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Alliance Pharma is back to buy-and-build

The specialist pharmaceutical group has added two new medicines to its portfolio in just one week
December 5, 2017

Alliance Pharma (APH) has come to the end of its acquisition hiatus. The specialist pharmaceutical group has spent $20.5m (£15.2m) on two new medicines in the past week: numbing gel Ametop and head-lice treatment Vamousse. The two drugs generated annual sales of $2.8m and $6.6m, respectively, for former owners Smith and Nephew (SN.) and TyraTech (TYR).

IC TIP: Buy at 62p

Alliance has returned to its buy-and-build strategy after successfully integrating the 27 products from Sinclair Pharma (SPH) bought in 2016. Both acquisitions will be funded through existing cash and debt facilities, which means net debt is expected to climb to 2.5 times adjusted cash profits by the end of 2017.