Pre-Close Trading Update
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical company, announces its pre-close trading update ahead of its preliminary results for the year ended 31 December 2015.
Group revenue (excluding JV sales) for 2015 is expected to be more than 10 per cent up at £48.2 million (2014: £43.5 million), including revenues of £0.8 million following the acquisition of the Healthcare Products Business from Sinclair IS Pharma plc on 17 December 2015. The Company's trading profit before tax is expected to be in line with the Board's expectations.
MacuShield™, acquired in early February 2015, contributed £3.5 million of sales in the year, and continued growth in the Hydromol™ dermatology range resulted in sales 10% above last year at £6.6 million. Forceval™ UK grew strongly with sales of £2.2 million, £0.6 million above last year, following continued recovery from previous stock-outs. These and other growth areas offset the impact of the hand back of nine products at the end of 2014 to Novartis, which generated sales of £1.6 million in 2014, and the continued decline in sales of Nu-Seals™, from £2.5 million in 2014 to £1.9 million in 2015, due to generic competition in Ireland.
The integration of the transformational acquisition of the Sinclair Healthcare Products Business is progressing well. Costs associated with this acquisition are expected to be in the range of £2 million for the year ended 31 December 2015, in line with management's expectations. The Healthcare Products Business comprises 27 products, which recorded sales of £43.3 million in the 12 months to 30 June 2015.
As previously announced, Alliance negotiated new and enlarged bank facilities of £100.0 million to part-finance the acquisition of the Healthcare Products Business. This new facility replaced the Company's previous £55.0 million facility. As at 31 December 2015 net bank debt of £72.4 million was in line with expectations and is anticipated to reduce progressively as a result of the cash generation of the enlarged business.
The Company expects to announce its preliminary results for the twelve months ended 31 December 2015 on Thursday 7 April 2016.
For further information:
Alliance Pharma plc + 44 (0)1249 466966
Peter Butterfield, Chief Executive Officer
Andrew Franklin, Chief Financial Officer
Buchanan + 44 (0)20 7466 5000
Mark Court / Sophie Wills / Hannah Ratcliff
Numis Securities Limited + 44 (0)20 7260 1000
Nominated Adviser: Michael Meade / Freddie Barnfield
Corporate Broking: James Black
Investec Bank plc + 44 (0)20 7597 5970
Corporate Finance: Daniel Adams / Ed Thomas
Corporate Broking: Patrick Robb / Tejas Padalkar
Notes to Editors:
About Alliance Pharma
Alliance, founded in 1998, is an international speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has sales in more than 100 countries worldwide via direct sales, joint ventures and a network of distributors. Alliance has a strong track record of acquiring the rights to established niche products and it currently owns or licenses the rights to approximately 90 pharmaceutical and consumer healthcare products. The Company continues to explore opportunities to expand its product portfolio.
Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH