Alliance Pharma PLC Acquisition of MacuVision (7700D)
February 02 2015 - 7:15AM
UK Regulatory
TIDMAPH
RNS Number : 7700D
Alliance Pharma PLC
02 February 2015
For immediate release 2 February 2015
ALLIANCE PHARMA PLC
("Alliance" or the "Company")
Acquisition of MacuVision
Alliance Pharma plc (AIM: APH), the speciality pharmaceutical
company, is pleased to announce that its wholly owned subsidiary
Alliance Pharmaceuticals Limited has acquired MacuVision Europe
Limited ("MacuVision") for initial consideration of GBP5.5 million
plus the net asset value of MacuVision at completion (estimated at
GBPnil) and deferred contingent consideration of up to GBP6.0
million. MacuVision sells MacuShield, an eye care treatment
designed to be taken by sufferers of dry age-related macular
degeneration and other eye conditions.
In the twelve months to 31 March 2014 the turnover of
Solihull-based MacuVision was GBP2.7 million and the EBITDA
(earnings before interest, tax, depreciation and amortisation) was
GBP0.9 million. In the twelve months to 31 December 2014,
MacuShield sales were GBP3.4 million. As at 31 March 2014
MacuVision had net assets of GBP0.5 million.
MacuShield is a once-a-day capsule that contains
meso-zeaxanthin, lutein and zeaxanthin - three carotenoids, or
pigments. These three carotenoids are naturally present in the eye,
where together they are known as macular pigment.
Macular pigment helps to protect the eye by neutralising free
radicals and absorbing blue light, which can damage the retina.
With age, and particularly in dry age-related macular degeneration
and other eye conditions, the level of macular pigment is reduced
creating the need for a dietary supplement to boost the level of
pigment in the retina.
Around 75% of the MacuShield sales are generated in the UK, with
the remainder being sales to international distributors, mainly in
Europe. Further details about MacuShield are available at this
link: www.macushield.co.uk.
The initial consideration is being funded from existing cash and
bank facilities, including a GBP5.5 million drawdown from the
Group's GBP25 million Revolving Credit Facility ("RCF"). This
brings the utilisation of the RCF to GBP6.8 million. The deferred
contingent consideration will be funded from cash generation and
existing bank facilities. Up to GBP4.0 million of this will be
payable after one year and up to GBP2.0m will be payable after two
years, both dependent on the revenue growth of MacuShield.
Key marketing staff will transfer to Alliance from MacuVision
and the founders, Trevor and Anne McCormack, will continue their
involvement in the business for twelve months.
Commenting on the acquisition, John Dawson, Alliance Pharma's
Chief Executive, said: "We are delighted to start the year with
this important acquisition, which brings both an immediate
improvement in earnings and the potential of strong organic
growth."
For further information:
Alliance Pharma plc + 44 (0) 1249 466966
John Dawson, Chief Executive
Richard Wright, Finance Director
www.alliancepharma.co.uk
Buchanan + 44 (0) 20 7466 5000
Mark Court / Sophie Cowles / Jane
Glover
Numis Securities Limited + 44 (0) 20 7260 1000
Nominated Adviser: Michael Meade /
Freddie Barnfield
Corporate Broking: David Poutney
Notes to editors:
About Alliance
Alliance, founded in 1998, is an AIM listed speciality
pharmaceutical company based in Chippenham, Wiltshire, UK. The
Company has a strong track record of acquiring the rights to
established niche products and owns or licenses the rights to more
than 60 pharmaceutical products and continues to explore
opportunities to expand the range.
Alliance joined the AIM market of the London Stock Exchange in
December 2003 and trades under the symbol APH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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