The pharmaceutical firm is defensive and cash generative, says the broker, while the implications of lost sales from its Deltacortril product are not understood by investors
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Alliance Pharma plc is a United Kingdom-based pharmaceutical company. The Company is engaged in the development, marketing and distribution of pharmaceutical products. Its brands include Nu-Seals, Forceval, Hydromol, Deltacortril, Symmetrel, Syntocinon, Naseptin, Syntometrine, Synacthen and Slow-K.
14/05/12
Notification of Major Interest in Shares10/04/12
Notice of AGM27/03/12
Annual Report and Accounts22/03/12
Preliminary Results21/03/12
CULS Conversion08/12/11
The pharmaceutical firm is defensive and cash generative, says the broker, while the implications of lost sales from its Deltacortril product are not understood by investors
17/11/11
The broker says that the life sciences firm demonstrates solid underlying revenue growth with strong cash generation and a progressive dividend policy
07/09/11
Steady sales growth among non-Deltacortril products and the prospect of further acquisitions has led house broker Numis to set a price target of 37 pence each for Alliance’s shares
20/07/11
Alliance Pharma focuses on speciality drugs and treatments for a range of health issues. The firm has been highly acquisitive since it was founded in 1998 and in recent years this acquisition strategy has paid off in terms of both revenue and profit. Here, we take a close look at the business
06/07/11
Numis and FinnCap both rate Alliance Pharma's shares as a 'buy' after Alliance said first-half sales would be £1 million ahead of H1 2010. Numis has set a target price of 37 pence for the shares
22/03/12
Alliance Pharma: Underlying growth of business remains strong25/01/12
Alliance Pharma remains a ‘buy’ at Investec Securities16/01/12
Alliance Pharma: Numis maintains 37p price target16/01/12
Alliance Pharma profits forecast to meet expectations19/12/11
Alliance Pharma acquires Quinoderm and Ceanel brands for £1.5 mln30/03/2012
29/03/2012
24/06/2011
23/06/2011
16/07/2010
22/07/2009
Company Presentation July 200901/03/2009
Preliminary Results - March 2009Alliance is a speciality pharmaceutical group based in the United Kingdom and listed on AIM. The group was founded in 1998 and since then has established a strong track record of acquiring the rights to established niche products. Alliance now owns or licences over 50 prescription products. Pro forma annual sales now exceed £40m.
Alliance maintains strategic and controlling functions with a management team possessing considerable large pharmaceutical company experience. More labour and capital intensive functions are outsourced to maximise efficiency and profitability.
The core of Alliances' activities are in the United Kingdom and the Republic of Ireland. The group also sells into approximately 20 other countries Worldwide, including via a joint venture into China.
Alliance Pharmaceuticals is a member of the ABPI (Association of the British Pharmaceutical Industry) www.abpi.org.uk and the PAGB (Proprietary Association of Great Britain) www.pagb.org.uk.
Key Products
DELTACORTRIL
An enteric coated tablet formulation of the steroid prednsiolone. DELTACORTRIL was acquired from Pfizer in 2006. It is indicated for a wide range of inflammatory and allergic disorders. This product range has grown substantially since acquisition.
NU-SEALS
An enteric-coated aspirin tablet. The majority of sales are for the 75mg version sold in the Republic of Ireland. This product is principally used as an anti clotting agent prescribed to prevent heart attacks and strokes. NU-SEALS was acquired from Lilly in 2002 and since then its sales have grown substantially.
FORCEVAL
FORCEVAL capsules are a vitamin and mineral supplement. The majority of sales come from the UK and China markets. In the UK FORCEVAL is in the main prescribed for nutritional deficits caused by disease or restricted diets. The capsules are also available over the counter.
The largest single potential market for FORCEVAL however is China. Here it is has been adopted by some state family planning clinics as a supplement for women planning or having a baby. The aim is to prevent birth defects. FORCEVAL was acquired by Alliance in 2004 and since then its sales have grown substantially.
IMMUCYST
An immunotherapy based on the BCG bacillus. IMMUCYST is instilled into the bladder of people suffering from superficial bladder cancer or following surgical removal of bladder tumours. The product causes an acute local inflammatory and immune response as a result of which white blood cells infiltrate the bladder and attack the cancerous cells. This product was acquired with Cambridge laboratories in 2010. Since then strong growth has continued.
