Alliance Pharma bags Novartis drug
10.06.2013 - British Alliance Pharma plc has bought the complete rights for Novartis’ obstetric drug Syntometrine.
The Chippenham-based specialty company already owns the UK rights to Syntometrine, an obstetric drug used in the final stage of labour. With the US$11.5m deal, Alliance Pharma adds Novartis’ assets in other countries to its portfolio.
The Novartis Group has been selling Syntometrine in Australia, South Africa, Malaysia and New Zealand. In the year from March 2012 to March 2013, the Swiss drug giant made US$3.2m in sales with Syntometrine; the gross margin generated was US$2.8m. Alliance Pharma estimates its annual distribution and operating costs associated with the new territories at US$780,000.
The British company, which generates annual sales of US$69.8m last year, will finance the deal from existing cash and bank facilities, including a US$5.4m drawdown from the group's US$40.7m acquisition facilities. This leaves US$15m of the facilities available to fund further acquisitions.