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30/03/2012

Alliance Pharma CEO looks forward to continued good growth prospects

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Additional Information
Market: AIM
Sector: Pharmaceuticals & Biotechnology
EPIC: APH
Latest Price: 28.75p  (0,00%)
52-week High: 37.13p
52-week Low: 26.25p
Market Cap: 69.17M
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Alliance Pharma
www.alliancepharma.co.uk

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.

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Alliance Pharma remains a ‘buy’ at Investec Securities

25th Jan 2012, 11:03 am by Andre Lamberti Broker Investec Securities has reiterated its ‘buy’ stance on Alliance Pharma and said the recent sell-off has created a more attractive buying opportunity

Broker Investec Securities has reiterated its ‘buy’ stance on branded medicines seller Alliance Pharma (LON:APH) after last week’s pre-close trading statement, and said the recent sell-off has created a more attractive buying opportunity.

Alliance announced last week that pre-tax profits will be in line with market expectations with annual revenues predicted to be around £46 million for the year just ended. 

The speciality pharmaceutical group said its Deltacortril steroid pill continued to be affected by increased competition. Total sales for the 12 months to December 31 were £4.7 million, with £1.1 million coming in the second half.

“We are implementing a number of efficiency measures and other cost savings and believe that these steps, together with the impact of the three acquisitions completed in 2011, should largely compensate for the impact of the further reduction in sales of (steroid pill) Deltacortril and the risk to (coted aspirin tablet) Nu-Seals,” the company had said.

In a note, Investec said the update saw its revenue forecasts marginally exceeded, but the net effect of minor operational issues, a slightly unfavourable outlook for Nu-Seals and recent acquisitions drive minor downgrades to its forecasts, which were at the higher end of consensus.

While the new forecasts lead the broker to reduce its price target to 34 pence from 37 pence, the target still supports a ‘buy’ recommendation.  Alliance was last trading at 28.7 pence.

Analyst Nicholas Keher believes there is potential for further share price rises from acquisitions, given Alliance’s fire-power with £13.5 million of its revolving credit facility still untapped and the active search under way.

“Liquidity remains an issue, but has exaggerated the (recent) sell-off and created a more attractive buying opportunity in our view,” he added.

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