired the UK marketing rights fromNovartis to Syntometrine(R), a product used in childbirth, for a one-off cashconsideration of £2.0 million. Alliance Pharma has marketed and distributed Syntometrine(R) in the UK since1998 under a distribution agreement under which the Company markets a portfolioof products for Novartis. Going forwards, the distribution agreement willinclude ten brands, covering a wide range of medical uses. Following the acquisition of Syntometrine(R), its manufacture will betransferred to one of the contract manufacturers used by Alliance Pharma. Syntometrine(R), which had annual sales to end of September 2006 of £788,000, isa standard medicine routinely used in childbirth to prevent maternalhaemorrhage. The product is one of the brands in Alliance Pharma's portfolio of Core Brands,which have steady and predictable sales. The cash generation from the CoreBrands is used to fund the Company's development projects, which includeIsprelor(TM), a treatment for the induction of labour currently undergoing PhaseIII clinical trials. The Syntometrine(R) acquisition is being financed through the Company's seniordebt facility provided by the Bank of Scotland. John Dawson, Alliance Pharma's Chief Executive, commented: "We have marketedSyntometrine(R) on behalf of Novartis in the UK since 1998 and are nowdelighted to have acquired the UK rights, not least because of the marginimprovement that we should be able to achieve." 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 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