Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Alliance Pharma deal an important step towards internationalisation, says City research house

The latest addition to the Alliance Pharma medicine chest represents an “important step to the internationalisation of the group”, according to a City research house. 
Alliance Pharma deal an important step towards internationalisation, says City research house

The latest addition to the Alliance Pharma (LON:APH) medicine chest represents an “important step to the internationalisation of the group”, according to the City research house Hardman & Co.

Alliance said last week it will pay US$11.5mln to acquire full ownership of obstetric drug Syntometrine from Swiss giant Novartis.

The speciality pharma group already owns the UK rights to the treatment, which is used in the final stages of labour.

However, Syntometrine sells in around a dozen other major territories, including Australia, South Africa, Malaysia and New Zealand.

Hardman is predicting Alliance’s overseas revenues will rise to around 30% of total sales in 2014, compared with just 18% last year.

Analysts point out the deal uses the blue-print that underpins company’s success – acquiring prescription drugs that require little or no marketing, but generate a solid revenue stream.

Outside the UK Syntometrine generates sales of US$3.2mln. 

Adjusting for inventories, Alliance has paid 3.5 times turnover and 5.5 times earnings for the product, specialist small-cap broker FinnCap said.   

“We believe is a fair price and in line with the multiples we have seen historically for such acquisitions.” 

At 11.30am, the shares were little changed at 37.9 pence, valuing Alliance Pharma at £94mln. In the past year the stock has increased in value by a third.

Ian_55ae0ddd437b7.jpg
Why Invest In Alliance Pharma plc? Read More Here

Register here to be notified of future APH Company articles
View full APH profile

Alliance Pharma plc Timeline

Big Picture
September 09 2015

Related Articles

shutterstock_327930536.jpg
February 18 2016
The timetable for the HCV test trials is relatively short
genomics.jpg
January 20 2016
“Redx Pharma’s in-licensed and internally generated pipeline of proprietary drug candidates targeting significant unmet medical needs, particularly in the fields of infection and oncology, offers unique exposure to a number of exciting early-stage opportunities, in our view,” said Shore Capital analyst Dr Tara Raveendran.
Peanuts.jpg
March 08 2016
Not to be sneezed at: Allergy Therapeutics' ground-breaking allergy vaccines address several lucrative markets

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.