Acquisition of Lypsyl

RNS Number : 8040V

Alliance Pharma PLC

18 December 2013

 



For immediate release

18 December 2013

 

ALLIANCE PHARMA PLC

("Alliance" or the "Company")

Acquisition of Lypsyl^TM

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces that its wholly owned subsidiary Alliance Pharmaceuticals Limited has acquired all UK and Republic of Ireland (ROI) rights to Lypsyl^TM from Novartis AG ( "Novartis") for a consideration of US$3.0 million.

Lypsyl is a well-known personal care brand used to moisturise lips. Novartis and its affiliates ("the Novartis Group") have been selling Lypsyl in the UK and ROI for many years. 

In the 12 months to September 2013, total sales of Lypsyl by the Novartis Group were £1.2 million and the gross margin generated was £0.5 million. Alliance intends to reinvest a proportion of the gross margin in marketing activity to promote the brand.

The US$3.0 million consideration is being funded from available cash.  The Group's £25 million acquisition facility remains undrawn.

Commenting on the acquisition, John Dawson, Alliance Pharma's Chief Executive, said: "We are delighted to acquire this well-known consumer brand which has been on the market for a century.  The acquisition will be immediately earnings enhancing and it fits well with that part of our strategy focused on increasing our consumer care sales."

For further information:

Alliance Pharma plc	+ 44 (0) 1249 466966
John Dawson, Chief Executive
Richard Wright, Finance Director
Buchanan	+ 44 (0) 20 7466 5000
Mark Court / Fiona Henson / Sophie Cowles
Numis Securities Limited	+ 44 (0) 20 7260 1000
Nominated Adviser: Michael Meade / Oliver Cardigan / Freddie Barnfield
Corporate Broking: David Poutney

Notes to editors:

About Alliance

Alliance, founded in 1998, is an AIM listed speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has a strong track record of acquiring the rights to established niche products and owns or licenses the rights to more than 65 products and continues to explore opportunities to expand the range.

Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.

 

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