£20m fund gives Alliance Pharma prescription for more acquisitions as turnover edges up

January 15, 2014

Alliance Pharma, the highly-acquisitive Chippenham-based speciality pharmaceutical firm, has more than £20m on tap to add to its drugs cabinet, it said as it unveiled its latest deal and forecast a small increase in turnover for 2013.

The firm, which buys underperforming drugs brands and realises their potential, has acquired thyroid treatment Irena in Germany from subsidiaries of pharma giant Bayer.

In the 12 months to October 2013, total sales of Irenat were €800,000 (£665,670) and the gross margin generated was €500,000 (£416,000).

In a pre-close trading update ahead of its preliminary results for last year, Alliance said sales of its Hydromo dermatology range grew from £4.7m in 2012 to £5.3m. The Opus Group stoma care business made a substantial contribution to sales of £3.9m while sales of its cyclical toxicology product peaked in the first half of 2013.

However, the product now has competition from a number of new market entrants and Alliance expects markedly reduced sales in the next procurement cycle due in 2015.

International sales of Syntometrine, the obstetric drug acquired in June, were in line with expectations at £1.2m.

Inefficient packaging machinery hit production volumes of Ashton & Parsons infants’ powder acquired in 2011.  New machinery has just been commissioned, Alliance said.

Turnover for 2013 is expected to be up slightly from £44.9m to £45.5m while pre-tax profits are expected to be in line with current market expectations.

Alliance said it had more than £20m of committed, unutilised acquisition facility available to fund acquisition opportunities. 

Its preliminary results for 2013 are expected to be announced on March 26.


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