Date: 2012-08-02
Type of information: Product acquisition
Compound: antimalarial brands Paludrine™, Avloclor™ and Savarine™
Company: Alliance Pharma (UK) AstraZeneca (UK)
Therapeutic area: Parasitic diseases
Type agreement: acquisition
Action mechanism:
Disease:
Details: Alliance Pharma has announced that its wholly owned subsidiary Alliance Pharmaceuticals Limited has acquired the antimalarial brands Paludrine™, Avloclor™ and Savarine™ from AstraZeneca UK. The acquired products are sold mainly in the UK and France. Alliance has also 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.
Financial terms: 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.
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