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

Newswire
August 26 2016

Related Articles

Drugs
February 06 2017
The hybrid pharma services and drug development group has hit some key milestones over this year as trial results are eyed.
newspaper with word cancer magnified
January 30 2017
The start of 2017 has seen some good trial results for its skin cancer treatment, as well as a collaboration deal that will accelerate the development of its lung cancer drug
Novogen: Access latest PPT from Proactive's CEO Sessions
April 13 2017
Dr James Garner talked clinical-stage programs with investors.

© Proactive Investors 2017

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.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use