Alliance Pharma PLC
22 March 2007
For immediate release 22 March 2007
ALLIANCE PHARMA PLC
('Alliance Pharma' or 'the Company')
Acquires rights to market Forceval in China
Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company,
is pleased to announce that, in a joint venture with a local distributor, it has
acquired the rights to market the multivitamin Forceval in China, where the
product is endorsed by public health authorities as a nutritional supplement for
pregnant women to promote the birth of healthy babies.
The acquisition of the China rights, which is expected to be earnings enhancing
in the current year, completes Alliance's global distribution rights to market
Forceval; in November 2004 it acquired rights to the product for all territories
outside China.
Forceval was initially launched in China in 1999 and is sold in family planning
clinics and pharmacies. In 2006, the recorded sales of Forceval from the UK to
China were £1.9 million.
Alliance has acquired Forceval rights in China through a joint venture, Bellona
Group Ltd, which is 60 per cent owned by Alliance and 40 per cent owned by
Pacific Glory Development Ltd, a Chinese company that currently distributes
Forceval in China and will continue to do so. The rights were acquired by
Bellona for a consideration of £3.25 million, of which Alliance is contributing
£1.95 million from a debt facility provided by the Bank of Scotland. Bellona
acquired the rights from the administrator to Unigreg Ltd, which previously held
the worldwide rights to Forceval.
John Dawson, Alliance Pharma's Chief Executive, said: 'I am delighted to have
been able to secure this growth opportunity in a joint venture that brings
considerable local knowledge of the Chinese market. This transaction gives us a
low-risk bridgehead into China and completes our global distribution rights to
Forceval.'
For further information:
Alliance Pharma plc + 44 (0) 1249 466966
John Dawson, Chief Executive
Maddy Scott, Finance Director
www.alliancepharma.co.uk
Buchanan Communications + 44 (0) 20 7466 5000
Mark Court / Rebecca Skye Dietrich
Notes to editors
About Alliance Pharma
Alliance Pharma, founded in 1996, is an AIM listed emerging speciality
pharmaceutical company based in Chippenham, Wiltshire, UK. The company has a
strong track record of acquiring the rights to established niche brands and
owns, or shares, the rights to 34 branded pharmaceutical products and continues
to explore opportunities to expand the range.
Alliance Pharma's products are prescribed in the treatment of a wide range of
conditions and include brands used in periodontitis (a serious gum disease), the
prevention of heart disease, in Parkinson's disease, in nutrition, in nasal
infections, in the treatment of dermatological conditions and in childbirth.
Alliance Pharma's sales are mainly prescription driven. Its products are
distributed to hospitals directly and to pharmaceutical wholesalers which
service both hospital and retail pharmacies with their prescription
requirements.
Alliance Pharma is also developing novel products for sleep disorders and the
induction of labour.
Alliance Pharma joined the AIM market of the London Stock Exchange in December
2003 and trades under the symbol APH.
This information is provided by RNS
The company news service from the London Stock Exchange
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