Tuesday, June 11, 2013

Alliance pharma acquires worldwide rights to Novartis Obstetric drug - Syntometrine

UK based Alliance Pharma plc (APH.L), a specialty pharmaceutical company has acquired all existing rights to Syntometrine, an obstetric drug used in the final stage of labour, from Novartis for $11.5 million. Alliance already owns the UK rights to Syntometrine.

Transaction Valuation

The deal values Syntometrine at 3.6x sales. Total sales of Syntometrine in the 12 months to March 2013 by Novartis Group in a lot of countries including Australia, South Africa, Malaysia and New Zealand were $3.2 million, and the gross margin generated was $2.8 million, Alliance said in a statement. Alliance expects to have annual distribution and operating costs of approximately 0.5 million pounds associated with these new territories.
 
Alliance said that the $11.5 million consideration is being funded from existing cash and bank facilities, including a 3.5 million pounds drawdown from the Group's 30 million pounds acquisition facilities, leaving a further 10 million pounds for the next acquisitions.