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viewAlliance Pharma PLC

Alliance Pharma hints at further acquisitions as it reports sales up by one third in half-year results


  • Revenues up almost a third in the first half of the year 
  • Integrating Nizoral acquisition from Johnson & Johnson 
  • Organic growth in star brands up
  • Further acquisitions eyed 

Quick facts: Alliance Pharma PLC

Price: 71 GBX

Market: AIM
Market Cap: £368.89 m


What Alliance Pharma does:

Alliance Pharma PLC (LON:APH) is an AIM traded company that focuses on the acquisition and licensing of pharmaceutical and healthcare products.

Over the past 20 years the group has made 35 acquisitions, which include healthcare and pharma businesses, and rights to products.

Alliance has five so-called "star" brands, which are managed and marketed centrally and sold internationally.

These brands include: Lice treatment Vamousse; Kelo-cote, a scar reduction product; MacuShield, a supplement recommended by eye experts; anti-fungal shampoo Nizoral; and Xonvea, a pregnancy nausea treatment.

The company runs its business across three broad regions: Europe, where the company sells a combination of prescription and OTC products; the newer US business, where it is focusing on the promotion of Vamousse; and the fast-growing Asia Pacific business, which has a tilt towards dermatology.


Inflection points:

  • Revenues for the six months until 30 June were £70.3mln, up 28% on a constant currency basis, or an organic 10% if the impact of recent purchases was stripped out.
  • Net debt fell by £11.4mln in the six months from the end of December to £74.1mln.
  • Its interim dividend rose 10% to 0.536p, for the "seventh or eighth time".
  • Overseas sales exceeded surpassed domestic revenues in 2018 for the first time ever.
  • The integration of Nizoral, a Johnson & Johnson medicated shampoo, for which Alliance acquired the Asia-Pacific rights last June for £60mln, is progressing well and traded in line with expectations last year.
  • Chief executive Peter Butterfield has hinted at further acquisitions as the group looks to deploy its strong cash flow to further develop the business.


Watch the interview:


Blue Sky:

Butterfield said that the pharma company's aim is to "bring acquisitions in that fit those geographic footprints for us and start to drive some synergy out of the base that we’ve been building over the last three years.”

He added that the acquisition of Nizoral from giant Johnson & Johnson last year is a complex process across 14 territories and that should be mostly finished by next June.

Underlying organic growth was up 10% in the six months ending June 30, which Butterfield said was "very positive for keeping the business growing even without acquisitions".

Strong cash generation from the business also allowed it “de-lever” in the first half of the year, and it increased its dividend 10% to provide shareholders with more value.

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