Alliance Pharmaceuticals Limited Acquires brands Paludrine, Avloclor and Savarine
Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces that its wholly owned subsidiary Alliance Pharmaceuticals Limited has acquired the antimalarial brands PaludrineTM, AvloclorTM and SavarineTMfrom AstraZeneca UK Limited.
Alliance expects the acquired products to generate incremental contribution before financing costs of approximately £1.1 million per annum. Alliance is paying £4.2 million initial consideration to AstraZeneca UK Limited and may pay a further sum over the next three years, which is not expected to exceed £1.0 million, dependent on sales of the brands.
The initial consideration is being funded from existing cash and bank facilities, including a £2 million drawdown from the Group's £20 million Revolving Credit Facility ("RCF"), and any deferred consideration will be funded from future cash generation. This will bring the utilisation of the RCF to £8.5 million.
The acquired products are sold mainly in the UK and France.
Appointment of Country Managers
Alliance has recently appointed a Country Manager for France, Dr Philippe Pasdelou, who will manage the sales of the anti-malarial brands in France. Philippe has considerable experience in the pharmaceutical industry, including managing several companies in France and in other countries. He also has experience setting up a company with a similar business model to Alliance.
Alliance has also recently appointed Lars Börger as Country Manager for Germany, Switzerland and Austria. Lars has experience across a number of pharmaceutical and medical device companies, in both strategic and operational roles, and was most recently Director Licensing with Grünenthal.
The Country Managers will initially focus on securing acquisition and in-licensing opportunities in line with Alliance's strategy to expand into mainland Europe.
Commenting on the acquisition and the Country Manager appointments, John Dawson, Alliance Pharma's Chief Executive, said: "We are delighted to add these important antimalarial brands to the Alliance portfolio, and at the same time to have appointed such highly experienced executives as Philippe Pasdelou and Lars Börger to spearhead our expansion in mainland Europe."