HYDROMOL
HYDROMOL is the brand name for a range of emollient products. The range includes ointments, creams and bath additives. These products are principally prescribed in the UK to treat common dry skin conditions such as Eczema and Psoriasis. HYDROMOL was acquired from Ferndale in 2006 and since then its sales have tripled.

Established Products
The established products business is our core business. We acquire good, substantial products that continue to meet medical needs. In the UK we have become a leader in the acquisition and management of established products. These products typically grow modestly without active promotion as market demand increases due to changing demographics. The risk of attrition due to competition has usually already occurred or is limited for these products. The value of these product assets is sustained through our ability to keep them up to date and maintain continuity of supply.
Having acquired these products’ our team has a unique collection of skills to selectively make medicines better and breathe new life into them. BUCCASTEM, DELTACORTRIL and NU-SEALS are just some of the products that have benefitted from this extra treatment and additional value has been extracted.
Depending on the elements of the marketing mix required these products may find their way into our related business units or into partnerships with other players. Whatever the case our aim is to maximise the value of the acquired assets for our shareholders.
For further information on establised products please click here
Dermatology
The Dermatology Business Unit has evolved out of our core established products business and has allowed Alliance to broaden its portfolio through the acquisition of selected dermatological products. These include treatments for eczema, psoriasis, ichthyosis, acne, warts and irritated skin.
The acquisition and subsequent promotion of the Hydromol range has proved particularly successful with sales tripling over the last 4 years. The HYDROMOL Range consists of HYDROMOL Bath and Shower Emollient, HYDROMOL Cream, HYDROMOL Ointment and HYDROMOL Intensive.
Further information can be found on the HYDROMOL website www.hydromol.co.uk
The addition of TIMODINE to the dermatology business in 2009 is an example of Alliance’s continued ambition to expand its portfolio and establish itself in the dermatology market.
International
The International business at Alliance Pharmaceuticals is responsible for c£9m in annual sales. Key international markets are China and the Republic of Ireland.
In addition we sell our products in over 25 territories. Key international brands are NU-SEALS and FORCEVAL. The International business has grown historically through acquisitions of business and products and the development of a network of distributors.
Cambridge Laboratories
The acquisition of Cambridge Laboratories in 2010 enabled Alliance to broaden its business strategy with a specialist business unit focused on the promotion and supply of specialist secondary care medicines. It provides full and direct key account coverage to hospitals across the UK, specifically in the therapeutic areas of urology and oncology.
The Cambridge products include the BCG immunotherapy brand IMMUCYST 81MG, which is for the treatment of non invasive bladder cancer. Non muscle invasive bladder cancer accounts for 70% of diagnosed bladder cancer in the UK.
Further information can be found on the IMMUCYST 81MG website www.immucyst.com
Other products include GELCLAIR, for the management of chemotherapy and radiotherapy induced oral mucositis, a painful and debilitating side effect of cancer treatments.
Further information can be found on the GELCLAIR website www.gelclair.co.uk
Broker & Nominated Advisor: Numis Securities
Bank: Lloyds Banking Group
Auditor: Grant Thornton UK LLP
Financial PR: Buchanan Communications
Solicitor: Fasken Martineau LLP
Solicitor: Eversheds LLP
Alliance Pharma plc
Avonbridge House
Bath Road
Chippenham
Wiltshire SN15 2BB
United Kingdom
Tel: +44 (0)1249 466966
Fax: +44 (0)1249 466977
Email: info@alliancepharma.co.uk
Investor Relations: ir@alliancepharma.co.uk
Business Development: bd@alliancepharma.co.uk
International: international@alliancepharma.co.uk
Alliance Pharma plc
Registered Office as above
Registered in England
Company Number 04241478
Alliance Pharmaceuticals Limited
Registered Office as above
Registered in England
Company Number 03250064
Last updated: 05/07/11
| Major Shareholders | Amount | % Holding |
| John Dawson (beneficial) | 24,460,079 | 10.21 |
| John Dawson (non beneficial) | 20,000,000 | 8.35 |
| Nigel Wray | 31,619,995 | 13.21 |
| Aviva Investors Global Services | 24,316,755 | 10.16 |
| MVM Life Science Partners | 19,300,000 | 8.06 |
| Stella Dawson | 15,576,323 | 6.51 |
| Investec Asset Management | 7,750,000 | 3.24 |
| Slater Investments Ltd | 7,544,320 | 3.15 |
| Tony Booley | 6,810,723 | 2.84 |
| Hargreave Hale | 6,286,750 | 2.63 |