Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Alliance Pharma gets boost as morning sickness drug gets UK regulatory green light

Chief executive Peter Butterfield said: "We are delighted by this news and look forward to launching Diclectin later this year."
Child hugs pregnant woman
Diclectin has been used in Canada for the last 40 years as the standard of care for morning sickness having been prescribed to more than 30mln sufferers

Alliance Pharma plc (LON:APH) has received a boost with the news that an important drug in its portfolio has received UK regulatory sign-off.

The Medicines and Healthcare products Regulatory Agency (MHRA) and the Commission on Human Medicines (CHM) have given market authorisation to Diclectinfor women suffering nausea and vomiting during pregnancy.

Developed by Duchesnay Inc, Alliance acquired the UK rights to the product in 2015.

Standard of care in Canada

Diclectin has been used in Canada for the last 40 years as the standard of care for morning sickness having been prescribed to more than 30mln sufferers.

So it came as surprise and setback when the UK drugs watchdog initially knocked back the application and it has taken almost a year to resolve certain unnamed "issues" flagged by the MHRA.

Chief executive Peter Butterfield said: "We are delighted by this news and look forward to launching Diclectin later this year. 

"There are currently no licenced treatments for nausea and vomiting of pregnancy in the UK, highlighting a clear unmet need for patients and clinicians

"For Alliance, Diclectin represents a sizeable mid-term opportunity and also allows us to further leverage our European footprint."

Fourth international drug

The company has grown via a series of well-judged acquisitions and Alliance owns around 90 pharmaceutical and healthcare products and sells into over 100 countries.

In that portfolio, it has what it calls ‘local hero’ lines, which sell well in a particular territory or country.

The crown jewels are its ‘global stars’, which are managed and marketed centrally and, as the name suggests, are sold internationally.

The approval of Diclectin, for which Alliance also hold the European rights, adds a fourth international drug to the company’s portfolio.

The other three are Vamousse, a head lice treatment, Kelo-cote, a scar reduction product and MacuShield, a supplement recommended by eye experts.

Business doing well 

In an update last month, Alliance said it was seeing "good growth" from Kelo-cote, while its two most recent acquisitions, Vamousse and Ametop, an anaesthetic gel, were performing in line with expectations.
Financially, it said it continued to generate good cash flow, which in turn was helping reduce net debt.

The shares rose 5.6% to 95p, valuing the business at £452mln. Numis repeated its ‘add’ recommendation an 99p price target.

Analyst Sally Taylor called the Diclectin announcement "positive news".

"We expect the shares to respond favourably as Alliance adds a fourth international growth brand to its portfolio and plans to leverage its expanded international platform.” the Numis number cruncher added. 

 

 

View full APH profile View Profile

Alliance Pharma plc Timeline

Related Articles

Collagen testing
August 17 2018
Since reporting its full-year results on July 10, the AIM-listed shares have rallied over 38% in the past month to 3.65p currently, taking year-to-date gains to a third
Cyrptocurrencies
June 27 2018
Lancor Scientific is aiming to carry out an initial coin offering by issuing Medici, a new currency based on Ethereum to help Tumour Trace to fund further development
Callitas CEO James Thompson
July 20 2018
CannaStrips will generate near-term revenue, while the company’s blue-sky pharmaceutical assets and orphan drug are solid, long-term plays

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors 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